Funchal Real Estate Guide 2026

Overview

Major regional center with strong economic growth. Average prices: €4,316/m². 42% below Lisbon prices. 7.9% annual price growth.

Property Prices

• T0 tier — Average new build: €4,872/m²; Average resale: €3,364/m²
• T1 tier — Average new build: €4,410/m²; Average resale: €3,045/m²
• T2 tier — Average new build: €4,200/m²; Average resale: €2,900/m²
• T3 tier — Average new build: €3,780/m²; Average resale: €2,610/m²

Rental Yields

• T1 tier: 4.5%
• T2 tier: 4.0%
• T3 tier: 3.8%

Market Outlook

Annual price growth: 7.9% · Forecast: positive · up

Housing Stock

Area: Madeira · town · Investment category: standard · 48,000 apartments · 1,200 new units/year

Funchal

Character and Identity: An amphitheater city built on steep slopes facing the sea. Tropical, cosmopolitan, and rich.

National Role: Capital of Madeira, a leading cruise port.

Historical Development: A sugar trade center ('white gold') in the 15th century, and later in wine. British merchant families greatly influenced its character.

Interesting Facts: The New Year's Eve fireworks display in Funchal held the Guinness record as the largest in the world. Cristiano Ronaldo (a native of the city) is an almost divine figure here, and the airport is named after him.

Neighborhoods

São Martinho

São Martinho, a vibrant neighborhood in Funchal, Madeira, offers an alluring blend of modern living and traditional charm. Known for its stunning ocean views and lush landscapes, it attracts both locals and expatriates. The real estate market here is dynamic, with properties ranging from luxurious apartments to…

Ideal for international investors seeking stable rental yields and growth potential in a picturesque coastal setting. Suitable for those interested in luxury living with access to modern amenities and a vibrant…

€919,413 · €4,372/m² · 210m² · €2,339/mo · 3.1% · 69 listings

Sé

Sé, nestled in the heart of Funchal, Madeira, is a vibrant neighborhood steeped in history and culture. Known for its charming cobblestone streets and proximity to the majestic Funchal Cathedral, Sé attracts a diverse mix of locals and expatriates. The real estate market here is dynamic, with average sale prices around…

Ideal for discerning investors seeking a blend of cultural richness and modern living. Sé caters to those valuing premium real estate coupled with strong rental yields, particularly in T1 apartments.

€981,343 · €5,504/m² · 178m² · €1,953/mo · 2.4% · 39 listings

Santo António

Santo António in Funchal is a vibrant neighborhood known for its blend of traditional Madeiran charm and modern amenities. This area attracts a diverse mix of locals and expatriates, creating a dynamic community atmosphere. The real estate market here is thriving, with an average sale price of €455,444 and a price per…

Ideal for investors seeking stable rental income in a vibrant community. Perfect for those interested in diverse property options, from compact apartments to spacious homes, with a focus on high rental yields.

€455,444 · €3,308/m² · 138m² · €1,849/mo · 4.9% · 18 listings

Santa Maria Maior

Santa Maria Maior in Funchal offers a blend of historical charm and modern living, attracting both locals and international residents. Known for its picturesque streets and vibrant atmosphere, the neighborhood is a prime spot for real estate investments. With an average sale price of €1,125,470, the area appeals to…

Ideal for discerning investors seeking luxury properties with cultural allure and promising rental yields. Suitable for those appreciating historical charm mixed with modern amenities and a vibrant community.

€1,125,470 · €3,436/m² · 328m² · €1,640/mo · 1.7% · 17 listings

Santa Luzia

Santa Luzia in Funchal, Madeira, offers a unique blend of traditional charm and modern conveniences, attracting a diverse group of residents and investors. Known for its picturesque landscapes and vibrant community, the neighborhood boasts a dynamic real estate market with average sale prices reflecting both affordable…

Ideal for discerning investors seeking a blend of traditional charm and modern amenities, with a focus on long-term value appreciation. Suitable for professionals and families desiring a tranquil, yet vibrant…

€903,233 · €5,635/m² · 160m² · €1,597/mo · 2.1% · 15 listings

Imaculado Coração Maria

Imaculado Coração Maria in Funchal, Madeira, is a vibrant neighborhood attracting a dynamic mix of locals and expatriates. Known for its picturesque landscapes and serene environment, it combines traditional Portuguese charm with modern living. The real estate market here is buoyant, offering premium properties with an…

Ideal for seasoned investors seeking a combination of luxury and tradition. Attracts high-net-worth individuals interested in spacious properties with strong rental yields and long-term value in a picturesque setting.

€1,314,666 · €3,351/m² · 392m² · €1,437/mo · 1.3% · 9 listings

São Roque

São Roque, nestled in the picturesque hills of Funchal, offers a unique blend of tranquility and vibrancy, attracting a diverse community of both locals and expatriates. Known for its stunning views and lush landscapes, the neighborhood is a haven for those seeking a serene yet connected lifestyle. The real estate…

Ideal for discerning investors seeking a blend of lifestyle and returns, São Roque attracts those who value tranquility, scenic beauty, and a vibrant community. Suited for both long-term investment and personal…

€1,314,444 · €4,031/m² · 326m² · €2,433/mo · 2.2% · 9 listings

São Pedro

São Pedro in Funchal, Madeira, is a vibrant neighborhood blending traditional charm with modern sophistication. Known for its scenic views and rich history, it attracts both locals and expatriates. The real estate market here shows promising growth, with average sale prices reflecting strong demand and investment…

Ideal for investors seeking a vibrant neighborhood with a mix of historical charm and modern amenities, offering promising rental yields and long-term appreciation in a dynamic market.

€689,166 · €3,534/m² · 195m² · €2,280/mo · 4.0% · 9 listings

Monte

Monte, nestled in the hills of Funchal, Madeira, offers a serene escape with its lush greenery and panoramic views. Known for its tranquil atmosphere, Monte attracts both locals and international residents seeking peace and natural beauty. The real estate market here is characterized by spacious properties, with the…

Ideal for high-net-worth individuals seeking exclusive, spacious properties in a tranquil setting. Perfect for those valuing privacy, luxury, and long-term investment potential.

€653,750 · €186/m² · 3507m² · €0/mo · 0.0% · 8 listings

São Gonçalo

São Gonçalo in Funchal, Madeira, is a vibrant neighborhood known for its scenic views and tranquil living environment. It attracts a mix of locals and international residents seeking luxury with a community feel. The real estate market here is robust, with high-value properties averaging over €2 million. Investment…

Ideal for affluent investors seeking luxury properties with high potential for appreciation. Suitable for those valuing scenic beauty and a tranquil lifestyle, with access to premium amenities.

€2,012,621 · €4,747/m² · 424m² · €1,592/mo · 0.9% · 7 listings