A Panoramic Investment Opportunity in Funchal, Madeira

If you’ve ever dreamed of owning a holiday home with rental potential in a sought-after destination, this property in Funchal, Madeira might just be the perfect opportunity for you. Welcome back to Track Us Down, where today we showcase an incredible investment property offering breathtaking views, Airbnb potential, and room for renovations to maximize income.

Why Invest in Madeira?

As anyone who’s tried to book accommodation here in Funchal knows, Madeira is a popular year-round destination. The Airbnb market thrives, with many properties enjoying high occupancy rates throughout the year. Visitors flock to this island for its natural beauty, mild climate, and outdoor activities, and the demand for rental properties, especially those with views, remains high. That’s what makes this property so special. It’s a multi-floor building with stunning views, perched high above Funchal, giving you a sweeping panorama of the city, the Atlantic Ocean, and the surrounding mountains. From here, you can watch the cruise ships come and go, enjoy the twinkling city lights at night, and during holidays, even catch fireworks displays.

A Unique Living and Rental Setup

This property is not just a home but an investment. It includes:

• An owner’s suite: This top-floor, one-bedroom suite spans 100 square meters (over 1,000 square feet) and offers plenty of space. It even comes with its own elevator, adding convenience and a touch of luxury. There’s also a private lookout area (miradouro), perfect for soaking in the views.

• Two rental units: Each unit features two bedrooms, offering the same panoramic views. Both are currently rented as Airbnbs and are highly rated (9.3 out of 10). In fact, they are booked for at least 25 days a month, bringing in around 300 euros per day when fully rented.

• Additional potential: With a bit of renovation, there is potential to transform the two rental units into four smaller one-bedroom rentals or even add a studio. That would increase the number of rental units and boost potential income.

• A pool: The property includes a beautiful, well-treed pool area, complete with frangipani trees and a cozy cabana. The pool is a big draw for both guests and owners, perfect for relaxing after a busy day of exploring Madeira.

Room for Renovations and Increased Income

While the building is solid and structurally sound, the interior decor is dated. The property is about 25 years old and could benefit from some updates, particularly in the owner’s suite and the rental units. These renovations could easily modernize the space and, in turn, increase the rental rates. One of the great things about this property is that it’s already a functioning rental, meaning you could renovate one unit while still earning income from the others. With some investment in new flooring, fresh paint, and updated furnishings, the potential to increase nightly rates and occupancy is very high.

Why This Property Stands Out

• Amazing views from every level: Whether you’re on the top floor or in one of the rental units, the views from this property are second to none. You can see the ocean, the Funchal bowl, and the surrounding mountains, all from the comfort of your balcony.

• Size and space: The building offers a total of 400 square meters (about 4,300 square feet) of living space, set on a 660 square meter lot. That’s plenty of room for both the owner and guests to enjoy.

• Great rental potential: With a current 95% occupancy rate and plenty of interest from potential renters, this property is a steady income generator. If you’re looking for a holiday home that doubles as a rental investment, this is an excellent opportunity.

• Asking price: The current asking price is 760,000 euros, and given the size of the property, its prime location, and its rental history, it represents a strong investment.

A Perfect Holiday Home and Investment

If you’re looking for a property that offers both a personal retreat and income potential, this Funchal home is a perfect match. Whether you choose to live here and rent the other units, or rent the entire building as an Airbnb, the opportunities are endless. Imagine being able to lock up your home and travel, while your rental income continues to flow in, thanks to Madeira’s high demand for holiday accommodations. And with some strategic updates, you could easily increase your returns. This property has already garnered significant interest, so if you’re thinking of making an investment in Madeira, now is the time to act. Whether you’re a frequent visitor to the island or someone looking to make a permanent move, this property offers flexibility, luxury, and the opportunity to own a piece of one of Europe’s most beautiful islands. Thanks for joining us on this tour, and as always, remember to check back with us and Track Us Down for more incredible real estate opportunities in Madeira and beyond!