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Society · Funchal · 20 July 2026

High-rise construction in Funchal: Paradigm shift amid housing crisis

Housing market pressure has led to a reversal in Funchal's urban planning policy, which previously resisted high-rise development.

High-rise construction in Funchal: Paradigm shift amid housing crisis

What was once unthinkable in Funchal has now become the official solution to the housing crisis. Strong resistance to high-rise construction, previously maintained to preserve the traditional landscape, has given way to housing market pressure, forcing a change in mentality among authorities.

The justification for this shift is that vertical construction allows for better use of scarce land and a reduction in final housing prices. This paradigm shift is exemplified by the history of the Leacock block, which evolved from a family seat linked to Madeira Wine to a modern hub, having been demolished in the early 2000s to make way for the Plaza shopping center and The Vine hotel.

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