Foreign Investment Should Not Be Limited, Says Miguel Albuquerque
The President of the Regional Government of Madeira, Miguel Albuquerque, has voiced his opposition to restricting foreign investment in the local housing market. Responding to concerns over rising property prices, Albuquerque stated on Tuesday that market intervention would be harmful. He argued that controlling house prices and restricting sales to foreigners would lead to economic disruptions and discourage investment in the region.
No, I am against that. I think the market has to function, and fortunately, it does. This socialist idea of controlling prices and the market always leads to state intervention, which creates market dysfunctions and harms everyone.
President Speaks Out to Build More Affordable Housing
During a visit to the Century 21 Garden real estate agency in Funchal, he emphasized that the solution should not be to halt the market but to increase the availability of affordable housing. He pointed to past initiatives, such as cooperative housing programs in the 1990s, as viable solutions and highlighted the government's ongoing investment of 128 million euros in accessible housing projects.
Affordable Housing Plans Delayed by Government Collapse
Albuquerque also revealed that two planned housing projects, including 220 units in the Tecnopolo area and over 50 units near APEL, had to be postponed due to the collapse of the national government and the rejection of the budget. These projects were part of a broader effort to provide homes at prices at least 30% lower than the market rate.
The regional government intends to continue investing in controlled-cost housing, ensuring that families have access to reasonably priced homes. Albuquerque reaffirmed that alternative measures, such as cooperative models and financial assistance for homebuyers, are also being considered.
Housing Prices Continue to Rise Across Portugal
Recent data from Imovirtual indicates that property prices in Madeira increased by 3% in the past month, reaching an average of 390,000 euros. Compared to February 2024, prices have risen by 20%. This trend reflects a nationwide increase, with Lisbon hitting an average of 580,000 euros and the Island of Faial experiencing a 77% increase.
Foreign Buyers Account for 40% of Transactions
According to Edgar Consuelo, commercial director at Century 21 Garden, around 40% of real estate transactions in Madeira currently involve foreign buyers, while 60% are domestic. He anticipates that this trend will continue, especially with the upcoming direct flights from the United States through United Airlines starting on June 8, which could attract more American investors.
Despite concerns about rising housing costs, Consuelo believes the market will remain strong, with continued demand from both local and international buyers.
Sources:
JM-Madeira
JM-Madeira
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