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%.
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
Madeira has the highest share of property searches from abroad in Portugal. At the same time, foreign property purchases in Portugal have dropped to their lowest level since 2021.
Madeira recorded a sharp rise in family housing this year, with both licensed and completed units increasing
The European Commission will present its first plan for affordable housing this year, moving up the original 2026 schedule, as Portugal and other countries continue to face rising rents and housing shortages.
Funchal has become Portugal’s second most expensive city for room rentals, reaching an average of €440/month, surpassing Porto, while Lisbon remains the costliest with €550.