Meanwhile in Madeira - December 2022

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Posted by kevin on December 22, 2022

Welcome to the first issue of ‘Meanwhile in Madeira’. A quarterly update of what’s been happening in the real estate market in Madeira, on the island and in your agency.

Madeira Real Estate: Overview in December 2022

Let’s start with an overview of the real estate market in Madeira and what makes this island an excellent choice for buying a property.

Buying a property in Madeira: A dynamic market

The dynamic of Madeira’s property market has been hard to ignore over the last two years. In April 2022, a study by the Autonomous Region of Madeira showed that house prices on the island increased by 14.2% last year. According to the study, the capital Funchal became the third most expensive city in Portugal for buying property. The real estate market in Madeira has never been more vibrant. The challenges of today have a direct influence on our decisions tomorrow. Stability is a luxury that seems to be disappearing in many areas. Whether it is the stock market, inflation or the rising cost of living. Prices are rising and at the same time financial resources and income are decreasing. For many years, the real estate market has presented itself as a possible security. The investment potential is great and the returns good. International competition makes investing in real estate on the island of Madeira even more attractive now and in the future. 

As a result, it is reasonable to assume that the amount of investment in Madeira will continue to rise even if the purchasing power for real estate on the mainland declines as a consequence of the current economic climate.

The south-west of the island: an attractive choice

Rural municipalities such as Calheta, Ponta do Sol, Prazeres, Ribeira Brava and Ponta do Pargo are experiencing a significant increase in demand for buying property. Especially for tourist holiday rentals and retirement residences, these municipalities are attractive for buyers and investors. The rising prices in the capital, as well as the good weather and quieter location, are driving people out of the big City. At the same time, the expansion of the infrastructure through the “Via Rapida” takes away the disadvantages of living outside Funchal. 

Madeira: an international island open to expats & digital nomads

In addition, Madeira is gaining popularity with US and Canadian expats as well as digital nomads from all over the world who want to relocate their permanent residence to Madeira Island. The proportion of foreigners in the Calheta region has increased by almost 20% in the last two years. The majority of the newcomers come from English, German and French-speaking countries, who appreciate the advantages of the island combined with the high quality of life. Living in the sun in the middle of the Atlantic Ocean, with moderate temperatures all year round and still the best connections to Europe’s airports, rightly gives Madeira the term “dream island” and will continue to attract people from all over the world.

Despite the frantic pace at which Madeira’s real estate market moved, buying a property in Madeira remains an excellent and wise investment decision. The island offers a peaceful lifestyle, a safe environment, no pollution, excellent education, first-rate healthcare, stunning views of the sea from every part of the island, and abundant natural beauty. What would be a better setting for a successful investment?

News of your Real Estate agency: Your Madeira – Real Estate

2022, a year in review

As we reflect on this year, we are extremely grateful to have worked with such wonderful and interesting clients. You came from all over the world to live or invest on the dream island of Madeira; we can’t even begin to count how many of you we have met. Thank you for your trust!

We at Your Madeira – Real Estate can look back on a successful year in 2022. Sybille Rauch, the company’s founder and a longtime real estate expert, started a generational shift at Your Madeira – Real Estate with the entry of managing partners Kevin Fantazi and Andre Kummer. Together, we focused the business on the German, English, and French-speaking regions to serve our main customers.

Thanks to the great teamwork with our real estate professionals, Anett and Carla, as well as our business partner, Tony, we are very well established in the real estate sector. Our property management for holiday rentals is handled through a partnership with the reliable Anita’s Laundry and our experienced and professional Property Manager, João. The communication and online presence of Your Madeira – Real Estate is guaranteed for the future thanks to our marketing specialist Kelly.

Through this realignment, we have created a good mix of modern concepts and decades of expertise with fresh forces. This combination enables us to serve our clients in the real estate and rental business even better.

Providing quality, professionalism, and focusing on the customer experience are our top priorities. Since trust is a precious commodity, we make every effort to earn it by giving our partners and clients our full attention and commitment.

2023, what’s next? 

The property market in Madeira is still interesting. The purchasing power and demand for real estate both domestically and internationally may be impacted by the current economic climate on the European mainland and its influencing factors, such as the central banks’ interest rate policies, the rising cost of living and energy, and exploding inflation. Experts anticipate a decline in real estate prices in 2023.

It’s unclear, though, whether the island of Madeira will also experience this price decline. The demand for real estate from purchasers and investors from nations like the USA, Canada, and the Asian region already constitutes a real alternative for Madeira’s real estate market, even if the purchasing power from Europe might decline in 2023 as a result of the aforementioned factors. After the winter, it will likely be clear how the overall demand will change throughout the next year.

On the supply side, many properties currently under construction will be completed. Contractors, architects, and engineers around the whole island are well supplied with orders and new projects. The Calheta area is becoming more and more developed and open for construction. The challenge in the upcoming years will undoubtedly be to integrate the island’s stunning natural beauty with the development of new investments and residences. With all the rising numbers, whether in tourism or in buying and investing in the real estate market, the natural magic of the dream island Madeira must not be lost. The island’s catchphrase, “Madeira is for everyone,” is not used in advertising for nothing.

In any case, we are looking forward to the coming year and feel well prepared for you in 2023. Together with our team, we can make your dream of owning a home, investment or project on the dream island of Madeira come true. The right time is now!




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