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, and one of the unique regions on the planet that closed from 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? Of course, this is Madeira, an island that is part of Portugal and is an autonomous region, which can be easily reached from Porto and Lisbon in just over an hour.
We believe now is the perfect time to buy property in Madeira for living and investment. However, why can it be profitable right now, and how are things going with the cost of plots, apartments, and houses in Madeira in the summer 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 July 2022.
A couple of reasons to buy property in Madeira 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, but people who say this have most likely never wintered in the continental part of the country. Winter in Portugal is freezing and humid, both in the north and in Lisbon and the Algarve. This fact is very well known to immigrants in Portugal. Swimming in warm water on the beach in the same 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" by accident. Neither in mainland Portugal nor the whole of Europe will you find another place with such a favorable climate throughout the year. That's why to buy property on Madeira means to buy a house in a place where the weather is always good.
- Madeira is a unique place in the world, open to tourists and foreigners.
While many countries closed their borders and banned foreign tourists from entering their territory, introducing more severe quarantine measures, the global pandemic 2020-2022 almost did not affect Madeira, and the island had relatively mild restrictions. At the same time, in 2021, the island made its position clear when the Madeiran government announced that the island is open to tourists from all over the world, who do not need to be vaccinated or quarantined but show negative tests, which in many cases for a tourist will be free and 100% government-sponsored.
- 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 in detail here 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 precisely because of the enormous flow of foreigners visiting Madeira every year. What is not an ideal place for a profitable investment?
Do you want to buy a property in Madeira in the summer of 2022?
Suppose you decide to buy a house or apartment in Portugal. In that case, we recommend that you constantly monitor current offers on the following most popular sites in the country for finding and selling real estate:
We will use these sites when analyzing the real estate market on the island of Madeira, which you will get acquainted with in this article.
Suppose you do not 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 realtors in Madeira, which you can find without leaving our website WithPortugal.
Real estate prices in Madeira in July 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 essential to understand the current state of the market and price dynamics in a particular region of the country.
Above, we have listed the main advantages of buying a property in Madeira in 2022. Still, to evaluate the profitability of such a purchase or investment, it is crucial 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 an extraordinarily convenient and understandable Idealista website tool. This tool allows us to track the dynamics of real estate prices and understand how much one sq. meter is 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 summer of 2022, the cost of one square meter in the autonomous region is 2,153 euros, while this value is + 20.5% higher than in the summer of last year. For example, in January 2015, i.e., just six years ago, one square meter on the island cost about 1,191 euros. This is a striking difference compared to current prices. This analysis shows that the prices for real estate in Madeira grow tremendously, increasing yearly by more than 10-20%. 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 five years has only grown, and, the last two years, with the problematic situation in the tourism sector due to the pandemic, did not 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 summer of 2022.
Cheap real estate in Madeira in the summer of 2022
Let's start our search with the cheapest real estate options on the island because, as you know, the price is a determining factor for many people. With the help of the familiar Idealista website tool, we can sort the list of areas where real estate prices are the lowest. You can see the list of the cheapest places on the island of Madeira in the picture below.
Let's go through this list and see what offers in these areas can be found on sites for finding and selling real estate.
Starting from 15,000, you can find many options for building land or ruined houses for restoration.
The photo below shows an example of a building plot with ocean views in the area of Câmara de Lobos, with an area of 345 m² and a cost of 18,000 euros.
Below you can see a truly unique property, a traditional Portuguese house from Santana to be restored, which could be an excellent rental investment for tourists who are not looking for typical hotels, but a local unique living experience. You can buy such a house for restoration with an area of almost 900 m² for 47,500 euros.
Madeira is a paradise for those not afraid to buy a home 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, from which 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 a non-land plot or ruins for restoration, when looking for the most inexpensive options, we will need to look for small apartments on the island. As of July 2022, the cheapest apartment on the entire peninsula costs about 65,000 euros. So, for example, in the photo below, you can see an example of a small apartment in Ponta Delgada with one bedroom and one hall, in good condition, with an area of 54 sq. meters and cost 65,000 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 fogs and rains. So if you are looking for cheap 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 in which no significant repairs are needed, then we will have to pay for it from 70-80 thousand euros and more. In the example below, you can see a private two-bedroom house in good condition and an inexpensive area of Santana Island with a house area of 73 square meters and a small adjacent territory, costing 75,000 euros. This home will need some cosmetic work, and if you are looking for affordable real estate in Madeira, look no further than the Santana area.
If you want to buy a renovated house with a new renovation, then the cost of real estate will gradually increase and, on average, will start from 110-150 thousand euros. For example, in the photo below, you can see an example of a private house with a modern renovation, which for some reason the owners could not finish, with an area of 77 m², with two bedrooms and one hall, worth 115,000 euros. Yes, cosmetic repairs in this house will still need to be completed, but if you want to buy a home in perfect condition with a fresh renovation, then, in this case, its cost will start from 150 thousand euros.
