German Documentary Highlights Housing Challenges in Madeira
A recent documentary by German broadcaster ZDF has brought attention to the increasing costs of living in Madeira, particularly housing. The program, titled "Glücklich auf der Insel?" (translated as "Happy on the Island?"), follows the lives of two young Germans, one who moved to Madeira after the pandemic and another who planned to do so. While Madeira has become a popular destination for remote workers, the documentary points out that the high cost of housing and living expenses are a real problem, even for Germans.
Since 2020, Madeira has been attracting freelancers from all over the world to live and work. However, daily life in the supposed paradise reveals that existential worries and loneliness exist there too.
Housing Costs Near German Levels in Some Areas
The documentary highlights a sharp rise in rental prices on the island, making housing a significant expense for both locals and newcomers. According to Diário de Notícias da Madeira who took a scientific approach to these numbers, in 2024, the average rent for a 60-square-meter apartment in Madeira reached €640, while in its capital, Funchal, the figure climbed to €762. This brings rents in Funchal close to those in major German cities such as Hamburg (€784) and Cologne (€790). For comparison, the average rent for a similar apartment across Portugal stood at €480.
Rental Prices Rise Faster in Madeira Than in Germany
Between 2020 and 2024, Madeira saw an 80% increase in average rental prices, with rents in Funchal rising by 88%. In contrast, German cities experienced more modest increases: Berlin (+47%), Cologne and Düsseldorf (+15%), Hamburg and Munich (+14%), Frankfurt (+12%), and Stuttgart (+11%). The stark contrast in rent hikes underscores the financial pressures faced by those moving to Madeira.
Wages in Madeira and Germany Tell a Different Story
While rents have risen dramatically, wage growth has not kept pace. In Germany, the minimum wage increased by 29% between 2020 and 2024, from €1,544 to €1,985. In Madeira, the minimum wage grew slightly faster, rising by 31% from €651 to €850. Despite this, the rent-to-income ratio in Madeira remains challenging, particularly for those earning average or minimum wages.
Source: Diário de Notícias da Madeira
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