An island of eternal spring lost in the Atlantic Ocean. A place where you can drive from a beach with warm water to snow-capped mountain peaks in less than an hour. An area where overseas fruits and flowers grow all year round. One of the unique regions on the planet that wasn't closed to tourists from all over the world in 2020-2022, unlike many other countries that applied the most severe measures during the pandemic. Have you already guessed what this place is? Sure, this is Madeira, an island part of Portugal and an autonomous region, which can be easily reached from Porto and Lisbon in just over an hour.
In our opinion, now is a perfect time to buy property in Madeira, both for living and investment. However, why can it be profitable right now? Furthermore, how are things going with the cost of plots, apartments, and houses in Madeira in the fall of 2022? In this article, we will answer all these questions and give a brief overview of prices for various categories of real estate in Madeira in October 2022.
A few reasons to buy property in Madeira in 2022
Suppose you have never heard of the island of Madeira before. This material will help you better understand whether the island is right for you or not. In any case, even if you don't want to immigrate to Madeira to live here permanently, you can consider buying a holiday home or investment property. Here are a few reasons to do so in 2022:
Madeira is a unique place with the most favorable climate in Europe
It is common to hear that the weather in Portugal is beautiful. Still, people who say this have most likely never wintered on the continental part of the country. Winter in Portugal is icy and humid, both in the north, in Lisbon, and in the Algarve. This fact is very well known to immigrants in Portugal. Swimming in warm water on the beach in Algarve in winter is out of the question. All this does not apply to the island of Madeira, which is often called "the island of eternal spring". Both the water and air temperatures rarely fall below 18-19 degrees, even in winter. Neither in continental Portugal nor the whole of Europe will you not find another place with such a favorable climate throughout the year. That is why buying a property on Madeira means buying a home in a place where the weather is always fine.
- Madeira is a unique place in the world, open to tourists and foreigners
While many countries closed their borders and prohibited foreign tourists from entering their territory, orienting more and more severe quarantine measures, the global pandemic 2020-2022 almost did not affect Madeira. On the contrary, the island had relatively mild restrictions, which shows the position of the island's government. And that may be important in choosing a place for permanent residence.
- Madeira is an international island open to freelancers and entrepreneurs
In addition to being open to tourists from all over the world, Madeira has taken a more progressive step by creating programs aimed at freelancers, digital nomads, and international investors. One of these projects is "Digital Nomads Madeira Islands", which we wrote about in detail in this article for freelancers. In Ponta do Sol, a whole village was created with all the necessary infrastructure for remote work and life on the island. At the same time, freelancers worldwide can access free office space and other bonuses of life and remote work on the island. This is just one of the initiatives on the island for foreigners. Every year there will be more and more such programs because the government of Madeira demonstrates the seriousness of its intentions to attract foreign entrepreneurs and freelancers from all over the world. Almost all locals on the island speak English because of the massive flow of foreigners visiting Madeira every year. Why not an ideal place for a profitable investment?
Do you want to buy a property in Madeira in autumn 2022?
If you decide to buy a house or apartment in Portugal on your own, we recommend that you constantly monitor current offers on the following most popular websites in the country for finding and selling real estate:
We will use these websites when analyzing the real estate market on the island of Madeira, which you will get acquainted with in this article.
Suppose you don't want to delve into and understand the nuances of the Portuguese real estate market. In that case, you can always simplify your life by contacting professional real estate agents in Madeira. You can find them without leaving our WithPortugal website.
Real estate prices in Madeira in October 2022
Whether you are looking for and buying property in Portugal on your own or with the help of a real estate agent, it is always important to understand the current situation in the market and price dynamics in a particular region of the country.
We have already listed the main advantages of buying a property in Madeira in 2022 above. But to evaluate the profitability of such a purchase or investment, it is essential to understand the current situation in the Madeira market and price dynamics.
To understand what is currently happening with the price level for houses and apartments on the island, let's use the highly convenient and understandable tool of the Idealista website. This tool allows us to track the dynamics of real estate prices and understand the average cost of 1 sq. m. meter in a particular city or region in Portugal. At the same time, as part of our analysis, we will consider not a single city but the entire autonomous region of Madeira.
Using this tool to analyze prices on the island, we see that in the autumn of 2022, the cost of one square meter is 2,302 euros in the autonomous region. At the same time, this value is +22.2% higher than last year's autumn. For example, in January 2015, just 6 years ago, one square meter on the island cost about 1,191 euros. This is a remarkable difference compared to current prices. This analysis shows that real estate prices in Madeira are growing tremendously, increasing by more than 10-20% year on year. Based on this, we can conclude that it is better to invest in buying real estate on the island right now, without putting it off indefinitely and without waiting for the maximum price level, which the island will surely reach in a few years.
