Madeira Property Prices, Rents & Rental Yields

About Madeira

Madeira Island, Portugal combines Atlantic scenery, year-round mild weather and a compact island setting that keeps attention focused on its main coastal and urban centres. For apartment investors, that mix often means a market shaped by scarcity of well-positioned stock rather than sheer scale.

July 2026 points to a clear tension: capital values are edging higher even as rental income holds steady. The average apartment sale price sits at €460,000, unchanged from the previous month but up 2.2% year on year, while the average price per square metre has climbed to €4,040, rising 2.6% month on month and 6.7% over the year. That combination suggests the market is still repricing, even if the pace is uneven.

For income-focused investors, the rental side is more restrained. The average apartment rent is €1,600, with no monthly or annual change recorded, which keeps the gross yield at 4.6%. In practical terms, July’s figures imply that price growth is currently outpacing rent growth, tightening the spread between entry cost and income. For apartment buyers evaluating Madeira Island, Portugal, the monthly note is straightforward: values remain firm, but the rental line has not yet caught up.