House prices in Funchal reach 3,601 euros per square metre

Buying a home in Funchal now costs 3,601 euros per square metre. That is the median price of homes sold in Madeira's capital, according to local figures released by Portugal's statistics office, the INE, on 12 September. The median is the middle value: half the sales closed above it and half below. Across the region as a whole, the figure drops to 2,863 euros. For tenants, new leases signed in Funchal come in at 13.65 euros per square metre a month, against 11.97 euros for the island overall.

What it means in real money

A worked example of our own: an 80 square metre flat in Funchal costs around 288,000 euros at the median price. At the regional median it would be about 229,000 euros, almost 60,000 less. For renting, a 70 square metre flat would cost roughly 955 euros a month in Funchal and about 838 elsewhere in Madeira. These are illustrative sums only; every property has its own price.

Funchal against Lisbon and the mainland

The latest national figure from the INE puts Portugal's median price at 2,198 euros per square metre and new rents at 9.46 euros. Funchal sits more than 60 per cent above the national level for buying and more than 40 per cent above for renting. It is still well short of Lisbon, where the square metre tops 5,000 euros and new rents exceed 17 euros, but it now belongs firmly among the country's expensive cities.

Wages are not keeping up

The difficulty appears when prices are set against pay: according to DREM, the regional statistics office, average gross monthly earnings in Madeira were 1,608 euros in 2025. A young person renting that 70 square metre flat alone in Funchal would spend almost 60 per cent of gross salary on rent. With two incomes the burden falls to around 30 per cent, the level considered manageable. Buying means a deposit of around 30,000 euros for an 80 square metre flat, before taxes and fees.

Looking beyond the capital

For would-be buyers, municipalities such as Santa Cruz, Câmara de Lobos and Ribeira Brava are minutes away on the expressway, and the region as a whole sells below the capital. It is worth checking each municipality's median price with the INE, because the south coast is no longer cheap. Homeowners in Funchal are watching their wealth grow; tenants are watching their bills grow. More public housing and rent support for young people can be expected. Until then, comparing municipalities and working out the monthly payment before signing is the best protection.