Madeira Property Investment Guide

Introduction

Madeira, an archipelago situated off the northwest coast of Africa, is an autonomous region of Portugal known for its stunning landscapes, subtropical climate, and rich cultural heritage. Over the past decade, it has gained popularity among international investors and expatriates looking for both residential and investment opportunities, particularly in the real estate sector.

Overview

Regulations

Foreign investors can purchase property in Madeira without restrictions. The Golden Visa program offers residency to non-EU investors purchasing real estate valued at €500,000 or more, or €350,000 for properties requiring renovation.

💡 Investment Opportunities

Renovation opportunities abound in Madeira, with many older properties in need of restoration. Investors can achieve significant ROI by transforming these properties into vacation rentals or upscale residences. Properties that are well-located and restored to modern standards can yield rental returns of 5% to 10%.

Key Areas

Funchal

The capital city is the economic and cultural heart of Madeira, with a vibrant real estate market. Funchal offers a variety of properties, from modern apartments to historic buildings.

€2,000 - €3,500 per square meter

Caniço

A coastal town just east of Funchal, Caniço is known for its picturesque views and popular diving spots. It's an attractive area for families and retirees.

€1,500 - €2,500 per square meter

Santa Cruz

Located near the airport, Santa Cruz has seen recent development and offers a mix of residential and commercial properties. It's a great location for investment due to its accessibility.

€1,300 - €2,200 per square meter

Ponta do Sol

This charming village is known for its stunning sunsets and scenic coastal views. Ponta do Sol attracts tourists and investors looking for serene environments.

€1,200 - €2,000 per square meter

Conclusion

Investing in Madeira presents a unique opportunity for real estate investors, especially those interested in renovation projects. The combination of a strong rental market, favorable investment conditions, and a high quality of life makes Madeira a compelling choice for both personal residence and investment. With the right strategy and understanding of the local market, investors can achieve substantial returns on their property investments.