The island of Madeira is one of the two autonomous regions of Portugal. With warm winters, spectacular countryside and regular low-cost flights from the UK, it is a popular choice with overseas buyers looking for something different than the mainland.

If you would like further advice on the buying process in Portugal, download your free Portugal Guide.

Where to buy

The most sought-after areas of Madeira are Funchal, Caniço de Baixo, Garajau and the south coast. Funchal is the largest city and also the capital of the island; it is culturally rich with a long seafaring history. The best places to buy property in Funchal are Sao Goncalo, Santa Maria Major or Sao Martinho.

While property in Funchal is still cheaper than an equivalent city in the UK, for even more affordable options look to Garajau and Caniço de Baixo. For something a little quieter, consider Arco de Calheta on the south coast or villages like Ponta do Sol and Prazeres.

Property prices

As mentioned, prices in Madeira are relatively affordable. Funchal is the most expensive area – you will need a budget of around €250,000 plus taxes for a two-bedroom apartment. One-bedroom apartments start from around €150,000 while town houses and villas can be found from €350,000.

Cheaper properties can be found in other areas, such as in the mountains or further from the sea. For example, you can buy a one-bedroom property in Caniço, which is only a few minutes from Funchal, for around €80,000.

Why not split the cost and double the fun of owning a holiday home in Portugal by buying with family or friends? Read our guide to   Buying Abroad with Family

Cost of living

Similarly to mainland Portugal, you can enjoy a high quality of life for much less than in the UK and much of northern Europe. According to Numbeo, you would need around £2,194 in Funchal to maintain the same standard of life that you can have with £4,900 in London (assuming you rent in both cities).

Consumer prices are also 43% lower in Funchal than London, while restaurant prices are 56% lower and grocery prices 40% lower.

Compared to popular expat destinations on mainland Portugal, Funchal wins again. Restaurant prices are 22% lower than in Lisbon and 6% lower than in Porto.

However, you may find that the less traditional items are more expensive if they have been imported from other countries.

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