Funchal's Housing Market Sees Significant Decline in Available Stock
Madeira GuideThe housing stock in Funchal has decreased by 19% over the past year, surpassing the regional average of a 15% decline, highlighting a broader trend in Portugal’s real estate market.
The availability of houses for sale in Funchal has experienced a significant downturn, with a 19% reduction in stock over the past year. This decline surpasses the regional average, where the overall housing stock fell by 15% in Madeira during the fourth quarter of 2025.
These statistics are part of a broader trend affecting the Portuguese real estate market, which saw a 13% decrease in available housing compared to the same period in 2024. This trend has been analyzed by Idealista, a leading real estate marketplace in southern Europe, which noted similar declines across 18 district capitals and autonomous regions.
Madeira, known for its picturesque landscapes and high quality of life, has traditionally been a desirable location for both locals and expatriates. However, the current decrease in housing stock could impact potential buyers and investors looking to settle in the region.
Factors contributing to this decline include increased demand from both domestic and international buyers, coupled with limited new constructions. As a result, the scarcity of available properties is driving prices upward, posing challenges for first-time buyers and those looking to relocate.
The situation in Funchal reflects a larger narrative seen across Portugal, where housing availability is tightening, prompting discussions among policymakers and stakeholders on how to address these challenges effectively.
For residents and tourists in Madeira, this situation may affect accessibility and affordability, influencing decisions on relocating or investing in property within the region.
Sources
Madeira Guide
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