A Year of Rapid Growth in Madeira's Housing Market
Home prices in Madeira experienced a significant increase of 13.6% in November 2023 compared to the same month in the previous year, according to data from the Idealista price index. The median cost of purchasing property in the region reached €3,223 /m² by the end of November. In a shorter three-month comparison, prices climbed by 3.5%, reflecting continued growth.
Santa Cruz and São Vicente Lead the Annual Gains
Within Madeira, several municipalities saw particularly sharp price increases over the past year. Santa Cruz recorded the highest growth at 21.4%, followed by São Vicente at 20% and Calheta at 16.5%. Funchal, the regional capital, registered an 11% increase, while Ribeira Brava, Câmara de Lobos, and Ponta do Sol experienced gains of 10.5%, 10.2%, and 9.1%, respectively.
Real-Estate Prices Expected to Keep Climbing in 2025
The market shows no signs of cooling, as a concerning real estate trend continues to impact society: limited housing supply, low interest rates, and high demand are likely to keep housing prices rising in 2025.
Tiny Houses: A Tiny Dream in Madeira's High-Priced Reality
Homeownership in Madeira has become a luxury for many. Tiny houses combine affordability with practicality and are likely a key piece in the puzzle of addressing Madeira's housing crisis.
Funchal Tops the List for Property Prices
Funchal remains the most expensive municipality in Madeira for homebuyers, with property costing an average of €3,505/m². It is closely followed by Calheta at €3,456/m². Other areas include Ponta do Sol (€2,757/m²), Ribeira Brava (€2,598/m²), and Câmara de Lobos (€2,492/m²).
Madeira's Growth Mirrors National Trends
Nationally, Portugal saw housing prices rise by 10% over the last 12 months, reaching an average of €2,783/m². The capital city, Lisbon, remains the priciest location in the country, with prices at €5,685/m². Porto (€3,692/m²) and Funchal (€3,505/m²) rank as the second and third most expensive cities. Other high-price areas include Faro (€3,204/m²) and Setúbal (€2,528/m²).
Source: JM-Madeira
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