Funchal real estate market — prices, rental yield and trend

• Average price: $3,723 / m²
• Gross rental yield: 4.91%
• 12-month price change (USD): 18.57%
• Net rental yield: 4.42%
• Transaction cost: 11.2%
• Price basis: local-market average

Funchal is one of the faster-moving markets Glopra tracks: the average residential square metre now costs $3,723, +18.6% in dollar terms over the last twelve months. That makes it the 105th most expensive of the 236 markets in the set.

What a buyer pays in Funchal

The $3,723 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 11.2% of the price here. On a 100 m² apartment at the average price that is roughly $41,698 on top of the $372,300 purchase price. That is close to the 10.3% median across the set. Against the Portugal national average of $2,430, Funchal carries a 53.2% premium — the gap between this market and the country as a whole. Among the other Portugal markets we track, Sintra at $3,259 is 14.2% cheaper, and Braga (city) at $2,354 is 58.2% cheaper.

What it earns

A square metre lets for about $15.2 a month. Against a purchase price of $3,723 per square metre that is 4.9% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 137th of 269 markets by gross yield. Rental income is taxed at 10–25% — the rate is not a single number here. That is the difference between 3.7% and 4.4% net on the same property. The 4.4% net figure we publish uses 10%.

How the tax works. 10% under the reduced rate for long-term residential lets (EBF art. 45-C, Decree-Law 97/2026, in force from 1 January 2026 to the end of 2029), which applies only while the rent is at or below €2,300 a month; above that threshold the standard 25% non-resident rate applies (CIRS art. 72). There is no flat expense allowance, so the statutory rate is the effective rate. The 10–25% band reflects that threshold, and the reduced rate has not yet been confirmed for non-residents by a tax-authority circular. Source: diariodarepublica.pt.

Who can buy in Funchal

Freehold, no restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.

How this figure is built

The price figure for Funchal is built from recorded transaction prices. It was last refreshed on 2026-10-17. We rate our confidence in this market’s data high: the underlying series is official and current. We recompute every market the same way, which is what lets Funchal be compared with a country average or another city.

Sources: INE 12-month municipal sale table mirror · mra-bio.me · cdn-images.rtp.pt · ine.pt. Snapshot: 2026-10-17.