Airbnb Market Analytics, Statistics and Data in Funchal, Madeira, Portugal
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Funchal? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Funchal:
How much do Airbnb hosts make on average per month in Funchal?
The short-term rental market in Funchal shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $2,682 per month
- Strong performing properties (top 25%) make $4,319 or more
- Best-in-class properties (top 10%) achieve $11,029+ monthly
- Entry-level properties (bottom 25%) typically earn around $1,706
Revenue Variations by Month
Occupancy Rates Throughout the Year in Funchal
The market in Funchal shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 71% occupancy rates
- Strong performing properties (top 25%) achieve 86% or higher
- Best-in-class properties (top 10%) reach 93%+occupancy
- Entry-level properties (bottom 25%) average around 48%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Funchal
Daily rates in Funchal vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $128 per night
- Strong performing properties (top 25%) secure $199 or more
- Best-in-class properties (top 10%) pull in $434+ per night
- Entry-level properties (bottom 25%) earn around $92
Daily Rate Variations by Month
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Seasonality patterns in Funchal
Peak Season (August, July, May)
- Revenue peaks at $6379.05 per month
- Occupancy rates reach 75.21%
- Daily rates average $234.60
Shoulder Season
- Revenue averages $4885.11 per month
- Occupancy maintains 64.24%
- Daily rates hold at $212.45
Low Season (November, February, January)
- Revenue drops to $2998.99 per month
- Occupancy decreases to 39.83%
- Daily rates adjust to $171.10
Is it still profitable to do Airbnb in Funchal in 2025?
Yes! Funchal demonstrates highly seasonal trends requiring strategic adaptation, featuring a healthy occupancy rate of 64% and strong monthly revenue averaging $4885 and As a mature market with 1957 active listings, there's strong demand despite the competition. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (business travelers, long-term stays, holiday visitors, event attendees, remote workers)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Funchal
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| Old Town Funchal | Charming historic district with cobblestone streets and colorful buildings. Ideal for tourists who want to experience the local culture, dining, and shopping in a picturesque setting. | Madeira Story Centre, Mercado dos Lavradores, Se Cathedral, Museu de Arte Sacra, Pico do Barcelos |
| Lido Promenade | A lively coastal area known for its oceanfront hotels, restaurants, and swimming pools. Perfect for those looking to enjoy the sun and sea while being close to the city center. | Lido Bathing Complex, Forum Madeira, Ponta Gorda Beach, Doca do Cavacas, Madeira Nature Experience |
| Monte | A peaceful hilltop area offering stunning views of the city and botanical gardens. Attracts tourists looking for relaxation, nature, and adventure with attractions like the famous toboggan ride. | Monte Palace Madeira, Botanical Garden, Cristo Rei viewpoint, Toboggan Rides, Teleferico Funchal-Monte |
| Sao Martinho | A vibrant neighborhood with a mix of local life and tourist amenities. Close to the beach and popular for families and international visitors seeking convenience and activities. | Praia Formosa, Avenida do Mar, Madeira Wine Company, Shopping saffron, Giant Garden |
| Câmara de Lobos | A traditional fishing village with picturesque views and local charm. Great for tourists seeking an authentic Madeira experience with fresh seafood and stunning scenery. | Câmara de Lobos Harbour, Church of Nossa Senhora da Luz, Bacalhau à Brás, Levada walks, Wine tasting |
| Santa Catarina Park | Located near the city center, this park area is perfect for guests wanting green spaces and views of the harbor. It’s ideal for families and those seeking leisure activities. | Santa Catarina Park, Funchal Marina, Madeira Botanical Garden, Palheiro Gardens, Café do Museo |
| Funchal City Center | The bustling heart of Funchal filled with shops, restaurants, and cultural sites. Ideal for those who want to be at the center of the action and explore the city on foot. | Avenida Arriaga, Municipal Garden, Casino da Madeira, Madeira Photography Museum, Old Town Restaurants |
| Ponta do Sol | Known for its sunny climate and beautiful scenery. Attracts travelers looking for relaxation by the sea and those wanting to explore the southern coast of Madeira. | Ponta do Sol Beach, Caminho dos Picos, Casa das Mudas, Eira do Serrado, Levada Nova |
Do you need a license for Airbnb in Funchal?
