Madeira Property Prices, Rents & Rental Yields

About Madeira

Madeira Island combines Atlantic scenery, mild weather and a limited island setting that gives its apartment market a distinctive long-term appeal. Around Funchal and the coast, the market often reflects that mix of lifestyle value and constrained space.

August 2026 brings the clearest signal: pricing momentum is mixed, with rents moving higher while purchase values stay broadly stable. The average apartment sale price holds at €460,000, unchanged month on month, while the average rent has climbed 3.1% to €1,650. That combination keeps attention on income rather than just entry price.

The tension is sharper when viewed through the unit-price lens. The average €3,970 per m2 is down 1.7% from the previous month, yet still up 2.2% year on year, matching the annual increase in the average sale price. In other words, headline pricing has risen modestly over 12 months, but the latest monthly move suggests some easing at the square-metre level. With a yield of 4.7%, apartments on Madeira Island continue to offer a steady income profile, though the current setup leaves less room for investors to rely on capital growth alone.