What is happening in the Madeira property market in 2026?
The latest official housing statistics from Portugal’s Instituto Nacional de Estatística (INE) show that the Portuguese residential property market continued to experience strong price growth during the second quarter of 2026, although the pace of annual price growth slowed compared with the previous quarter.
For Madeira specifically, the latest official local house-price figures currently available cover the first quarter of 2026. These figures showed strong year-on-year growth in the median price of residential property in the region, with particularly strong growth in Funchal.
The next official Madeira local house-price release will provide the Q2 2026 figures needed to assess how property prices evolved between April and June.
Madeira Property Market 2026: Key Facts
The latest official data currently available provide the following picture of the Madeira real estate market:
Madeira median residential property price in Q1 2026: €2,863 per m²
Year-on-year change in Madeira: +13.7%
Quarter-on-quarter change in Madeira: +7.8%
Funchal median residential property price in Q1 2026: €3,601 per m²
Funchal year-on-year change: +23.0%
Madeira median price over the previous 12 months: €2,578 per m²
Funchal median price over the previous 12 months: €3,322 per m²
Median price for properties purchased by buyers with tax domicile abroad: €3,295 per m²
Median price for properties purchased by buyers with tax domicile in Portugal: €2,810 per m²
These figures are based on official INE data analysed and published by DREM and should not be confused with asking prices advertised by estate agents or property portals.
Are House Prices Falling in Madeira?
The latest official Madeira price data do not show a general fall in house prices.
In the first quarter of 2026, the median price of family dwellings transacted in Madeira was €2,863 per m². This was 13.7% higher than in the same quarter of 2025 and 7.8% higher than in the previous quarter.
It is important, however, to distinguish these figures from the latest national Q2 2026 data.
At national level, INE reported that Portuguese house prices increased by 16.5% year-on-year in Q2 2026. This represented a slowdown from the 17.8% annual increase recorded in Q1 and was the second consecutive quarterly slowdown in the annual rate of price growth.
Therefore, it would be premature to say that Madeira property prices are falling simply because transaction activity may have weakened.
The Q2 Madeira local-price data are needed before making a definitive statement about price movements during April, May and June 2026.
Madeira Property Prices in Q1 2026
The official DREM/INE statistics show that the median transaction price for residential properties in Madeira during the first quarter of 2026 was:
€2,863 per m²
This represented a 13.7% year-on-year increase.
Compared with the fourth quarter of 2025, the median price increased by 7.8%.
The Madeira median was also above the national median of €2,337 per m² during the same three-month period.
Funchal Property Prices in 2026
Funchal remains one of the highest-priced residential markets in Madeira.
During the first quarter of 2026, the median transaction price in Funchal was:
€3,601 per m²
This represented a 23.0% increase compared with Q1 2025.
However, compared with the previous quarter, the Funchal median decreased by 0.3%.
This illustrates why both annual and quarterly comparisons are useful when analysing the Madeira property market.
Funchal Property Prices Over 12 Months
Looking at the twelve months ending in Q1 2026 gives a different figure.
The median transaction price in Funchal over that period was €3,322 per m².
The €3,601 figure therefore refers to the three months of Q1 2026, while €3,322 refers to the previous twelve months. These figures should not be treated as interchangeable.
Property Prices Across Madeira
Property prices vary substantially between municipalities and locations across Madeira.
The Q1 2026 data demonstrate why a single regional average does not fully describe the local property market.
Within Funchal, there are also significant differences between freguesias.
In Q1 2026:
São Martinho recorded a median of €4,195 per m²
Sé recorded a median of €3,851 per m²
These differences highlight the importance of analysing the specific location, property type and comparable transactions when assessing the value of a property in Madeira.
Madeira Property Market and International Buyers
International purchasers remain an important part of Madeira’s residential property market.
In Q1 2026, the median price of properties transacted by buyers with a tax domicile outside Portugal was:
€3,295 per m²
For buyers with a tax domicile in Portugal, the median was:
€2,810 per m²
The difference should not be interpreted as meaning that international buyers necessarily pay more for an identical property.
The statistics reflect the characteristics, locations and types of properties purchased by each group.
Nevertheless, the figures demonstrate the importance of the international buyer segment in Madeira’s residential property market.
Madeira Property Market: Fewer Sales Does Not Necessarily Mean Lower Prices
Transaction volumes and property prices are two different measures of market activity.
