Madeira Shows 1,200 Luxury Homes for Sale, the Largest Island Stock
Madeira remains the main island for families and investors searching for premium homes. Data from Idealista show that Madeira held 1,200 luxury houses for sale in the third quarter of 2025, far more than any other Portuguese island. This total is 49% higher than one year earlier.
The rise in available homes seems to have eased demand pressure, which fell by 30% over the same period. Median prices also slipped by 3%, settling at €1.82 million at the end of September.
These conditions place Madeira at the center of the island luxury market, supported by a wider range of houses and the only little supply of high-end luxury apartments, with around 370 units priced at a median of €1.58 million.
Demand from abroad for homes for sale is also quite significant on the island of Madeira , representing about 47% of the total recorded in the summer of 2025.
Madeira Records 47% Foreign Demand, While Porto Santo Shows 25.7%
Madeira also drew high levels of international attention, with 47% of searches for homes in summer 2025 coming from abroad. Interest mainly came from Germany, the United Kingdom, and the United States.
Porto Santo, however, showed far lower international demand at 25.7%. Combined with its smaller population and more limited market, this helps explain its reduced supply of luxury housing.
Across both archipelagos, most high-end properties are houses. More than 1,300 luxury homes were available in the Portuguese islands, and 98% were concentrated in Madeira and São Miguel.
On the remaining islands of the Azores and on Porto Santo, the supply of premium homes stayed equal to or below 10 units in the third quarter of 2025, making it too small for detailed analysis of price or demand trends.
São Miguel Registers 89 Premium Homes and a 10% Increase in Median Prices
In comparison, São Miguel is the second-largest market for luxury homes. The island recorded 89 high-end houses for sale in summer 2025, a 78% rise from the previous year.
According to Idealista, this wider stock was followed by a 45% fall in demand. Even so, median prices increased by 10%, reaching around €1.5 million. The data suggest that more expensive homes have entered the market.
Foreign Demand Exceeded 40% in All Azores Islands in Q3 2025
International interest continues to influence housing searches across the Azores. All nine islands registered more than 40% foreign demand for homes for sale in the third quarter of 2025.
On Corvo, Pico, Santa Maria, and Flores, international searches even passed 50%, overtaking domestic demand. The majority of searches came from the United States, Germany, and Canada. This strong level of foreign interest is most visible on the smaller islands, where the housing market is thin and more sensitive to changes in demand.
Source: Idealista
Care for a share?
Comments