Funchal Has the Highest Rental Costs in Portugal
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%.
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%.
With access to affordable rental housing being very limited, President Albuquerque today called for allowing next-day evictions for tenants who fail to pay rent. He said this would reduce pressure on the housing market.
Rental prices in Madeira reached €16.7/m² in April 2026, rising 11.4% year on year and setting a new record level.
Madeira saw housing prices fall 8.3% in 2025, standing out from most Portuguese regions, where property values continued to rise despite fewer transactions nationwide.
Prices for renting in Madeira increased 5.0% since December and 5.2% 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.