Madeira real estate market — prices, rental yield and trend
- Average price: $2,889 / m²
- Gross rental yield: 5.5%
- 12-month price change (USD): 4.88%
- Net rental yield: 4.95%
- Transaction cost: 11.2%
- Price basis: regional average
Residential property in Madeira averages $2,889 per square metre, +4.9% in dollar terms over the last twelve months. That makes it the 175th most expensive of the 264 markets in the set.
What a buyer pays in Madeira
The $2,889 figure is a regional average across all residential property types, which flattens a wide spread — the most sought-after areas run well above it, the rest of the region 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 $32,357 on top of the $288,900 purchase price. That is above the 9.5% median across the set — the entry cost is part of the investment case here. Of that, the transfer tax alone is 1–8% depending on the buyer and the property; the rest is notary, registration and agency fees.
What it earns
A square metre lets for about $13.3 a month. Against a purchase price of $2,889 per square metre that is 5.5% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 113th of 311 markets by gross yield. Rental income is taxed at 10–25% — the rate is not a single number here. That is the difference between 4.1% and 5% net on the same property. The 5% net figure we publish uses 10%. On the way out there is a third tax: a non-resident seller pays 6.3–24% on the gain, depending on how long the property was held and who is selling.
Who can buy in Madeira
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 Madeira is built from recorded transaction prices. It was last refreshed on 2026-10-16. We rate our confidence in this market’s data high: the underlying series is official and current. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.
Sources: idealista.pt. Snapshot: 2026-10-16.
Frequently asked questions
What is the gross rental yield in Madeira?
The gross rental yield in Madeira is 5.5% (data as of 2026-03-31). Source: INE (Instituto Nacional de Estatistica, Portugal) - Estatisticas de Rendas da Habitacao ao nivel local, 1.o trimestre de 2026 (released 26 Jun 2026; regional press release by DREM, Madeira's regional statistics office, same date). Median rent of NEW lease contracts of family dwellings, REGIAO AUTONOMA DA MADEIRA, 12 months ending March 2026 (1,771 contracts): 11.82 EUR/m2/month (Q1 2026 quarter alone: 11.97). USD = 11.82 x 1.12080 = 13.25. Same publisher, same NUTS III, same 12-month window, per m2..
What is the average price per m² in Madeira?
The average price in Madeira is $2,889 per m² (data as of 2026-03-31). Source: INE (Instituto Nacional de Estatistica, Portugal) - Estatisticas de Precos da Habitacao ao nivel local, 1.o trimestre de 2026 (destaque, 17 Jul 2026). Median sale price of family dwellings sold, REGIAO AUTONOMA DA MADEIRA (NUTS III), 12 months April 2025 - March 2026: 2 578 EUR/m2 (also reported by DNoticias 17 Jul 2026). Transaction (tax-record) data. USD = 2 578 x 1.12080 (ECB 2026-10-15) = 2 889. (Q1 2026 quarter alone: 2 863 EUR/m2.).
How much are transaction costs and purchase tax in Madeira?
Typical buyer-side transaction costs in Madeira are 11.2% of the price. Purchase tax is 8% of the price. (Data as of 2026-10-16.)
Can foreigners buy property in Madeira?
Freehold, no restrictions.
Similar markets
Portugal · Sintra · Braga (city) · Funchal
Latest Madeira market analysis
- Portugal construction costs rise 7.4% in September 2026 as labour leads — 2026-11-10
- Portugal rents fall 6% to €17.2 per sqm in October 2026 — 2026-11-03
- Portugal house prices reach €3,249 per sqm in October 2026 — 2026-11-02
- Portugal house prices: bank valuations reach €2,278 per m² in September 2026 — 2026-10-27
- Portugal house prices: €2,445 per square metre median in Q2 2026 — 2026-10-23
- Portugal mortgage rates rise to 3.194% in September 2026 — 2026-10-23
- Portugal: asking rents up 6.1% in a year to 18.3 euros a square metre — 2026-10-04
- Portuguese Asking Prices Reached a Record 3,228 Euros per Square Metre, Up 7.9% — 2026-10-04
- Portugal's Median New-Lease Rent Reached 10.17 Euros per Square Metre, Up 10.2% — 2026-09-29
- Portugal's Median Bank Valuation of Housing Hits a Record 2,254 Euros per Square Metre — 2026-09-27
- Portuguese House Prices Rose 16.5% in the Second Quarter as Sales Volumes Kept Falling — 2026-09-24
- Portugal Licensed Fewer Buildings but 10.8% More Homes in Q2 2026 — 2026-09-13