
Updated: 11 September 2026
It depends on the purpose of the purchase — there is no single “best” area in Madeira.
Funchal is the best choice for city living, with strong infrastructure, restaurants, schools, healthcare and consistently high resale demand. São Martinho is one of Funchal's most sought-after residential areas, offering new developments, ocean views and proximity to the Lido bathing complex. Caniço and Garajau are excellent alternatives close to Funchal: you generally get more square metres for the same budget, and both areas are very popular with families with children and people who live on the island permanently. Calheta is the sunniest part of the island, known for villas, 180-degree ocean views and a more relaxed lifestyle; it suits those seeking privacy or planning for retirement. Câmara de Lobos is currently developing rapidly: the entry price is lower than in central Funchal, while the potential for growth is high.
Before a purchase, I always compare not only the price per square metre, but also the property's actual location: accessibility, construction quality and genuine demand in the area.
Viktoria Pavlovskaya — private real estate and investment expert in Madeira. Consultation is free, with no obligation.