Funchal Madeira - best real estate investment in Portugal 2023

PUBLISHED ON 
13.1.2023

Madeira real estate is a magnet for home buyers and investors. Why wouldn't you select Madeira with its everlasting spring, magnificent ocean views, beautiful residences with abundant natural light, and all the facilities you could want?

Purchasing a Home in Portugal

75% of Portuguese residents are homeowners, substantially higher than the European norm. This is a 10% rise from the US and UK.

Portugal and Madeira have large expat populations. This group includes expats, retirees, and digital nomads. Many are buying holiday homes in Portugal to rent or use themselves.

Property ownership in Portugal and Madeira is open to non-citizens without restrictions, a major selling point for the two islands. The Golden Visa and Non-habitual residence policies encourage foreigners to invest in Portuguese real estate on the mainland and Madeira. With a Golden Visa, you may work, study, and travel in Portugal and the Schengen Area. After five years in Portugal, you can apply for citizenship via naturalization.

Market Overview

Cash buyers have a strong negotiation position in Madeira's inexpensive property market. In 2020's first phase ofCOVID-19, housing values soared, signaling a booming real estate market.

Funchal, Madeira's capital and largest city, became the most popular city for real estate purchase. With quick access to local facilities, a flourishing social culture, and a location 20 minutes from Madeira's airport, it's the obvious option for anyone wishing to invest in a property for an Alojamento Local company.

Long-term rental prices in Madeira in 2018 were EUR 5.15 per square meter, according to data produced by the Directorate of Statistics for RAM and the Portuguese National Statistics Institute. This was higher than the average rental price in Portugal proper, which was EUR 4.39 per square meter.

Madeira ranked second in Portugal for rental revenue, after Lisbon (€6.06 per m2) and ahead of Algarve (€5.00 perm2).

Madeira's average property price was €1,203 per square meter, whereas Algarve's was €1500 and Lisbon's was €1,318. Portugal averaged €984 per square meter in 2018.

In 2022, per-square-meter home prices rose substantially. These statistics reflect Madeira's year-round tourism and spring-like climate. Madeira was a 19th-century European royalty and aristocracy favorite, including Empress Sisi of Austria, Sir Winston Churchill, and Crown Princess Victoria of Sweden.

Prices for homes in Madeira rose by 20% from the first half of 2021 until June 2022, making the Island's capital the third most expensive place to purchase in the nation (at €2270 per square meter). In the countryside, Câmara de Lobos, Ponta do Sol, Santana, Calheta, and So Vicente, property prices rise.

Madeira's municipalities and civil parishes have different pricing structures. A real estate specialist can help you assess whether a home is priced appropriately. DRP Advisers has expertise in negotiating property sales around the Island, working with Portuguese residents and international purchasers.

Property Acquisition

Our professional agents will work with you to discover your perfect home or investment property in Madeira. We can assist with your migration to Madeira. Company Formation, Accounting, Tax and Business Consultation, Visa Applications, and Legal Services are our specialties. We can link you with reliable tradespeople, building firms, architects, and attorneys to simplify your Island relocation.

Is Madeira's housing market booming?

Many economists say Madeira has a real estate boom. Madeira's economic history suggests that real estate bubbles on the Island are vulnerable to a longer time lag than in other European nations and may take decades to bust.

Book you Real Estate Tour in Madeira with DRP Advisers

+351 912 585 085

renata@drpadvisers.com

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