Purchasing properties for rent in Funchal offers a gross yield of 4.9%, a figure lower than the national average of 6.8% recorded in the third quarter of 2026. Data from Idealista places Madeira's capital among Portuguese real estate markets with the lowest gross return on investment for rental housing.
Nationally, the gross return on housing stood at 6.8%, showing a slight decrease compared to the same period in 2025. Compared to the third quarter of 2024, the drop was 0.4 percentage points. Despite this trend, the return on housing investment in Portugal remains above the 5.7% registered in 2021.
Braga leads profitability in Portugal with 8.4%, while markets such as Bragança (3.9%), Faro (4.5%), Lisbon (4.8%), and Funchal (4.9%) show the lowest returns. The difference between Braga and Funchal is 3.5 percentage points, highlighting regional disparities. Other segments, like offices (7.9%) and shops (7.8%), present higher yields than housing.
