The Governo Regional da Madeira weighs new housing measures as island prices climb

A problem already on the regional agenda

The Governo Regional da Madeira is examining measures to improve access to housing.

Possible rent support for young people and families

One option under consideration is stronger direct support towards rent for young people and families.

The option of declaring areas of urban pressure

Declaring parts of Funchal as areas of urban pressure is under study.

Social housing on public land

Building more social housing on publicly owned plots is also on the table.

A market under strain in Funchal for years

The rising cost of housing in Funchal and its metropolitan area is not a recent development but one that has been building for several years, driven by tourism, the arrival of foreign remote workers and a supply of new construction that has not kept pace with demand. Residents' associations have long been calling for a firmer institutional response than the piecemeal measures applied so far. The Governo Regional's announcement comes against this backdrop of mounting social pressure over access to housing.

The precedent of urban pressure areas on the Portuguese mainland

The urban pressure area designation, already used in mainland Portuguese cities such as Lisbon and Porto, allows authorities to restrict certain land uses or holiday letting in specific areas where housing prices have surged. The Governo Regional da Madeira is looking at adapting the tool to conditions in Funchal, though it has yet to specify which neighbourhoods might be covered. Specialists consulted warn that its effectiveness will depend largely on how far the restrictions eventually approved actually go.

The property sector waits to see

Developers and estate agents in Funchal are following the announcement closely, aware that any restriction on holiday letting or on particular land uses could bear directly on their business. Some sector representatives want the new measures to come with clear incentives to build social housing, rather than merely curbing existing supply. The Governo Regional has indicated that both strands, restriction and support for social housing, will be presented together in the coming months.