Funchal Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Madeira, Portugal
Is Airbnb profitable in Funchal in 2025? Explore comprehensive Airbnb analytics for Funchal, Madeira, Portugal to uncover income potential. This 2025 STR market report for Funchal, based on AirROI data from April 2024 to March 2025, reveals key trends in the bustling market of 2,048 active listings.
Whether you're considering an Airbnb investment in Funchal, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Funchal Airbnb data is crucial. Navigating the high regulation landscape is key to maximizing your short term rental income potential. Let's dive into the specifics.
Key Funchal Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Funchal (2025)
Understanding the monthly revenue variations for Airbnb listings in Funchal is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Funchal is typically August, while March often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Funchal across different performance tiers:
- Best-in-class properties (Top 10%) achieve $9,766+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $4,146 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $2,645 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $1,660, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Funchal
Funchal Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Funchal STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Julysees the highest demand (peak season occupancy), while March experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Funchal:
- Best-in-class properties (Top 10%) achieve 94%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 86% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 70%.
- Entry-level properties (Bottom 25%) average 46% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Funchal
Average Daily Rate (ADR) Airbnb Trends in Funchal (2025)
Effective short term rental pricing strategy in Funchal involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Funchal typically peaks in December and dips lowest during October. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:
- Best-in-class properties (Top 10%) command rates of $417+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $193 or more.
- Typical properties (Median) charge around $129 per night.
- Entry-level properties (Bottom 25%) earn around $94 per night.
Average Daily Rate (ADR) Trend by Month in Funchal
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Airbnb Seasonality Analysis & Trends in Funchal (2025)
Peak Season (August, July, May)
- Revenue averages $5,841 per month
- Occupancy rates average 74.4%
- Daily rates average $217
Shoulder Season
- Revenue averages $4,737 per month
- Occupancy maintains around 63.1%
- Daily rates hold near $210
Low Season (February, March, November)
- Revenue drops to average $3,363 per month
- Occupancy decreases to average 53.2%
- Daily rates adjust to average $200
Seasonality Insights for Funchal
- The Airbnb seasonality in Funchal shows moderate seasonality with distinct peak and low periods. While the sections above show seasonal averages, it's also insightful to look at the extremes:
- During the high season, the absolute peak month showcases Funchal's highest earning potential, with monthly revenues capable of climbing to $5,881, occupancy reaching a high of 75.5%, and ADRs peaking at $243.
- Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $2,996, occupancy could drop to 45.4%, and ADRs may adjust down to $192.
- Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Funchal.
Seasonal Strategies for Maximizing Profit
- Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
- Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
- Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
- Regularly analyze your own performance against these Funchal seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Funchal (2025)
Exploring the top neighborhoods for short-term rentals in Funchal? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.
| Neighborhood / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Old Town Funchal | Historic area with cobblestone streets and rich cultural heritage. A hotspot for tourists seeking to explore Madeira's traditions and local cuisine. | Funchal Cathedral, Mercado dos Lavradores, Museu de Arte Sacra, Museu CR7, Cable Car to Monte |
| Lido Promenade | Popular tourist area known for its seaside promenade and swimming pools. Offers beautiful views of the Atlantic and is ideal for sunbathing and relaxation. | Lido Pools, Cabo Girão Skywalk, Toboggan Ride from Monte, Ponta da Oliveira, Cristo Rei |
| Monte | Scenic suburb located on a hillside offering stunning views of Funchal and the bay. Attraction for nature lovers and those looking for adventure activities. | Monte Palace Gardens, Toboggan Rides, Church of Our Lady of Monte, Botanical Garden, Palheiro Gardens |
| Praia Formosa | The largest public beach in Funchal, offering a mix of pebbly and sandy areas. Popular with both tourists and locals for sunbathing and water sports. | Praia Formosa Beach, Madeira Story Centre, Funchal Marina, Lido Promenade, Goreana Tea Factory |
| Caniço de Baixo | A tranquil area near the coast known for its diving spots and beautiful views. Attracts tourists who prefer a quieter stay away from the city center. | Diving spots, Caniço Beach, Ponta da Oliveira, Aqua Parque, Cristo Rei |
| Sao Martinho | Residential area close to the beach and main attractions. Offers a variety of amenities and has a family-friendly atmosphere. | Funchal Zoo, World of Discoveries, Forum Madeira Shopping Centre, Sao Martinho Beach, Palheiro Golf |
| Camara de Lobos | Charming fishing village just outside of Funchal, famous for its picturesque harbor and local wine. Great for tourists looking for authenticity and local culture. | Camara de Lobos Harbor, Madeira Wine Lodge, Boca dos Namorados, Church of São Sebastião, Cliffs of Cabo Girão |
| Estreito de Camara de Lobos | Famous for its vineyards and traditional wine production. Popular with tourists interested in local wine tasting and the beautiful landscapes. | Wine estates, Levada hiking trails, Sao Goncalo Church, BioPark Madeira, Local art galleries |
Understanding Airbnb License Requirements & STR Laws in Funchal (2025)
Yes, Funchal, Madeira, Portugal enforces high STR regulations. Obtaining a license and ensuring compliance is almost certainly required according to current 2025 STR laws. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Funchal to ensure full compliance before hosting.
