The gross yield from purchasing property for rental in Funchal stood at 5.2% in the second quarter of 2026, a figure lower than the national average of 6.2%. According to idealista data, this rate represents a decrease of 0.7 percentage points compared to the same period in 2025.
Funchal has the third-highest sales price in the country (€3,921/m²), behind Lisbon and Porto. Although the rental value per square meter (€16.8/m²) is the second highest, surpassed only by Lisbon, the relationship between purchase cost and rental value results in a considered low profitability.
This low yield places Funchal among the district capitals and autonomous regions with the lowest returns, ahead only of Lisbon (4.3%), Faro and Porto (4.8%), and tied with Aveiro and Viseu (5%). Cities like Castelo Branco and Vila Real lead profitability with 8.1%.
