Porto Moniz and Calheta, the affordable refuge from Funchal's property pressure

The other end of the Madeiran property market

Porto Moniz and Calheta offer a market that is markedly more affordable than Funchal.

Natural pools and volcanic scenery as the draw

In Porto Moniz activity remains tied to domestic tourism and second homes.

Calheta, between marina, man-made beach and new developments

Residential schemes aimed at both domestic and foreign buyers have begun to appear.

A contrast that appeals to those leaving the capital behind

Buyers priced out of Funchal value the quiet of the rural west.

A rural coastline that still competes on price

The councils of Porto Moniz and Calheta point to the contrast with Funchal as their main argument for attracting investment. The average price per square metre in the west remains well below that of the capital, despite recent rises. Local estate agencies say they are fielding more and more enquiries from buyers who previously looked only at the capital.

Second homes and domestic tourism in Porto Moniz

The natural pools formed in the volcanic lava remain the municipality's main tourist attraction. Many homes are given over to weekend holiday letting for visitors from Funchal. Permanent residents note that this seasonal demand is starting to show in the sale prices of traditional houses as well.

Calheta, between new developments and mounting pressure

Calheta's marina and man-made beach have driven the construction of mid- and upper-range residential schemes over the past decade. Domestic buyers are looking for second homes, while foreign investors, chiefly British and German, are buying flats to let to holidaymakers. The council argues that growth here has been better planned than in other coastal areas of the island.

Those arriving in flight from Funchal prices

A number of young families who work in the capital have chosen to buy in the west and accept a longer daily commute. What they value above all is being able to afford a house with land, something all but impossible in Funchal on the same budget. Estate agents warn that this movement could accelerate price rises over the coming years if it continues at the same pace.