(Source: AirROI data, 2025, based on 86% licensed listings)
Top Performing Airbnb Properties in Funchal (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Funchalbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
Sky Villa by An Island Apart
Entire Place • 5 bedrooms
Vila das Quebradas by An Island Apart
Entire Place • 3 bedrooms
Vila Eucalipto by An Island Apart
Entire Place • 5 bedrooms
Vila Lazareto by An Island Apart
Entire Place • 3 bedrooms
Casa da Pinheira Ii - By Wehost
Entire Place • 4 bedrooms
Savoy Insular I by An Island Apart
Entire Place • 3 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Funchal (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Funchal based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| An Island | 158 | $36,623,413 | 5563 | 4.61/5.0 |
| LovelyStay | 58 | $3,081,744 | 1265 | 4.68/5.0 |
| Carlota & Babi | 17 | $2,784,748 | 636 | 4.82/5.0 |
| Madeira | 62 | $2,030,624 | 967 | 4.41/5.0 |
| OurMadeira | 25 | $1,392,095 | 617 | 4.69/5.0 |
| GuestReady | 14 | $1,274,262 | 690 | 4.58/5.0 |
| A Home In Madeira | 31 | $1,122,471 | 704 | 4.80/5.0 |
| Feels Like Home | 38 | $1,055,854 | 1156 | 4.60/5.0 |
| Amr | 33 | $942,709 | 444 | 3.98/5.0 |
| Ole | 42 | $913,049 | 415 | 3.35/5.0 |
Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Funchal.
Dive Deeper: Advanced Funchal STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Funchal. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsFunchal Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Funchal
- The Funchal Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 90.2% of the 2,048 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Funchal, Apartment/Condo properties are the most common (73.6%), reflecting the local real estate landscape.
- Houses represent a significant 18.6% portion, catering likely to families or larger groups.
- The presence of 5.8% Hotel/Boutique listings indicates integration with traditional hospitality.
- Smaller segments like others, outdoor/unique (combined 2.1%) offer potential for unique stay experiences.
Funchal Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Funchal
- The dominant room capacity in Funchal is 1 bedroom listings, making up 48.2% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 2 bedrooms properties represent 74.0% of the active Airbnb listings in Funchal, indicating a high concentration in these sizes.
Funchal Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Funchal
- The most common guest capacity trend in Funchal vacation rentals is listings accommodating 4 guests (30.3%). This suggests the primary traveler segment is likely small families or groups.
- Properties designed for 4 guests and 2 guests dominate the Funchal STR market, accounting for 59.5% of listings.
- 20.2% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Funchal.
- On average, properties in Funchal are equipped to host 3.7 guests.
