Why Rental Demand in Madeira Is So Strong — and Why New Developments Are the Smartest Investment Right Now

Madeira is far more than a beautiful island with stunning views and mild weather. It’s quickly becoming one of the most attractive real estate markets in Europe — especially for investors focused on rental income and long-term value, what’s driving the demand? And why is now the right time to enter the market through new developments?

Let’s break it down.

Madeira Is a Magnet for Expats and Long-Term Tenants

Over the last few years, Madeira has transformed into a hub for remote professionals, entrepreneurs, freelancers, and families seeking a higher quality of life.

Why do they choose Madeira?

• Mild, sunny climate all year

• Safety, clean air, and incredible nature

• EU-level healthcare and infrastructure

• A calm, balanced lifestyle — close to Europe, but far from the noise

Year-Round Tourism = Year-Round Rental Demand

Unlike many holiday destinations, Madeira doesn’t rely on seasonal tourism.Visitors come in January and November just as much as in July or August — making the island a rare example of a 365-day destination.

The result? A consistently high demand for short-term rentals from tourists, digital nomads, and long-stay travelers.

But High-Quality Housing? Still in Short Supply.

Despite the growing interest, there’s a shortage of modern, well-located apartments, especially those with:

• Renovated interiors

• Parking and elevator access

• Proximity to amenities

• Functional layouts and balconies

This mismatch creates a real opportunity for investors entering the market via new developments — which are selling fast and renting even faster.

What Kind of Rental Returns Are We Seeing?

New residential projects on the island are delivering strong performance:

• Long-term rental yields: 6–7% annually

• Short-term holiday rentals: 8–12%+ (in euros)

And with professional property management, investors can enjoy passive income with little to no day-to-day involvement.

Property Prices Keep Climbing

What’s pushing prices upward?

• Limited land supply — development is controlled and sustainable

• Growing demand from European and international buyers

• Focus on quality — Madeira avoids overbuilding and mass-market housing

The earlier you invest, the more value you’re likely to gain during construction and into the resale phase.

The Bottom Line: New Builds Are the Smart Way In

Investing in new developments on Madeira is not just about yield — it’s about stability, liquidity, and long-term capital growth.

Skarb Prime Properties

Is a curated global collection of luxury villas and resort residences in the most desirable corners of the world

You get:

✔️ Strong rental performance

✔️ Growing asset value

✔️ Hassle-free ownership with turnkey delivery

✔️ Transparent legal and tax environment

✔️ Access to a market with real fundamentals

Looking for a high-potential project with verified legal status and full ROI projections? Apply for a personal offer — our team at Skarb Invest will help you select the right opportunity for your goals.

📩 Get your personalized offer