The median monthly rent per square metre for new residential tenancies in Madeira rose by 17.4% between the second quarter of 2025 and the same period this year, reaching €12.78. This was the largest annual increase among Portugal’s nine regions and exceeded the national rise of 10.2%.
Figures released by the Regional Directorate of Statistics of Madeira (DREM), based on National Statistics Institute data, show that 456 new rental contracts were signed between April and June 2026. This was 8.8% more than a year earlier, although 5.2% fewer than in the previous quarter. The median rent increased by 6.8% compared with January to March.
Madeira had the country’s second-highest regional median rent, behind Greater Lisbon at €15.24 per square metre. The national figure was €10.17.
The Setúbal Peninsula followed Madeira at €11.99, ahead of the Algarve (€11.56), the North (€8.70), Oeste and Tagus Valley (€7.75), the Azores (€7.00), the Centre (€6.86) and Alentejo (€6.25).
Within Madeira, studios and one-bedroom properties recorded the highest median rent per square metre, at €14.81. Two-bedroom homes stood at €12.72, while three-bedroom properties recorded €11.36.
Funchal accounted for 294 of the region’s 456 new contracts. Although the number signed fell by 7.3% compared with the previous quarter, it increased by 3.2% year on year.
The municipality’s median rent reached €14.49 per square metre, up 6.2% on the previous quarter and 17.0% on a year earlier. This placed Funchal third among Portuguese municipalities for the highest median rents on contracts signed during the second quarter.
Looking at the broader 12-month period from July 2025 to June 2026, Madeira recorded 1,828 new rental contracts, with a median rent of €12.32 per square metre. This represented an increase of 15.0% compared with the preceding equivalent annual period and 4.2% compared with the rolling year ending in March 2026.
The corresponding national median was €9.76, up 9.4% year on year. Madeira again ranked second among the regions, behind Greater Lisbon at €14.71.
For this 12-month measure, Funchal’s median stood at €14.03 per square metre, placing it sixth nationally, behind Lisbon, Cascais, Oeiras, Sines and Porto. Santa Cruz recorded €11.46, below Madeira’s median but above the national figure.
Studios and one-bedroom homes also had the highest rent per square metre over the 12 months, reaching €14.79 across Madeira and €16.29 in Funchal.
These figures cover newly signed tenancy agreements, rather than all existing rents. The median is the middle value, with half of the recorded rents per square metre above it and half below.
DREM’s current release confirms the headline annual increases of 17.4% in rents and 8.8% in new contracts. estatistica.madeira.gov.pt
Samantha Gannon
info at madeira-weekly.com
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