Rental Costs in Madeira Rise by 15.7%
The cost of renting a home in Madeira has increased by 15.7% in March 2025 compared to the same month in 2024. This places Madeira among the regions in Portugal where rents have climbed the most, according to data from the real estate platform Idealista. The median rental price on the island now stands at €15.5/m², making it one of the most expensive locations in the country for tenants.
Funchal Sees 18.2% Increase Within 12 Months
Within Madeira, the capital city, Funchal, has seen some of the steepest increases in rental costs. Over the past 12 months, prices have gone up by 18.2%, surpassing the national average growth rate of 4.9%. At the end of March, the median price for renting in Funchal reached €15.9/m², placing it third in Portugal, behind only Lisbon (€22/m²) and Porto (€17.5/m²) and before Faro. Prices in Lisbon only grew by 2.0% and thus 9.1 times slower than in Funchal.
Rental prices have increased in all regions of the country, with the Autonomous Regions of the Azores (15.2%) and Madeira (15.2%) seeing the highest rises.
Could Funchal Become Portugal´s Most Expensive City?
With current growth rates, Funchal's property prices could exceed Lisbon's in about seven and a half years. Funchal's significantly higher yearly rise, 18.2% versus Lisbon's 2%, means the €6.1 per square meter gap is shrinking fast. Note that this is a trend-based calculation, things could turn out differently.
Madeira Among the Most Expensive Regions in Portugal
Madeira now ranks as the second most expensive region in Portugal for renters, with only the Lisbon Metropolitan Area having higher median rental prices. Across all Portuguese regions, rental costs rose in March 2025, with Madeira and the Azores both recording increases of 15.2% - the highest in the country. This trend highlights the ongoing housing challenges faced by residents, particularly those with lower incomes who are struggling to afford rising rents.
Source: Idealista
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