Funchal Property Prices, Rents & Rental Yields

About Funchal

Funchal sits between Madeira’s steep hills and the Atlantic, with a waterfront setting and a compact urban core. For apartment investors, its position as the island’s capital is inseparable from its hillside geography and coastal location.

In October 2026, the clearest signal for Funchal apartments is the divergence between sale and rental prices: average sale prices fell 2.8% month on month, while average rents rose 6.1%. That contrast matters more than either movement alone. It suggests that rental income improved relative to the headline cost of entry during the month, though individual apartments may have followed different paths. The average apartment sale price stands at €520,000, so the monthly decline should not be mistaken for a wholesale reset in pricing.

The reported yield is 4.42%, a useful reference point but not a substitute for assessing a particular property. A rise in average rent can strengthen the income case on paper, yet the quoted yield does not account for the costs or circumstances of a specific investment. Equally, a fall in the average sale price does not mean every apartment has become cheaper. The grounded reading is that the two pricing measures moved in opposite directions this month. Investors comparing apartments in Funchal can use that contrast as a starting point, while treating the yield as a snapshot rather than a forecast of returns.