Housing prices in Madeira fell by 8.3% in the fourth quarter of 2025 compared with the same period a year earlier, making it one of only two sub-regions in Portugal to record a decline. The other region to post a drop was Alto Tâmega e Barroso, where prices decreased by 12.1%, while 24 out of 26 sub-regions saw increases. Nationally, the median price of the 41,789 family homes sold reached 2,198 €/m2, up 17.5% year-on-year, even as transactions fell by 5.3%. Despite the annual setback, Madeira still ranked as the fourth most expensive region in Portugal with a median price of 2,655 €/m2, behind Greater Lisbon, the Algarve, and the Setúbal Peninsula. The region also remained above the national average for the full year 2025, which stood at 2,076 €/m2. Compared with the third quarter of 2025, Madeira prices rose by 5.7%, indicating a short-term recovery after the earlier decline from the Q4 2024 peak of €2,895/m² through Q1 2025 and Q2 2025. In Funchal, prices climbed to 3,612 €/m2 in the fourth quarter, the highest level of the year, although this was still 2.2% below the same quarter in 2024, and São Martinho and São Vicente marked the regional extremes at 4,120 €/m2 and 1,289 €/m2 respectively. The report also shows that foreign buyers paid much more than residents in Greater Lisbon and the Porto metropolitan area, while Madeira remained among the higher-priced markets with active domestic and foreign demand.