And now, we offer to estimate 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 the summer of 2022
Suppose you do not want to live in a sparsely populated area of an already 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.
By searching inside the city limits, you can see that starting from 100,000 euros, various real estate options appear. Usually, these are studios with a minimal area or apartments of old stock which must be renovated. The photo below shows an example of an old apartment with an area of 71 sq. meters, costing 95,000 euros. This apartment needs to be renovated and is not located in the center of Funchal.
If you want to buy a more modern apartment, with a new renovation or with a condominium that has access to the pool and other benefits, then the cost of flats in Funchal will start from 120,000 euros. Below we can see an example of a studio apartment with a new renovation and furniture, with an area of 36 sq. meters, costing 120,000 euros. In addition, this property has access to a pool, sauna, and gym in a private condominium.
If we are looking for an apartment with two bedrooms and one hall in the historical center of Funchal, then, in this case, the prices will start from 160 thousand euros. So, in the photo below, we can see just such an apartment with an area of 77 square meters and cost 165,000 euros.
If you are not looking for an apartment, but a private house, then in Funchal, the prices for homes in good condition that do not need significant repairs will start at 120,000 euros. So, in the photo below we can see an example of a private house in Funchal in excellent condition with one bedroom and one hall, with an area of 72 sq. meters and cost 120,000 euros. At the same time, of course, for such a price, the house is not located in the capital's historical center, but within the boundaries of Funchal.
Luxury housing in Madeira in the summer of 2022
If the cost of real estate is not a determining factor for you, then we offer to analyze the most expensive real estate in Madeira in the summer of 2022. But, first, let's see the most expensive housing currently within the island's capital and beyond.
With the help of the familiar Idealista website tool, we can sort the list of areas where real estate prices are the highest. You can see the list of the most expensive places on the island in the picture below. It is not surprising that real estate is most costly in Funchal, where the price per square meter reaches 2,385 euros.
The most expensive house in Madeira is a luxurious villa built on the site of an old manor. This house has six bedrooms, a vast swimming pool, and a garden with terraces with a total area of 5,560 meters. The cost of the object is 3,500,000 euros. This house is located 5 minutes from the island's capital, the city of Funchal.
Well, in my opinion, an excellent option for those not limited in finances. However, in fairness, we note that the most expensive property in Madeira costs at least two times cheaper than the most expensive villa in Lisbon.
At the same time, one of the most expensive apartments in Madeira is a 4-bedroom penthouse with a private pool in a luxury condominium. The total area of this facility is almost 505 square meters, and the cost is 1,800,000 euros. This apartment is located near the center of Funchal.
At the same time, there are many options for lofts, penthouses, and other types of luxury real estate with a cost of around 1 million euros directly within Funchal, while many of the objects are under construction. Below you can see an example of a luxury apartment in Funchal, with four bedrooms, a total area of 200 sq. meters, and cost 1,000,000 euros. The owners of this apartment will be able to use the private pool on the roof of the building for residents of the condominium. It is also interesting that the text of the ad states that payment for this object can be made 100% in cryptocurrency.
With a budget of 500,000 euros, apartments with 2 or 3 bedrooms, excellent renovation, and location will already be available. Furthermore, 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 in the heart of Funchal with two bedrooms, an area of 107 sq. meters, and cost 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 photo below shows an example of an apartment with two bedrooms and newly renovated in the center of Funchal, with an area of 95 sq. meters and cost 250,000 euros.
How much money do you need to buy a home in Madeira in the summer of 2022?
The answer to this question will depend solely on your budget and preferences for the quality of housing, its location, etc. As part of this article, we briefly overview the real estate market in Madeira. We concluded that a plot or even a house could be bought already for 20-40 thousand euros if you are ready to restore it or make a significant overhaul. Apartments and houses in good condition can be found already, starting from 70,000 - 100,000 euros, and the maximum level of real estate prices in Madeira at the moment is more than three million euros for a luxurious private house, which will be of particular interest to those who plan to purchase luxury real estate in Portugal.
One thing is for sure - the cost of real estate in Madeira, both in the premium and in the middle segment, is several times lower than the cost of houses and apartments in the Lisbon region.
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 even before prices on the island skyrocket, as they already did in Lisbon a few years ago. However, no matter your budget, you can always find the property that suits you, whether you are buying property as your primary residence or as an investment.
In case you want to enlist the support of real estate professionals, we recommend that you seek help from our realtors in Madeira, who will help in such an important and responsible matter as the acquisition of real estate on the island. Suppose you are dreaming of a home or apartment in Madeira, or even looking to build your own home from scratch. In that case, Lilia and Carlos will become your guides at all stages, from choosing a land plot, house, or apartment, hiring contractors, and up to the complete construction of the house structure or signing documents for an already finished object.
We wish you good luck choosing the right property for you, and we are waiting for you in Portugal!