Madeira's Property Listings Plunge to All-Time Low in Q2 2025
The supply of residential properties for sale on the island of Madeira reached a historic minimum in the second quarter of 2025, according to a market analysis published this Thursday by the real estate data portal Idealista. This sharp contraction in available stock places the autonomous region, along with Lisbon, at the center of a nationwide housing supply shortage.
The data, which tracks property listings across Portugal, confirms that the number of homes available for purchase in the Madeiran archipelago is now lower than at any other point since records began. This trend mirrors a broader national pattern of shrinking housing inventory, which is currently only 5% above the record low set in the third quarter of 2022. The report's methodology involves analyzing the volume of listings on its platform, providing a real-time snapshot of market supply.
The statistical findings show that while the national average has not yet breached its previous minimum, five key districts and islands have already done so. Alongside Madeira, the districts of Lisbon, Aveiro, Coimbra, and Santarém also reported their lowest-ever levels of for-sale housing stock in the second quarter of 2025. The capital of the archipelago, Funchal, individually reflects this trend, with its own housing supply hitting a record low during the same period.
A geographic breakdown of the data reveals varying degrees of supply pressure across the country. The island of São Miguel in the Azores is just 3% above its historic low (Q1 2025). The district of Setúbal is 4% above its minimum (Q4 2022), and the Porto district is 12% above its low point (Q3 2022). In contrast, regions like Bragança and Guarda show more relaxed conditions, with stock levels 55% and 72% above their respective minimums from 2019 and 2021.
Comparing these figures to previous periods highlights a sustained downward trend in housing availability. For Madeira, the year-over-year decline in listings is among the most significant in the country, exacerbating the existing imbalance between high demand, partly fueled by foreign buyers and tourism, and dwindling supply. This trend has been accelerating over the past 18 months, with each quarter showing a progressively smaller number of available properties.
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The market segment most affected appears to be two- and three-bedroom apartments in and around Funchal, which have seen the steepest decline in listings. The luxury villa market, while also constrained, has shown slightly more resilience, though new high-end developments are quickly absorbed by the market. This indicates intense competition across all price points.
In response to the data, a spokesperson for a local real estate association in Funchal commented, "The numbers confirm what we experience on the ground every day. We have a long list of qualified buyers, both local and international, and a very short list of properties to show them. The primary challenge is not selling, but sourcing new inventory."
Government officials have yet to issue a formal response to the Q2 statistics. However, the regional government has previously acknowledged the need for more housing and has pointed to initiatives aimed at simplifying construction licensing, though the effects of these measures are not yet visible in the market data. The chronic shortage is a complex issue tied to construction costs, labor availability, and regulatory timelines.
Historically, Madeira's property market has been characterized by steady growth, but the current supply shock is a more recent phenomenon. Prior to 2020, the balance between new construction and sales was more stable. The post-pandemic surge in demand, particularly from remote workers and lifestyle-oriented buyers, has overwhelmed the existing and planned housing stock.
Idealista's report concludes with a warning that the scarcity of supply will inevitably impact "access to housing and the evolution of prices." The next set of comprehensive data for the third quarter is expected in December, which will be closely watched to see if the trend of shrinking inventory continues. Stay informed on Lisbon property market developments at realestate-lisbon.com.