Funchal · report
Buy or rent in Funchal
Owning a 90 m² home costs less each month than renting it. Owning counts interest, running costs and the return the deposit could earn, at the median sale price. Repaying the loan is saving, so it is left out.
- Rent per month
- €1,263
- Owning per month
- €1,117
Try your own numbers
Starting from INE's median sale price of €3,538/m² and median new-lease rent of 14.0 €/m² a month in Funchal, and a mortgage rate of 3.0%.
Owning costs less each month than renting.
- Rent a month
- €1,263
- Owning a month, not recovered
- €1,117
- Interest
- €716
- Running costs
- €265
- Return given up
- €135
- Cash out a month, if buying
- €1,474
Gross rental yield in Funchal
A year's rent as a share of the sale price, from INE's medians. Higher means rent is dear compared with buying.
Show the numbers
| Period | Funchal |
|---|---|
| Q2 2026 | 4.8% |
| Q1 2026 | 4.9% |
| Q4 2025 | 5.1% |
| Q3 2025 | 4.8% |
| Q2 2025 | 4.8% |
| Q1 2025 | 5.0% |
| Q4 2024 | 5.0% |
| Q3 2024 | 5.6% |
| Q2 2024 | 5.3% |
| Q1 2024 | 5.0% |
| Q4 2023 | 5.1% |
| Q3 2023 | 4.9% |
| Q2 2023 | 4.9% |
| Q1 2023 | 5.2% |
| Q4 2022 | 5.1% |
| Q3 2022 | 5.1% |
| Q2 2022 | 5.1% |
| Q1 2022 | 5.1% |
| Q4 2021 | 5.1% |
| Q3 2021 | 5.3% |
| Q2 2021 | 5.1% |
| Q1 2021 | 5.0% |
| Q4 2020 | 5.0% |
| Q3 2020 | 5.1% |
| Q2 2020 | 5.3% |
| Q1 2020 | 5.4% |
The comparison counts only the costs of owning you never get back: interest, running costs and what the deposit and purchase costs could earn elsewhere. Loan repayments build equity, so they are left out. So is any rise in the home's value, because nobody knows it in advance.
Other reports for Funchal
Asking prices have an 80% chance of landing between €3,950/m² and €4,458/m² by September 2027.
- Expected, September 2027
- €4,204/m²
- Chance of a rise
- 76%
At the bank valuation, a 90 m² home costs €273,330. With 10% down and a 30-year mortgage, the payment is €1,037 a month. Banco de Portugal caps it at 50% of a household's net income.
- Payment, two incomes
- 39%
- Payment, one income
- 79%
Sellers ask 33.9% more than banks value homes at. A year ago the gap was +48.3%.
- Gap today
- +33.9%
- Change in a year
- −14.4 pp
18.1% more homes were licensed for construction in the last 12 months than in an average year of the past decade.
- Licensed, 12 months
- 365
- Per 1,000 residents
- 3.2
Over the last 12 months, buyers domiciled abroad paid 21.2% more per m² than buyers living in Portugal.
- Abroad against residents
- +21.2%
Bank valuations have fallen by 3% or more 5 times since 2011. The deepest began in April 2011.
- Deepest fall
- −27.7%
- Recovery from the low
- 41 months
In 2025 the population fell by 173 while 311 homes were finished.
- Homes finished, 2025
- 311
- Population change, 2025
- −173
13.2% of the 52,234 homes counted in the 2021 census stood empty, whether for sale, to let or for other reasons.
- Empty, 2021 census
- 13.2%
- Empty homes
- 6,883
In 2025, 36% of the buildings finished were work on existing buildings: extensions, alterations and reconstructions.
- Work on existing buildings, 2025
- 36%
- Reconstructions per 100 new buildings
- 0.0
Public bodies signed €5.4M of housing works here in 2025, and €34.2M since 2012.
- Signed in 2025
- €5.4M
- Per resident, 2025
- €48
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