41% of T1 Apartments in Funchal Are Selling Within a Month
Funchal’s real estate market shows rapid sales for smaller apartments, with T1 and T2 units selling often within a month.
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!
Time is money in Funchal’s housing market: around 13% of homes sold in less than a week, although this figure was already higher in previous periods.
Buying property in Funchal gives just 4.8% return, below the 6.9% national average. Is the island losing appeal for investors, signaling the end of its real estate boom?
After construction restarted in 2023, land around Ponta do Pargo’s golf course doubled in price, attracting more foreign investors to the island.
The government announced a “shock policy” on housing, cutting VAT to 6% for construction, reducing income tax for moderate rentals, and increasing IMT for non-resident buyers. But will it be enough to tackle the housing crisis?
Câmara de Lobos moves to bridge its housing gap by speeding up approvals, providing tax incentives, and opening municipal land for new construction projects