Why Madeira Continues to Attract Property Buyers in 2026
FASP
Why Madeira Continues to Attract Property Buyers in 2026
Madeira has long attracted visitors with its climate, nature and quality of life. Today, however, more people are looking beyond a holiday on the island and considering Madeira as a place to live, own a second home or invest in property.
The island's growing international community, strong property values and increasing global visibility all point to one thing: Madeira is becoming much more than a holiday destination.
A growing international community
One of the clearest changes in Madeira in recent years has been the growth of its international population.
At the end of 2025, 19,371 foreign nationals were living in Madeira, compared with just 7,423 in 2021. That represents an increase of 161% in four years. Foreign residents now make up 7.3% of Madeira's total population.
Funchal has the largest international community, but areas such as Calheta, Santa Cruz and Ponta do Sol are also attracting residents from abroad.
For prospective buyers, this growing international presence makes relocating to Madeira increasingly accessible while the island continues to retain its distinct Portuguese and Madeiran identity.
A property market that has grown in value
Madeira's property market has also developed considerably.
During the first quarter of 2026, the median transaction price across Madeira reached €2,863 per square metre, 13.7% higher than during the same period in 2025. In Funchal, the median reached €3,601 per square metre.
International buyers remain an important part of the market. Properties purchased by buyers with their fiscal domicile outside Portugal recorded a median transaction price of €3,295 per square metre during the same quarter.
Of course, previous price growth does not guarantee future returns. What the figures do show is that Madeira has developed into an established property market with considerable international interest.
Different parts of Madeira offer different opportunities
One of Madeira's advantages is the variety available within a relatively small island.
Funchal offers city living, restaurants, services and a large selection of apartments and modern developments. Areas such as Ponta do Sol and Calheta appeal to buyers looking for a quieter environment, space and Atlantic views, while Santa Cruz and other parts of the island provide their own balance between accessibility, lifestyle and property type.
Prices also vary significantly between locations, making it important to look beyond the overall Madeira average when searching for a property.
Choosing where to buy is therefore not simply about finding the best property. It is also about finding the part of Madeira that suits the way you want to live.
Madeira continues to gain international attention
The island's wider international growth also supports its property market.
Madeira recorded more than 12.9 million overnight stays in 2025, an increase of 7.9% compared with the previous year. Collective tourist accommodation also welcomed a record 2.4 million guests.
Visitors came from a broad range of countries, including Germany, the United Kingdom, France, Poland, the Netherlands, the United States and Spain.
For many people, discovering Madeira begins with a holiday. For some, repeated visits eventually lead to considering something more permanent.
Finding your place in Madeira
Buying property in Madeira is about more than choosing a house or apartment. Location can influence everything from climate and views to accessibility and daily life.
Someone looking for a permanent home will often have different priorities from someone searching for a holiday property or investment.
With more than 35 years of connection to Portugal and Madeira, FASP helps clients understand those differences and find the property and location that best match what they are looking for.