Madeira remains among Portugal’s most expensive housing markets despite price dip

The Madeira region stayed the third‑most expensive area in Portugal for buying homes in the second quarter of 2026, with the average sale price at €4,401 per square metre, a marginal 0.4% decline from the first quarter. Only Lisbon (€5,660/m²) and Faro (€4,759/m²) were pricier. Rental rates rose slightly to €16.06/m², placing Madeira second nationally behind Lisbon and just above Faro.

At the same time, Portugal’s overall supply of homes for sale fell 8.4% year‑on‑year, removing 12,034 properties from the market, according to eXp Portugal. The steepest drop was in Madeira, where the available housing stock shrank by 24.1%. Other regions also saw sharp declines, but the loss in Madeira was the most pronounced. João Miguel Louro, director of eXp Portugal, said demand remains “notably resilient” and is outpacing new listings, creating pressure on prices and making home ownership increasingly difficult for many Portuguese families.