A reduction in the number of completed transactions does not automatically mean that the value of properties has declined.
The properties being sold can differ in location, size, quality and price from those sold in the previous year.
This is particularly important in a geographically diverse market such as Madeira, where prices can vary considerably between Funchal, coastal municipalities, inland areas and individual neighbourhoods.
For this reason, transaction volume should not be used on its own to determine whether Madeira house prices are rising or falling.
Portugal Property Market Q2 2026
Portugal’s latest national housing data provide useful context for the Madeira market.
According to INE, residential property prices in Portugal increased by 16.5% year-on-year in Q2 2026.
This was 1.3 percentage points lower than the annual growth rate recorded in the previous quarter, representing the second consecutive quarterly slowdown in the annual rate of price growth.
During Q2 2026, prices of existing homes increased by 18.0% year-on-year, while prices of new homes increased by 12.3%.
INE also reported 40,142 residential property transactions in Portugal during Q2 2026, representing a 6.4% decrease compared with Q2 2025.
These national figures provide context for the Portuguese market, but they should not be presented as Madeira-specific price figures.
What Does the Latest Data Mean for Buyers in Madeira?
For people considering buying property in Madeira, the latest official figures demonstrate the importance of looking beyond a single headline statistic.
Madeira’s Q1 2026 median price was €2,863 per m², but actual property values vary significantly according to location, property type, condition, views, construction quality, outdoor space and other characteristics.
Buyers should therefore compare an individual property with relevant local comparable transactions rather than relying solely on the regional median.
What Does the Latest Data Mean for Sellers?
For homeowners considering selling property in Madeira, accurate pricing remains important.
The official statistics demonstrate substantial differences between municipalities and neighbourhoods.
A regional median therefore cannot, by itself, establish the appropriate market value for a particular villa, apartment or other property.
A professional valuation should consider the property’s specific characteristics and the most relevant comparable transactions.
Madeira Property Market Outlook for 2026
The latest official information shows a Madeira residential property market with substantial price differences between locations and continued year-on-year price growth in the latest available quarterly data.
At the national level, Portugal continued to record strong house-price growth in Q2 2026, although the annual rate slowed for the second consecutive quarter.
For Madeira, the next local house-price data will be particularly important because they will allow the Q2 2026 transaction-price figures to be assessed alongside the Q1 results.
When Will the Next Madeira House Price Data Be Available?
The next official local house-price publication will be important for understanding how Madeira property prices changed during Q2 2026.
Until those figures are available, the most recent official Madeira transaction-price data remain those for Q1 2026.
A responsible analysis should currently distinguish between:
Q1 2026 Madeira transaction prices, which are available and officially published;
Q2 2026 Portuguese national house-price data, published by INE on 22 September 2026; and
Q2 2026 Madeira local transaction-price data, which should be added once officially published by DREM.
Madeira Real Estate Market: Key Takeaways
Madeira’s median residential property transaction price was €2,863/m² in Q1 2026.
The Madeira median increased 13.7% year-on-year.
The Madeira median increased 7.8% compared with Q4 2025.
Funchal’s Q1 2026 median was €3,601/m².
Funchal’s Q1 median was 23.0% higher than a year earlier.
The twelve-month median for Funchal was €3,322/m².
Buyers with tax domicile abroad recorded a Q1 median of €3,295/m².
Buyers with tax domicile in Portugal recorded a Q1 median of €2,810/m².
Portuguese national house prices increased 16.5% year-on-year in Q2 2026.
Portuguese residential transactions fell 6.4% year-on-year in Q2 2026.
Q2 Madeira transaction-price data should be considered separately once DREM publishes the local figures.
About Nobrega Realty
Nobrega Realty provides real estate services in Madeira, assisting buyers and sellers with residential property, luxury homes and international property transactions.
For anyone considering buying property in Madeira, selling a property in Madeira or investing in Madeira real estate, understanding local market conditions and the characteristics of the individual property is essential.
Sources and Methodology
This report uses official housing statistics published by the Instituto Nacional de Estatística (INE) and the Direção Regional de Estatística da Madeira (DREM).
The Madeira price figures in this article refer to transaction data derived from administrative tax information relating to property transactions. They are not asking prices advertised by estate agents or property portals.
Madeira Q1 2026 figures refer to the three-month period January–March 2026 unless specifically identified as a twelve-month figure.
Portuguese national Q2 2026 figures refer to April–June 2026.