Some foreign property owners are reportedly selling their homes in Madeira and returning to their countries of origin, although the scale of the movement remains unknown.
The development was reported by RTP Madeira on the 27th of August, with geopolitical instability cited as one of the reasons behind some owners’ decisions. However, no figures were provided to establish how many properties or owners are involved.
ADN Madeira believes that, if a significant number of properties is placed on the market, the additional supply could help ease some of the pressure on housing in the Region. However, the party warned that Madeira’s housing policy cannot depend on international instability to moderate prices.
If the reported sales lead to a genuine increase in supply, ADN Madeira believes they could provide buyers with more choice, strengthen their negotiating position and encourage some sellers to reconsider their asking prices.
There is, however, no guarantee that this will happen. Many of the properties concerned may remain beyond the financial reach of most Madeiran residents or simply be purchased by other international buyers.
Official figures indicate that the property market has not yet undergone any significant rebalancing.
During the first quarter of 2026, 665 homes were sold in Madeira, representing a reduction of 25.6% compared with the same period in 2025. Despite fewer transactions taking place, the median sale price rose by 13.7% to €2,863 per square metre.
The figures show that a fall in the number of sales has not, so far, resulted in lower prices.
There was also a marked difference between the prices paid by buyers with a tax address overseas and those whose tax address was in Portugal.
Homes purchased by buyers registered for tax purposes abroad had a median price of €3,295 per square metre. The corresponding figure for buyers with a Portuguese tax address was €2,810 per square metre.
ADN Madeira noted that a buyer’s tax address does not necessarily indicate their nationality. Nevertheless, the party believes the figures demonstrate that overseas demand remains concentrated in the more expensive sections of the market.
“A gradual market correction is not necessarily bad news. The bad news is working in Madeira and being unable to live in Madeira,” the party said.
ADN Madeira argued that the Regional Government should not rely on external events to achieve a moderation in property prices that regional housing policies have so far failed to deliver.
Pressure is also continuing within Madeira’s rental market.
During the first quarter of 2026, the median rent agreed under 481 new tenancy contracts reached €11.97 per square metre. This was 16% higher than during the corresponding period of 2025, while the number of new contracts fell by 8.6%.
The party stressed that its position should not be interpreted as opposition to foreign residents or international investment.
Madeira had 19,371 foreign residents at the end of 2025, an increase of 10.1% compared with the previous year. This population has helped offset the Region’s negative natural population balance and strengthened its working-age population.
ADN Madeira therefore warned against confusing foreign property owners who choose to sell with the much broader foreign community living and working in the Region.
The party called for the permanent monitoring of property prices, rents, transactions, available homes, overseas demand and housing requirements in each municipality.
It also wants stronger policies to increase the supply of affordable homes intended for permanent residence.
“Madeira should remain open to those who want to live, work and invest here,” ADN Madeira said.
The objective, it added, should not be to provoke a disorderly fall in property values, but to restore a sustainable balance between investment, housing supply, prices and local incomes.
For ADN Madeira, governing housing means creating the conditions that allow those who live and work in the Region to remain here, not waiting for an international crisis to bring prices down.
Samantha Gannon
info at madeira-weekly.com
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