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Real Estate Takes off in Madeira: Housing Prices Soar by 13.7% in Funchal

 

6 September 2017

The euphoria enveloping Portugal’s real estate sector has arrived in Madeira, and the market in the archipelago is reaching a fever pitch. Funchal was the district capital where the price of homes for sale rose fastest in Portugal: 13.7% in three months. The increase compares the second quarter of 2017 to the first. Housing prices there rose to 1,536 euros per square meter according to data from idealista’s price index.

The fact that Madeira was the region that had the highest quarterly price increase in Portugal also helps prove that the country’s “boom” in real estate has arrived there as well. Buying a home in Madeira cost 1,273 euros per square meter in June, 8.5% higher than in March. At the national level, the increase was 3.8% in the same period, to 1,497 euros per square meter.

After these increases, the region of Madeira has become the third most expensive in the country to acquire a property. Only the Algarve (1,599 euros per m2) and Lisbon (2,050 euros per m2) exceed the prices seen in the archipelago in June.

Real estate transactions estate grew by 37.9% in 2015

The number of sales being carried out underlines the dynamism of the sector. The Madeira Autonomous Region saw a 37.9% increase in the number of purchase contracts for real estate in 2015, totalling 3,674 properties, according to the most real estate recent data available at the Regional Directorate of Statistics of Madeira (DREM).

The average value of properties transacted in 2015 in Madeira was 67,100 euros, 8.8% less than the previous year (73,600 euros), according to a report by the Jornal Econômico, based on the data.

Few properties have air conditioning

Another study by idealista reveals that only 7.9% of the houses for sale and rent in Portugal have air conditioning. In this case, the region of Madeira is at the top of the ranking: only 0.9% of the properties announced for sale have air conditioning.

In Funchal, only 1.1% of the properties that are on the market have air conditioning. Only Guarda (0.4%), in the north of mainland Portugal, surpasses the island city.

Original Story: idealista

Translation: Richard Turner