As we can see in the chart above, the level of real estate prices in Madeira over the past 5 years has only grown, and in fact, even in the last 2 years, with the problematic situation in the tourism sector due to the pandemic, it didn't stop this growth, but only slightly slowed it down. Today, within the framework of this article, we will try to find the best options for buying a house or apartment in Madeira in the autumn of 2022.
Cheap real estate in Madeira in autumn 2022
Let's start our search with the cheapest real estate options on the island because, as you know, the price is a determining aspect for many people. Then, using the already acquainted tool of the Idealista website, we can compose the list of areas where real estate prices are the lowest. You can see the list of the cheapest areas on the island of Madeira in the picture below.
Well, let's go through this list and see what offers in these areas can be found on websites for finding and selling real estate.
Starting from 20,000, you can find many options for building land or ruined houses for restoration.
The picture below shows an example of ruins to be restored on a 285 m² plot worth 20,000 euros.
Below you can see a house in reasonably good condition, with 2 bedrooms, a total area of 25 sq. meters and cost 55,000 euros. Please note that it is impossible to drive up to this house by car, but only walk along a small path. This is a fairly common situation on the island, so if it is important for you that a car (even an ambulance or fire department) could drive up to your house, carefully look through the ads and ask real estate agents about this nuance before visiting the objects.
In general, Madeira is a paradise for those who are not afraid to buy a house to restore or dream of building a new home from scratch. There are a lot of unique land plots and abandoned ruins on the island, where you can make a dream home, spending the necessary time, effort, and money. So if you are not afraid of building a house from scratch or its reconstruction, then pay attention to Madeira as a unique place to create such a heavenly house.
At the same time, if you want to buy not a land plot or ruins for restoration, then when looking for the most inexpensive options, we will need to look for small apartments on the island. As of October 2022, the cheapest apartment on the entire island costs 75,000 euros. The picture below shows an example of a small apartment in Santana with 2 bedrooms and 1 hall, in good condition, with an area of 73 sq. meters, and cost 75,000 euros.
It is no coincidence that this object is located in the island's northern part because the most expensive real estate is usually located in the southern (lower) part of the island. As the locals say, there is much more sun, and the weather is much better than in the northern region, where there are more fog and rain. So if you are looking for inexpensive real estate on the island, then, first of all, search in its northern (upper) part.
If, instead of an apartment, we want to buy a house on the island in good condition, ready to move in, and where no significant repairs are needed, then we will have to pay 90 thousand euros and more for it. In the example below, you can see a well-maintained 2-bedroom house near Funchal with a house area of 90 sqm. meters with a small adjacent territory and the cost of 90,000 euros. This house will need some cosmetic repairs, but it won't have to be rebuilt from ruins.
If you want to buy a renovated house with a new renovation, then the cost of real estate, in this case, will start from 140 thousand euros. For example, in the photo below, you can see an example of a private house in Funchal with reasonably good repair, with an area of 48 m², with two bedrooms and one hall, and a cost of 140,000 euros.
Current trends in the real estate market in Madeira
Compared to our previous price reviews for Madeira, there is a fairly sharp increase in prices and a decrease in the number of properties for sale in the autumn of 2022. You can consult real estate agents on the island about the reasons for this situation, but remember that, in general, the Madeira market is extremely specific because this is a famous island, and prices are constantly growing. Still, the number of houses and apartments for sale does not increase much.
And now, we offer to calculate the cost of apartments and houses directly within the city of Funchal, which is the autonomous region's capital.
The cost of real estate in Funchal in autumn 2022
Suppose you don't want to live in a sparsely populated area on a small island. In that case, you will most likely be better off looking for apartments or houses directly in Funchal, the capital of Madeira. Funchal has a more developed infrastructure, shopping centers, bars, and numerous restaurants. Let's analyze the current offers on the market to understand how much an apartment or a house can cost us directly in the capital of Madeira.
Searching inside the city limits shows that various real estate options appear starting from 120,000 euros. Usually, these are studios with a minimal area or apartments of an old stock that will have to be renovated. For example, in the picture below, you can see an example of a studio with an area of 40 sq. meters and a cost of 120,000 euros. This apartment is located in a hotel-type complex, which has indoor and outdoor pools, as well as other infrastructure.
