Madeira's Real Estate Market: Bank Valuations Reach €2,450 per Square Meter
Madeira GuideIn January 2026, the median bank valuation for housing in Madeira reached €2,450 per square meter, reflecting a 22.5% increase from the previous year. This rise is attributed to the island's high demand and limited housing supply.
The real estate market in Madeira continues to experience significant changes, with the latest data indicating a substantial increase in bank valuations for residential properties. According to the National Statistics Institute (INE), the median bank valuation for housing in Madeira reached €2,450 per square meter in January 2026. This marks a 1.7% increase from the previous month and a notable 22.5% rise compared to the same month last year.
The persistent high demand for housing on the island, coupled with a limited supply of available properties, has driven up prices. Despite the ongoing interest from potential buyers, the number of homes on the market has not kept pace, leading to increased valuations as the market reacts to this imbalance.
Factors Influencing the Market
Several factors contribute to the rising real estate valuations in Madeira. The island's appeal as a desirable living destination, known for its beautiful landscapes and high quality of life, continues to attract both locals and expatriates. Additionally, economic growth and infrastructural developments have played a role in boosting property values.
The limited availability of land for new construction further exacerbates the situation, as developers face challenges in expanding the housing stock to meet demand. This scarcity of land, combined with stringent planning regulations, contributes to the upward pressure on property prices.
Implications for Residents and Investors
For residents, the rising property valuations could mean higher costs for homebuyers and renters, potentially pricing out local families. On the other hand, existing homeowners might benefit from increased property values, enhancing their investment returns.
Investors, both domestic and international, are likely to find the Madeira real estate market increasingly attractive, given the potential for capital appreciation. However, they must navigate the challenges posed by limited supply and regulatory constraints.
"The demand for housing in Madeira shows no signs of slowing down, and with limited supply, we expect valuations to continue rising," said Francisco José Cardoso, a local real estate expert.
Sources
Madeira Guide
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