Madeira Property Valuations Hit New Historic High with 18.5% Annual Increase
The median bank valuation for residential properties in the Autonomous Region of Madeira (RAM) reached a new all-time high in August 2025, standing at €2,285 per square meter. This data, released by the National Statistics Institute (INE) and reported by the Regional Directorate of Statistics of Madeira (DREM), confirms the island's robust and appreciating real estate market. The new peak represents a 2.3% increase compared to the previous month and a substantial 18.5% surge when compared to August of the previous year.
The statistical report highlights that Madeira's property market is outperforming the national average in year-on-year growth and is bucking the trend of a slight slowdown observed elsewhere in Portugal. While the national monthly price variation showed signs of cooling, Madeira's market demonstrated continued strength. The national median valuation was reported at €1,965 per square meter, with a year-on-year growth of 18.1%, slightly below Madeira's rate.
A detailed breakdown of the property types on the island shows that apartments are leading the price rally. The median valuation for apartments in Madeira reached €2,500 per square meter, a remarkable 26.0% increase compared to the same month in the previous year. Single-family homes, or 'moradias', also saw their value increase, albeit at a more moderate pace, with a median valuation of €1,893 per square meter, representing a 4.2% year-on-year rise.
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Analysis at the municipal level indicates that Funchal, the capital city, continues to command the highest property values on the island. The median bank valuation in Funchal was €2,569 per square meter, a 14.5% increase from August 2024. Other municipalities are also experiencing significant growth, with Câmara de Lobos and Santa Cruz reporting median valuations of €2,210 and €2,213 per square meter, respectively. Santa Cruz recorded a particularly strong annual growth rate of 23.3%.
These figures place Madeira among the most valued real estate regions in Portugal, surpassed only by Greater Lisbon (€2,958/m²), the Algarve (€2,628/m²), and the Setúbal Peninsula (€2,351/m²). The data is based on approximately 620 bank appraisals conducted in August, a slight decrease in volume compared to the previous year, but the valuation results unequivocally point to a market with sustained and strong demand. Stay informed on Lisbon property market developments at realestate-lisbon.com.