A Luxurious Villa with an Astonishing Price Tag

Madeira's real estate market has been seeing rising prices in recent years, but this listing - posted on February 9 - currently arguably stands out as the most expensive rental property on the island - by far. A villa in Funchal is currently available for rent at 19,500 €/month. This price is almost three times as high as the second most expensive rental property in the area, which costs 7,500 €/month.

▶️ See the Villa on Idealista

The Expensive Price of Living in Madeira

The T9 villa covers 747m² and includes a large living room, an infinity pool overlooking the sea, and carefully maintained gardens. It also features a gym, a billiard room, and plenty of space for relaxation. The design of the house allows for breathtaking views of Funchal, the Atlantic Ocean, and the surrounding landscape. While this might be a perfect home for the wealthy, it highlights the growing issue of rising rents and properties that are out of reach for most.

Don’t Feel Like Renting? Buy it for €4.750.000

The owner also put the same villa online for sale. The different listing puts up an asking price of €4.750.000. That is a lot and a marketing , but the island has already seen more expensive properties. The marketing capitalization rate for a property priced at €4.75 million with a monthly rent of €19,500 is approximately 4.93%.

The Growing Divide Between Luxury and Affordability

As high-end properties become more common in Madeira, the pace at which this is happening has become worrying for many. For most locals, the growing cost of living makes it difficult to find affordable housing. In a time where the average job barely covers the rent for a T1 apartment, these developments lead to a more divided housing market and eventually a more divided society - with all the risks and dangers associated..

While there’s nothing inherently wrong with luxury real estate, a society must grow in a way that allows everyone to participate in development and share in the benefits of economic prosperity.

Source: Idealista.pt