Madeira

As of May 2026, Funchal, Porto Santo, Calheta, Santana have 4,901 active Airbnb and VRBO listings. This represents a 8% increase from the previous year.

The average Airbnb or VRBO in Madeira generates €36K per year. High-performing properties earn €72K/year, while low-performing properties earn €19K/year. The substantial performance gap between tiers highlights significant variance in asset optimization, as the market struggles with a 6% revenue decline despite stable long-term supply.

Airbnb and VRBO can be profitable in Madeira. Average annual revenue is €36K with 57% occupancy. High-performing properties earn up to €72K/year. This occupancy rate suggests a reliance on peak-season volume, where the 8% annual supply growth puts downward pressure on average earnings.

The average occupancy rate for Airbnbs and VRBOs in Madeira is 57%. This occupancy level, combined with an average nightly rate of €166, results in a RevPAR (revenue per available room) of €62 per day.

4+ bedroom properties demonstrate the strongest performance in Madeira, with annual revenue of €54K. These properties balance operating costs and rental demand most effectively in the Madeira market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Madeira area. Funchal: Moderate. Registration (AL license) required, liability insurance, safety standards. Tourist tax applies. Moderate enforcement with inspections. Porto Santo: Moderate. Same AL registration as Funchal, tourist tax, safety compliance. Light enforcement due to smaller scale. Calheta: Moderate. AL license mandatory, insurance, building standards. Light enforcement, rural area with fewer inspections. Santana: Lenient. AL registration theoretically required but minimal enforcement in rural mountain area. Many operate informally. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Madeira Airbnb and VRBO market is currently showing balanced conditions. Supply has grown 8% year-over-year, while RevPAR has decreased 6%. This indicates balanced supply-demand dynamics. The contraction in revenue amidst rising supply points to a market reaching a saturation point where growth is becoming more challenging.

Launch around January, 2-3 months before peak spring season (April peaks). This pre-peak timing lets you build reviews when competition is 42% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (February-January) when gaining traction is harder.

The most common amenities in Madeira listings include: Kitchen (94%), Washing Machine (88%), Tv (78%), Balcony (68%), Air Conditioning (45%). Amenities that boost revenue the most include Pool, Washing Machine, Air Conditioning, with Pool properties earning approximately 50% more (€53K/year vs €35K/year).

Monthly estimated revenue per listing in Madeira over the last 12 months: May: €2K, June: €2K, July: €2K, August: €2K, September: €2K, October: €2K, November: €2K, December: €2K, January: €1K, February: €2K, March: €2K, April: €3K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Madeira is €166, up 28% year-over-year. By property size: 1-bedroom properties average €130/night, 2-bedroom properties average €165/night, 3-bedroom properties average €232/night, 4+ bedroom properties average €330/night. Rates peak in August and are lowest in May.

Guests in Madeira book an average of 48 days in advance, down 30% from last year. By property size: 1-bedroom: 47 days, 2-bedroom: 47 days, 3-bedroom: 49 days, 4+ bedroom: 52 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Madeira Airbnb and VRBO market has seen the following changes: supply grew 8%, revenue per listing decreased 6%, occupancy fell 6%, average nightly rates increased 28%, and lead time decreased 30%. These metrics indicate a shift toward shorter-notice bookings and higher price sensitivity as increased inventory dilutes demand.

In Madeira, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Friday and are lowest on Thursday.