Finding a rental in Madeira

Searching for your dream rental on the islands? Here are some tips to help you with finding a rental in Madeira.

Article by Viv Europe - Official legal and Relocation Partner to KipperTree

January 22, 2023

Located in the Atlantic Ocean, Madeira is an island that has so much to offer. From a fair climate to picturesque sceneries, it is no coincidence that everyone is suddenly interested in this serene destination. The days when Lisbon was the only attraction in Portugal are long gone; expats are discovering hidden gems all over the country, and Madeira is undoubtedly one of them. Does that make finding a rental in Madeira difficult? 

Although Madeira is an island, it is pretty vast, covering a space of about 801 km². However, with a population of just over 250,000, how hard can it be to find a rental in this region? If you’re interested in living in this destination permanently, you must know about its real estate market. That said, here is what you need to know about finding the right accommodation for you.

The challenges of finding a rental in Madeira

As mentioned earlier, Madeira is just getting the attention it deserves, and many expats choose to live in this destination. Just to demonstrate how interested foreigners are in this island, the foreign population has increased from 2.5% to 4.1% within the last decade. This increase, however small, has brought about some challenges as far as finding a rental in Madeira is concerned.

Vacation rentals give tenants much more profit in the summer

Although the Algarve region is the most popular tourist destination in Portugal, Madeira also receives a fair share of tourist action every year. While tourist activities benefit this island’s local economy, they also strain to find accommodation, especially for expats looking for long-term accommodations. This is particularly prevalent during the summer months when accommodation costs go up because demand cannot keep up with the current supply.

Because tourists on short stays prefer short-term rentals for a few days, it is common for the available rentals to be converted into short-term rentals that also earn the landlords more money. To put this into perspective, in the regular months, a one-bedroom apartment in Madeira is about €450; on the flip side, short-term rentals cost up to €67 per day.

Long-term rentals vs short-term rentals in Madeira

Essentially, rental accommodation in Portugal can be broken down into two main types, short-term and long-term rentals. Just as the name suggests, long-term rentals are the types of accommodation with contracts spanning six months or longer. This accommodation type is quite popular among professionals looking to settle in a given destination or families looking for long-term homes. Short-term rentals, on the other hand, are pretty popular among tourists.

The rental contract extends from a few days to a few weeks of stay. Unlike long-term rentals, where the cost of accommodation is calculated monthly, a short-term rental is paid on a daily basis. Long-term rentals can be challenging during Madeira’s peak summer months.

Living in Madeira is trending

To begin, the island of Madeira is where the football legend Cristiano Ronaldo hails from. As such, this destination has been receiving global recognition as among the top luxe places to visit in Madeira. This island has something for everyone, from beautiful sites to visit to fascinating landscapes for the outdoorsy people.

Also, living in Madeira gives you the opportunity of living on an island, but you still get the provision and protection of the EU. Madeira is a fun place to live, with plenty of other great things to do. Here are other reasons why this destination is getting more popular by the day.

Rich gastronomy

Relatively lower cost of living

Provides all the comforts of modern life

Golden visa prospects

There are still affordable options to rent

One thing that sets Madeira apart from the rest of the nation is that the rental prices are not ridiculously high. You can still find suitable apartments at a lower cost than in other popular cities like Lisbon or the Algarve. While you can find cheap accommodation in Madeira, it is also necessary to point out that there are different types of rental houses depending on your budget.

If you are living on a shoestring budget and need every cent to go a long way, consider living among the local population where there is little foreign influence on the cost of living. However, if you don’t mind splurging on rent, many affluent neighbourhoods will give you the living experiences that you are looking for.

To find out much more, read the full article here