Funchal · report
Affordability in Funchal
At the bank valuation, a 90 m² home costs €273,330. With 10% down and a 30-year mortgage, the payment is €1,037 a month. Banco de Portugal caps it at 50% of a household's net income.
- Payment, two incomes
- 39%
- Payment, one income
- 79%
Try your own numbers
Starting from the bank valuation of €3,037/m² in Funchal, a median household net income of €15,774 a year (2024, Funchal) and a mortgage rate of 3.0% (August 2026).
The payment takes 39% of net income, within Banco de Portugal's 50% limit.
- Home price
- €273,330
- Monthly payment
- €1,037
- Share of net income
- 39%
- Highest price within 50%
- €346,428
The mortgage payment as a share of income, year by year
A 90 m² home with 10% down over 30 years, at each year's average price and rate, against one and against two of that year's median incomes.
- Two median incomes
- One median income
- Banco de Portugal limit, 50%
Show the numbers
| Period | Two median incomes | One median income |
|---|---|---|
| 2024 | 31.1% | 62.3% |
| 2023 | 30.2% | 60.4% |
| 2022 | 20.3% | 40.7% |
| 2021 | 16.9% | 33.8% |
| 2020 | 16.6% | 33.3% |
| 2019 | 16.3% | 32.6% |
| 2018 | 16.1% | 32.2% |
Portugal against the EU
Share of people spending over 40% of their disposable income on housing, then the rest of Eurostat's survey of living conditions. These are national figures, shown here as context.
- Portugal
- EU
Show the numbers
| Year | Portugal | EU |
|---|---|---|
| 2025 | 6.3% | 7.7% |
| 2024 | 6.9% | 8.2% |
| 2023 | 4.9% | 8.8% |
| 2022 | 5.0% | 8.7% |
| 2021 | 5.9% | 8.7% |
| 2020 | 4.1% | 7.8% |
| 2019 | 5.7% | 9.4% |
| 2018 | 5.7% | 9.6% |
| 2017 | 6.7% | 10.1% |
| 2016 | 7.5% | 10.9% |
| 2015 | 9.1% | 11.2% |
| 2014 | 9.2% | 11.5% |
| 2013 | 8.3% | 11.6% |
| 2012 | 8.3% | 11.5% |
| 2011 | 7.2% | 10.6% |
| 2010 | 4.2% | 10.0% |
| Share of people who | Portugal | EU |
|---|---|---|
| Spend over 40% of income on housing | 6.3% | 7.7% |
| … nationals (adults) | 4.4% | 7.1% |
| … citizens of another EU country (adults) | 17.1% | 15.2% |
| … non-EU citizens (adults) | 38.0% | 18.1% |
| Live in an overcrowded home | 12.7% | 16.8% |
| Own their home outright | 39.7% | 43.7% |
| Own with a mortgage | 31.5% | 24.8% |
| Rent at market price | 16.3% | 20.8% |
| Rent at a reduced price or free | 12.5% | 10.7% |
Income is INE's median declared income net of tax per tax household. It is published about two years late, so today's price is set against the latest year available. Banks also test the payment at a higher rate and may lend less than this.
Other reports for Funchal
Asking prices have an 80% chance of landing between €3,950/m² and €4,458/m² by September 2027.
- Expected, September 2027
- €4,204/m²
- Chance of a rise
- 76%
Owning a 90 m² home costs less each month than renting it. Owning counts interest, running costs and the return the deposit could earn, at the median sale price. Repaying the loan is saving, so it is left out.
- Rent per month
- €1,263
- Owning per month
- €1,117
Sellers ask 33.9% more than banks value homes at. A year ago the gap was +48.3%.
- Gap today
- +33.9%
- Change in a year
- −14.4 pp
18.1% more homes were licensed for construction in the last 12 months than in an average year of the past decade.
- Licensed, 12 months
- 365
- Per 1,000 residents
- 3.2
Over the last 12 months, buyers domiciled abroad paid 21.2% more per m² than buyers living in Portugal.
- Abroad against residents
- +21.2%
Bank valuations have fallen by 3% or more 5 times since 2011. The deepest began in April 2011.
- Deepest fall
- −27.7%
- Recovery from the low
- 41 months
In 2025 the population fell by 173 while 311 homes were finished.
- Homes finished, 2025
- 311
- Population change, 2025
- −173
13.2% of the 52,234 homes counted in the 2021 census stood empty, whether for sale, to let or for other reasons.
- Empty, 2021 census
- 13.2%
- Empty homes
- 6,883
In 2025, 36% of the buildings finished were work on existing buildings: extensions, alterations and reconstructions.
- Work on existing buildings, 2025
- 36%
- Reconstructions per 100 new buildings
- 0.0
Public bodies signed €5.4M of housing works here in 2025, and €34.2M since 2012.
- Signed in 2025
- €5.4M
- Per resident, 2025
- €48
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