Madeira Registers 14.6% Annual Increase, Well Above National Trend in 2025
Home prices in Madeira rose 14.6% over the past 12 months, placing the region among the fastest-growing housing markets in Portugal, according to the Idealista. The increase exceeded the national annual rise of 6.8% recorded in December 2025.
The rise followed a year of strong demand across the country. Buyer support remained in place through accessible interest rates and public aid for younger households, including exemptions from property transfer tax and a state guarantee. Measures to expand housing supply only arrived in December, as part of a fiscal package that still requires parliamentary approval.
Funchal Reaches €3,861 per Square Meter in December 2025
Within the region, Funchal stood out as one of the most expensive cities in Portugal to buy a home. In December 2025, the median asking price reached €3,861 per square meter, according to Idealista.
That figure placed Funchal behind only Lisbon, at €5,995 per square meter, and Porto, at €3,885. The data highlights the growing gap between Madeira’s capital and many mainland cities, where prices remain lower despite recent increases.
Madeira Island Ranks Fifth Most Expensive at €3,715 per Square Meter
When prices are compared by district and island, Madeira ranked as the fifth most expensive market nationwide. In December, the median price on the island stood at €3,715 per square meter. Only Lisbon (€4,573), Faro (€3,870), Porto Santo (€3,729) and Setúbal (€3,195) recorded higher or comparable levels.
Housing Prices by Region
Methodology
INE previoously reported that the median price for real estate in Madeira is falling for the second consecutive quarter. Official property statistics vary because they capture different stages of the transaction.
Idealista reflects "asking prices" (seller expectations/marketing)
Whereas INE reports "closing prices" (notarized deeds), which are always lower due to negotiation or tax-saving under-declarations.
Meanwhile, Bank Appraisals offer a middle ground, providing valuations based on objective collateral worth rather than sentiment. Together, these metrics reveal a gap between what sellers want, what buyers officially pay, and what banks actually value.
Source: Idealista
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