Madeira Housing Values Rise 18.1% in One Year
In 2025, bank valuations for housing in Madeira increased 18.1% year-on-year.
In 2025, bank valuations for housing in Madeira increased 18.1% year-on-year.
Real estate sales and transaction values in Madeira are falling, yet limited supply and strong demand keep prices high - what will happen next? Two real estate consultants share their views.
According to Idealista, median rents in Madeira now match those in the Porto district, with Funchal further narrowing the gap with Porto city.
According to Idealista, Madeira recorded a 14.6% increase in property prices over the past year, proving robust market activity and tight housing conditions.
Santana is Madeira’s most affordable housing market, despite a yearly 21.1% increase, according to Idealista. See how the other municipalities rank.
Funchal’s real estate market shows rapid sales for smaller apartments, with T1 and T2 units selling often within a month.
Funchal’s affordable housing market has collapsed over the past five years. According to Idealista, homes under €200,000 now make up only 1% of listings, while mid-range properties also dropped sharply.
Madeira is the main market for luxury homes on the Portuguese islands. Rising supply, lower demand, and strong interest from abroad are shaping the region’s property scene.
Madeirans borrowed €570 million, mostly for buying homes, a 30% increase from 2023. Experts warn that high debt levels could trigger 2008-style risks if property values drop or incomes and interest rates change.
Funchal households face extreme housing costs, spending 100% of their income on rent in the Q3 2025. That is the highest rate in Portugal & more than three times than the recommended 30-33%.
The median price for real estate in Madeira is falling for the second consecutive quarter. Despite annual growth, property sales have also sharply declined - here's what could happen next!