Living on Madeira

New-build flats are found mainly in and around Funchal (Caniço, Camacha, Gaula, Santa Cruz, Machico) – on average €12–20/m², in prime locations also €25+. If you have modest requirements you can also find offers under €10/m².

In the west/north-west (Porto da Cruz, Santana, Faial, São Jorge) or the south/south-east (Câmara de Lobos, Ribeira Brava, Ponta do Sol, Calheta) there are more detached houses instead of apartment blocks – but availability is lower. A local advisor who quickly hears when something becomes free is worthwhile here. Prices are usually somewhat below Funchal level.

Prices have risen noticeably over the past three years – demand driven by geopolitical uncertainty, dissatisfaction in people’s home countries and the mild climate all year round. Undeveloped plots in good locations are rare, and ownership or boundaries are not always cleanly documented.

Our advice: Have the cadastral plans checked and cross-check contracts before the purchase becomes a headache – we are happy to put you in touch with lawyers, notaries and estate agents.

It works much like in other European countries: architect, municipal regulations (heights, setbacks, rights of way, utilities), planning phase of about 1 year, and the building application at the Câmara Municipal takes another 4–6 weeks. After that, obtain quotes from building companies – important: not every provider actually holds the required licence. Expert support pays off here.

Somewhat easier than a new build, but: before signing at the notary, be sure to check whether the existing building is actually permitted (with inherited properties the owners often don’t know exactly themselves).

Tip: Existing properties can usually be extended by up to 25% without major permit problems, as long as no third-party rights are infringed.