Which Area of Madeira Should You Choose to Live In?
One of the most common questions among people who are just moving to Madeira is simply what the best area actually is.
The truth is, there’s no universal answer. It all depends on why you’re moving — for work, for investment, for a quiet life, or for leisure.
Below are a few popular areas and what makes each one different.
São Martinho — for city living in Funchal
One of the most sought-after areas on the island.
Pros:
- Modern residential complexes.
- Close to the promenade and the ocean.
- Wide choice of cafés, restaurants, and shops.
- Good infrastructure.
- Easy to live here without a car.
Cons:
- Some of the highest property prices on the island.
- Crowded with tourists in summer.
- Traffic jams are common.
Funchal City Centre — for long-term rentals
If you’re planning to live without a car and want everything close by.
Pros:
- Banks, government offices, and shops within walking distance.
- Convenient public transport.
- Wide choice of apartments.
- No need for a car.
Cons:
- A noisier area.
- Parking is harder to find.
- Fewer modern residential complexes.
Premium New-Build Developments — for capital growth
Modern residential complexes remain one of the most sought-after options for investment.
Pros:
- High demand for quality housing.
- Good liquidity.
- Modern infrastructure.
- Lower maintenance costs in the early years.
Cons:
- High purchase price.
- Limited supply.
- Sometimes you have to wait for construction to finish.
Calheta — for a quiet life
A favourite area among many expats.
Pros:
- Sunnier climate.
- Peaceful atmosphere.
- Beautiful views.
- Sandy beach.
Cons:
- About 30–40 minutes from Funchal.
- Harder to live here without a car.
- Fewer shops and services.
Caniço / Garajau — for young families
A popular alternative to Funchal.
Pros:
- Prices are usually lower than in central Funchal.
- Good schools and kindergartens.
- Convenient connection to Funchal.
- Many modern residential complexes.
Cons:
- Traffic jams during rush hour.
- Some parts are on steep slopes.
- Infrastructure varies depending on the specific part of town.
Area Lido — for investing in tourist rentals
One of the most popular tourist areas on the island.
Pros:
- High demand among tourists.
- Well-developed infrastructure.
- Wide choice of restaurants, cafés, and hotels.
- Excellent oceanfront promenade.
Cons:
- Very high property prices.
- A noisier area.
- Crowded with tourists in high season.
Which area should you choose?
Before buying or renting, it’s worth answering a few questions for yourself:
- Are you planning to live here permanently, or just visiting a few times a year?
- Will you be using a car?
- What matters more to you: quiet, or being close to city life?
- Are you buying for yourself, or as an investment?
The answers to these questions will help you choose an area far more accurately than any generic advice.
Which area did you choose?
Share your experience in the comments. What do you like about your area, and what turned out to be a downside? Your experience could help someone who’s still planning their move to Madeira.