What makes property in Madeira a good investment?

First and foremost, liquidity — the ability to sell the property again in a few years. Not simply an ocean or mountain view.

A beautiful view always sells an emotion. But it does not, by itself, sell the property to the next buyer. When I assess a property for an investor, I first put the view aside and ask: who else will want to buy this property, and how many such buyers are there?

A low price is not a guarantee of a good deal either. If a property is priced noticeably below the market level for its area, that is always a reason to look more closely rather than rush: sometimes there may be issues with the documents, construction quality or the location. The same applies to very large discounts on property. A 30–40% discount may look like a bargain, but more often it is a signal that the property may come with potential issues.

Every property I recommend has to pass one very important personal test: will I be able to sell it in three years, and what will I lose in the process? An experienced investor does not simply buy a property — they buy their exit strategy before the documents are even signed.

Viktoria Pavlovskaya — private real estate and investment expert in Madeira. Consultation is free, with no obligation.