Increase in demand for luxury homes in Madeira from Germans, Brits and Americans

Luxury house prices in Madeira increased by 41% in May – an increase driven by the demand for properties in this segment from international investors looking for the region’s beauty, security and warm all-year-round climate.

And prices are up by as much as 90% YoY in some cases in Madeira’s capital Funchal with the average price of a luxury villa or apartment at €1.6 million or over.

This is according to the spokesperson for the online estate agency idealista, Ruben Marques who adds that limits on supply in this segment in premium areas is also driving house prices.

This compares with luxury properties on the Azores island of São Miguel’s capital Ponta Delgado where properties are being sold from €885,000.

The purchase of luxury properties in the Autonomous Region of Madeira can be considered an investment opportunity, with potential for appreciation and return.

At the national level, the prices of the most expensive houses increased by 17%, which means that houses in the 90th percentile are starting to be sold for €995,000.

Among the houses with prices above €1 million, in addition to Funchal, are Lisbon (€1.547 million), Faro (€1.5 million) and Porto (€1 million).