The Future of Real Estate in Madeira

If you’re considering investing in real estate you need to know the Madeira Island which has a promising future.

Apartments in MADEIRA for SALE

A little less than two hours’ flight from Lisbon, north of the Atlantic Ocean is Madeira Island, awarded as “Best Island Destination in the World” by the World Travel Awards, deposing the equally beautiful islands of Bali and Maldives. The island of Madeira is one of the few in the world that offers the excitement and vibrancy of life on an island and, at the same time, the bustle of a city on a continental territory.

It is in this duality between the excitement of life on a subtropical island and the urban bustle, that the island of Madeira finds its way to the real estate market, where investment opportunities can be divided into four categories, according to the different regions:

1. Funchal, capital of Madeira;
2. The Sunny South Coast;
3. North Coast;
4. Island of Porto Santo, the sister-island of Madeira.

Luxury Madeira Villa

Funchal, the capital of the island, is the place to be. The city is not only the main tourist center, but also the political, economic and academic center where all higher education institutions, including the University of Madeira, are located.   With a population of 105,795 inhabitants (data from 2021), Funchal is the main city of Madeira and has about 42% of the population of the entire archipelago.

Apartments in the city centre of Funchal

Given the population density, the real estate market of Funchal is home mostly to apartments and villas, leaving aside tourist developments whose sector has a strong influence on the economic development of the region.

Ocean view Apartments in Madeira

South Coast

The municipalities of Funchal, Ponta do Sol, Câmara dos Lobos, Ribeira Brava, Calheta and Porto Moniz are part of the South Coast of Madeira. Here, the real estate market is more popular than the North of the island. Rural properties are usually priced lower than a property in the city of Funchal, capital of Madeira.  The South Coast is one of the preferred areas of foreign buyers – the attractions are the city center, Casino area, tourist areas around Lido, Ajuda, São Martinho, The Madeira Forum, Madeira’s New Dubai. For those looking for charm and character of yesteryear, the historic center is what attracts the most.

North Coast

The North Coast of this magnificent island includes the municipalities of São Vicente, Santa Cruz and Machico. Here you will find modern villas, traditional stately homes, Madeiran Farms – inserted in nature or “hidden” in the city center.  Surrounded by beautiful gardens, centuries-old trees, lakes and modern swimming pools. This type of property has been favored by the Madeiran nobility, merchants and British people, since the eighteenth century.

Porto Santo

Porto Santo is the smallest inhabited island in the Madeira Archipelago with only 5,158 inhabitants (2021 data) having lost 5.9% of the population in the last decade. In contrast, in the same period the total number of accommodations increased by 2%, much due to the tourism, restaurant and hotel services sector, which is the economic activity depends on a large scale.

The Future of Real Estate in Madeira Island

Statistics show a positive evolution of 13% increase of the price per m² in March 2022, compared to the same period last year.

These values are supported on the fact that the Autonomous Region of Madeira is the only tourist destination in Portugal with a permanent spring climate.

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