Buying a property in Madeira
Portugal’s “island of eternal spring”, Madeira is set in the Atlantic not far from Spain’s Canary Islands. It rises out of the ocean as lush, green mountains, which the Portuguese have tamed with incredible infrastructure including an airport on stilts and ‘levadas’, channels which bring cool mountain water to the city.
Half the population live in Funchal. It’s a supremely friendly and liveable city that is popular with cruise liners but never feels overcrowded. Mercado dos Lavradores (Farmer’s Market) is a centrepiece of hustle and bustle.
Winston Churchill used to stay at the Reid’s Palace Hotel in Funchal and the city is still popular with expats and ‘digital nomads’.
Madeira boasts near year-round sunshine and warm temperatures, but the cooling breeze of the Atlantic means that it is rarely too hot (and if it does you can always pop up to the mountains).
Why buy a property in Madeira
Madeira is primarily known as a winter sun destination, but you can enjoy life here all year.
Property buyers in Madeira have a choice of city or seaside villages, or a property in the mountains.
Buying property in Madeira is ideal for those keen to lead an outdoorsy lifestyle. For hikers, highlights include the Pico de Areeiro (at a staggering 1,818 metres) and the Laurisilva of Madeira, a huge and ancient laurel forest. The island of eternal spring also has incredible birdlife and flora.
This is not a sandy sort of coast, but there are beaches, such as Riberia Brava Beach, Praia de Vigário and Praia do Porto do Sexial. On the west coast, Calheta Beach has golden sands (imported from Morocco). But you don’t necessarily need a beach, because many of the seaside resorts and hotels have created swimming areas, making the rocky coast not just accessible, but clean and with drinks served!
But it’s also a place for a happy and relaxing retirement in the sun. From the coast you will see dolphins playing in the bow waves of boats, and you can pop out for a whale-watching expedition, diving and snorkelling. There are two 18-hole golf courses and smaller ones dotted around the island.
The island has a superb events calendar, with highlights including: the colourful carnival, flower festival and wine festival. Wine and rum are locally produced in Madeira.
The weather in Madeira
A summer day in Madeira will typically be 25°C with up to eight hours of sun and little rain. Spring and autumn both see five to seven hours of sun and temperatures in the 20s, though autumn is rainier than spring. In winter, temperatures are between 18°C and 20°C with five hours of sunshine. Rain tends to appear in short, heavy downpours rather than extended periods of drizzle.
How to get to Madeira
Madeira’s international airport is named after its most famous son, Cristiano Ronaldo International Airport. It has regular flights to Lisbon, London and the rest of Europe throughout the year. If you want to fly further, you will need to get a connecting flight from a major European airport.
Madeira and its sister island Porto Santa are connected by a two hour and a half ferry ride.
How to get around Madeira
At its widest, Madeira is just 100 kilometres across. Although it has superb roads, with tunnels and high bridges, some drivers might find Madeira’s roads a little scary. If you don’t want to drive, Madeira has an extensive taxi service, bus network and a cable car.
Where to buy in Madeira
According to the official statistics site of Madeira, Estatistica Madeira, in 2021, the foreign population reached a record high of 10,405. The highest proportion of foreign nationals are Venezuelan (22%), British (12%) and German (8%).
Funchal is the most populated area with 50% of the total region population living there. The capital is a popular choice among younger professionals.
Santa Cruz is another desirable location. It is on the east coast, and home to the airport, with lovely beaches, gardens and a natural reserve. On the west coast, Calheta is a resort town that suits many international buyers. Santana is a brilliant rural spot, known for its distinct wooden triangle shaped houses with thatched roofs. Câmara de Lobos is a delightful fishing village close to Funchal.
Is a property in Madeira a good investment?
Madeira is one of Portugal’s most-visited regions, welcoming 1.5 million tourists per year. The island is popular with Portuguese mainlanders, likely owning to its more consistent sunny weather. The second highest number to visit were Britons.
It also benefits from a year-round season, so renting out a holiday home in Madeira can be successful.
For long-term capital growth, islands tend to do well. Island life always has an appeal and supply of homes – especially in Portugal with its strong environmental protections – will always be limited, keeping prices high. Moreover, Madeira is Portugal’s only real option for island buying, unlike Spain which has a choice of 10 islands.
And if global warming worsens, the cooling Atlantic breezes will make Madeira an ever popular longer-term option.
What can you get for your budget in Madeira
Property is more affordable in Madeira than the Algarve. You can buy a renovation property for €50,000. With a budget of €150,000, you could either buy a small apartment or a renovated, traditional Madeiran property.
For a more modern family villa, you’ll need at least €250,000. You would need double amount for an equivalent villa in the Algarve. For those with a larger budget, Maderia has beautiful stately four-bedroom-plus villas. While there are some contemporary homes for sale, Madeira does not have a vast range of new-build properties for sale.
Steps to buy a property in Madeira
It’s best to be methodical and see buying property in Madeira as simple set of steps, none of which is particularly difficult. Before you know it you can own your own home in Madeira!
- Set a budget: Work out how much you have to spend. Read our guide, How to pay for a Portuguese property to see your options. Speak to Smart Currency Exchange about exchange rates and international payments. Get a mortgage approval in principle if required. Remember to allow for buying costs.
- Do you research: Research the best areas around Madeira to buy for your particular budget, lifestyle, needs and interests. If aiming to move to Madeira full time, connect with an independent lawyer to discuss your residency and visa options. If hoping to rent a property out, check if this is legally possible.
- Online search: Once you know how much you have to spend in euros, you can start browsing available homes for sale in Madeira. Check out the appeal of different locations. Explore the area on Google Earth too, which will help you get an idea of the area. Make some enquiries on properties for sale in Madeira at Your Overseas Home. This will open a dialogue with recommended, English-speaking estate agents in Madeira.
- Book a viewing trip: When you have narrowed your online list as far as it will go, speak to an estate agent and book your trip to Madeira.
- Make an offer: When you’ve found a property you like, make an offer via your estate agent.
- Reservation contract & deposit: Once accepted, you may be asked to sign a reservation contract (Contrato de Promessa de Compra e Venda) and pay a deposit. Before you pay the deposit, we recommend speaking to a currency specialist who can help you lock in the rate for the duration of your property purchase, to avoid it fluctuating with the markets. The deposit is usually around 20% of the purchase price.
- Completion: This will be at the notary’s office (or by your lawyer via power of attorney), probably two months or so later. Congratulations, you now own a property in Madeira.
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