If you want to buy an apartment with a larger area and several bedrooms, then you can search in Funchal's sleeping areas, not in its center. So, in the example below, we see an apartment in the São Gonçalo area with 3 bedrooms and 1 hall for 127,000 euros. Yes, this apartment will need cosmetic repairs, which is fully compensated by the area of this object of 92 square meters.
If we are looking for an apartment with 2 bedrooms and 1 hall in the historic center of Funchal, then, in this case, the prices will start from 160 thousand euros. So, in the picture below, we can see just such an apartment with an area of 84 square meters, a garage, and a cost of 188,000 euros.
If you are not looking for an apartment, but a private house, then in Funchal, the prices for houses in good condition that don't need major repairs will start at 130,000 euros. So, in the picture below, we can see an example of a private house in Funchal in excellent condition with 2 bedrooms and 1 hall, with an area of 110 sq. meters, and cost 135,000 euros. At the same time, given its cost, the house is not located in the capital's historic center. Nevertheless, it is located within the boundaries of Funchal.
Luxury housing in Madeira in autumn 2022
Suppose the cost of real estate is not a determining factor for you. In that case, we offer to analyze the most expensive real estate in Madeira in the autumn of 2022. First, let's see what is currently the most expensive housing, both within the island's capital and beyond.
Using the already acquainted Idealista tool, we can sort out the list of areas where real estate prices are the highest. You can see the list of the most expensive areas within the island in the picture below. It is not surprising that real estate is the most expensive in Funchal, where the price per square meter reaches 2,552 euros.
Currently, the most expensive house in Madeira is a luxury villa worth 3,600,000 euros. Since this property is still under construction, we decided to show you another already-built villa with a private pool, three bedrooms, an area of 360 square meters, and a cost of 2,300,000 euros.
At the same time, one of the most expensive apartments in Madeira is an apartment with 2 bedrooms and a pool in a luxury condominium. The total area of this facility is almost 440 square meters, and the cost is 3,300,000 euros. This apartment is located in the heart of Funchal.
At the same time, the island has a lot of options for lofts, penthouses, and other types of luxury real estate with a cost of about 1 million euros, while many of the properties are under construction. Below you can see an example of a luxury apartment near Funchal, with 3 bedrooms, a total area of 147 sq. meters, a private pool on its own terrace, and costing 1,000,000 euros.
With a budget of 500,000 euros, apartments with 2 or 3 bedrooms, with excellent renovation and location, will be available to you. With such a budget, you can choose apartments both in the center of Funchal and on the coastline. In the example below, you can see a modern apartment under construction near Funchal with 2 bedrooms, an area of 107 sq. meters, and a cost of 500,000 euros.
With a budget of 250,000 euros, you will have access to luxury apartments with several bedrooms, not in the capital. Or apartments with one or two bedrooms, but directly in Funchal. At the same time, many objects are under construction, which can be a good investment. The picture below shows an example of a 2-bedroom apartment, newly renovated in the center of Ribeira Brava, with an area of 98 sq. meters and cost 250,000 euros.
How much money do you need to buy a home in Madeira in autumn 2022?
The answer to this question will depend only on your budget and preferences for the quality of housing, its location, etc. As part of this article, we performed a brief overview of the real estate market on the island of Madeira. We concluded that a plot or even a house could be bought for 20-40 thousand euros if you are ready to restore it or make a significant repair. Apartments and houses in good condition can be found starting from 70,000 - 100,000 euros. The maximum price for real estate in Madeira is more than three and a half million euros for a luxurious private house. That will particularly interest those who are going to buy luxury real estate in Portugal.
One thing is for sure - the cost of real estate in Madeira, both in the premium and middle segment, is several times lower than the cost of houses and apartments in the Lisbon region. We wrote about that in detail in this article about real estate prices in Lisbon.
So if you are interested in buying property on the island of "eternal spring", this is a great chance to buy a house or apartment in Madeira before prices increase, as it happened in Lisbon a few years ago. However, no matter your budget, you can always find the property that suits you, whether you are buying the property as your primary residence or as an investment.
Suppose you want to enlist the support of real estate professionals. In that case, we recommend that you seek the help of our real estate agents in Madeira, who will help in such an important and responsible matter as the purchase of real estate on the island. Whether you dream of a home or apartment in Madeira or even want to build your own home from scratch, Lilia and Carlos will guide you through every step. From choosing a plot, house, or apartment, hiring contractors, completing the house's construction, or signing papers for an already finished object.
We wish you good luck choosing the right property, and we are waiting for you in Portugal!