Funchal Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Funchal
- The most common availability pattern in Funchal falls within the 91-180 days range, representing 32.9% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 40.2% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 181-270 days range is most frequent in Funchal (32.7%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 61.1% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Funchal Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
357 listings
18.2% of total
2 Nights
141 listings
7.2% of total
3 Nights
307 listings
15.6% of total
4-6 Nights
657 listings
33.5% of total
7-29 Nights
73 listings
3.7% of total
30+ Nights
427 listings
21.8% of total
Key Insights
- The most prevalent minimum stay requirement in Funchal is 4-6 Nights, adopted by 33.5% of listings. This highlights the market's preference for longer commitments.
- A significant segment (21.8%) caters to monthly stays (30+ nights) in Funchal, pointing to opportunities in the extended-stay market.
Recommendations
- Align with the market by considering a 4-6 Nights minimum stay, as 33.5% of Funchal hosts use this setting.
- If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 18.2% currently do.
- Explore offering discounts for stays of 30+ nights to attract the 21.8% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Funchal.
Funchal Airbnb Cancellation Policy Trends Analysis (2025)
Non-refundable
3 listings
0.2% of total
Refundable
1 listings
0.1% of total
Super Strict 60 Days
31 listings
1.7% of total
Super Strict 30 Days
175 listings
9.4% of total
Flexible
238 listings
12.8% of total
Moderate
526 listings
28.2% of total
Firm
386 listings
20.7% of total
Strict
504 listings
27% of total
Cancellation Policy Insights for Funchal
- The prevailing Airbnb cancellation policy trend in Funchal is Moderate, used by 28.2% of listings.
- There's a relatively balanced mix between guest-friendly (41.0%) and stricter (47.7%) policies, offering choices for different guest needs.
Recommendations for Hosts
- Consider adopting a Moderate policy to align with the 28.2% market standard in Funchal.
- Regularly review your cancellation policy against competitors and market demand shifts in Funchal.
Funchal STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Funchal
- The overall average booking lead time for vacation rentals in Funchal is 78 days.
- Guests book furthest in advance for stays during July (average 117 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in March (average 65 days), indicating more last-minute travel plans during this time.
- Seasonally, Summer (101 days avg.) sees the longest lead times, while Fall (79 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (78 days) as a baseline for your pricing and availability strategy in Funchal.
- For July stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 117 days out to capitalize on advance planning.
- Target marketing efforts for the Summer season well in advance (at least 101 days) to capture early planners.
- Monitor your own booking lead times against these Funchal averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Funchal (2025)
Amenity Prevalence
Amenity Insights for Funchal
- Essential amenities in Funchal that guests expect include: Wifi, TV. Lacking these (any) could significantly impact bookings.
- Popular amenities like Kitchen, Hot water, Essentials are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Funchal: Wifi, TV.
- Prioritize adding missing essentials: Wifi, TV.
- Consider adding popular differentiators like Kitchen or Hot water to increase appeal.
- Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
- Regularly check competitor amenities in Funchal to stay competitive.
Funchal Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Funchal
- The typical guest profile for Airbnb in Funchal consists of predominantly international visitors (96%), with top international origins including United States, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or French.
- Domestic travelers account for 3.9% of guests.
- Key international markets include United Kingdom (15.9%) and United States (13.2%).
- Top languages spoken are English (43.8%) followed by French (12.4%).
- A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.
Recommendations for Hosts
- Focus marketing internationally, particularly towards travelers from United States.
- Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
- Highlight unique local experiences or amenities relevant to the primary guest profile.
- Consider seasonal promotions aligned with peak travel times for key origin markets.
Nearby Short-Term Rental Market Comparison
How does the Funchal Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Ribeira Brava | 181 | $3,764 | $195.86 | 65% |
| Câmara de Lobos | 120 | $3,297 | $194.04 | 57% |
| Ponta do Sol | 287 | $3,171 | $170.72 | 65% |
| Santa Cruz | 472 | $3,009 | $184.52 | 58% |
| Calheta | 917 | $2,970 | $189.98 | 60% |
| São Vicente | 253 | $2,425 | $127.91 | 64% |
| Santana | 146 | $2,300 | $155.86 | 57% |
| Porto Moniz | 137 | $2,037 | $122.74 | 60% |
| Machico | 215 | $1,796 | $113.96 | 60% |
| Porto Santo | 143 | $1,744 | $177.79 | 47% |