A new build is not automatically a good investment.
On Madeira, it’s very important to look not only at a beautiful project, but also at several key things:
- Location
The island is small, but the price per square meter varies greatly depending on the area. Funchal, Calheta, Machico, Caniço, Câmara de Lobos — these are completely different markets.
At the same time, it’s not just the town itself that matters, but also the elevation above the ocean, accessibility, infrastructure, view, and surroundings.
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Developer
I always look at who is building, which projects have already been completed, what the finishing quality is, and how well these properties then sell on the resale market. -
Stage of purchase
One of the main advantages of new builds is the opportunity to enter at an early stage and lock in the price.
In many projects, the terms look roughly like this:
20% upon signing the CPCV and 80% upon receiving the keys.
This allows you to fix the cost of the property today and pay the main part later.
If the market grows during construction, the investor gains an advantage simply by entering early.
- What’s included in the price
In modern projects on Madeira, the following are most often already provided:
underground parking, parking spaces, a fitted kitchen, air conditioning, terraces, swimming pools, and in some complexes — a rooftop pool and a gym.
In addition, new properties are covered by the developer’s warranty obligations.
- Liquidity
For me, this is one of the main criteria.
I always look at a property not only through the eyes of today’s buyer, but also ask the question:
who will this property be sold to in 3–5 years?
Because a good investment is not just buying a beautiful new build.
It is buying the right property, in the right location, from the right developer, and at the right price.
Viktoria Pavlovskaya
Real estate and investment expert on Madeira