Yes, Funchal requires a license for operating an Airbnb. Current market data shows 83% of active listings maintain proper licensing, confirming this requirement. Getting licensed is an essential first step before listing your property.
Top Performing Airbnb Properties in Funchal
Sky Villa by An Island Apart
Entire Place • 5 bedrooms
Vila das Quebradas by An Island Apart
Entire Place • 3 bedrooms
Savoy Insular I by An Island Apart
Entire Place • 3 bedrooms
Vila Eucalipto by An Island Apart
Entire Place • 5 bedrooms
Casa da Pinheira Ii - By Wehost
Entire Place • 4 bedrooms
Madeira Palace I by An Island Apart
Entire Place • 3 bedrooms
Top Performing Professional Hosts in Funchal
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| An Island | 158 | $36,592,272 | 5491 | 4.60/5.0 |
| Carlota & Babi | 17 | $3,215,104 | 636 | 4.82/5.0 |
| LovelyStay | 56 | $3,159,979 | 1214 | 4.68/5.0 |
| Madeira | 52 | $1,765,142 | 812 | 4.35/5.0 |
| OurMadeira | 27 | $1,500,183 | 618 | 4.34/5.0 |
| GuestReady | 14 | $1,286,382 | 690 | 4.58/5.0 |
| Feels Like Home | 38 | $1,134,617 | 1156 | 4.60/5.0 |
| A Home In Madeira | 28 | $1,032,059 | 609 | 4.77/5.0 |
| Ole | 41 | $925,393 | 426 | 3.42/5.0 |
| Amr | 32 | $890,036 | 407 | 3.96/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Funchal
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (90.1%), with apartment & condo and house properties comprising 92.5% of inventory
- Untapped potential in others, outdoor & mobile segments (1.9% combined)
Room Capacity Distribution
Analysis of 1,957 properties in Funchal shows that 1 bedroom properties are most prevalent, making up 48.5% of the market. The market tends to favor smaller properties, with 1 bedroom and 2 bedrooms together representing 73.9% of all listings.
Key Insights
- Most common: 1 bedroom (48.5%)
- Least common: 5+ bedrooms (1.1%)
- Market concentration: 73.9% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 1,957 properties in Funchal reveals that 4 guests properties dominate the market, representing 30.4% of all listings. The average property accommodates 3.7 guests, with a clear trend towards larger guest capacities. Properties accommodating 4 guests and 2 guests make up 59.5% of the market.
Key Insights
- Most common capacity: 4 guests (30.4% of market)
- Least common capacity: 1 guest (0.4% of market)
- Average guest capacity: 3.7 guests per property
- Market concentration: 59.5% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 1,957 properties in Funchal, the most common availability pattern is 91-180 days (30.5% of properties). For actual bookings, properties most frequently secure bookings for 271-366 days (31.3% of properties).
Key Insights
- Most common availability window: 91-180 days (30.5%)
- Most common booking duration: 271-366 days (31.3%)
- Properties with high availability (180+ days): 40.5%
- Properties with long-term bookings (180+ days): 60.6%
Minimum Stay Distributions
1 Night
383 listings
21.1% of total
2 Nights
137 listings
7.5% of total
3 Nights
360 listings
19.8% of total
4-6 Nights
689 listings
37.9% of total
7-29 Nights
94 listings
5.2% of total
30+ Nights
155 listings
8.5% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 28.6%
- Mid-length stays (4-6 nights) represent 37.9% of listings
- Monthly+ stays (8.5%) suggest a stable extended-stay market
- High market flexibility with 48.4% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Consider monthly stay discounts to capture the growing extended-stay market
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Non-refundable
1 listings
0.1% of total
Super Strict 60 Days
33 listings
1.9% of total
Super Strict 30 Days
160 listings
9% of total
Flexible
232 listings
13.1% of total
Moderate
494 listings
27.9% of total
Firm
351 listings
19.9% of total
Strict
497 listings
28.1% of total
Key Insights
- Strict is the preferred policy at 28.1% of listings
- The market shows a balanced distribution between guest-friendly (41.0%) and strict (48.0%) policies
- Strong market consensus around Strict policies
- Non-refundable policies are least common at 0.1% of listings
Recommendations
- Market supports various policies - choose based on your property type and target guests
- Strong market preference for Strict policies suggests this should be your baseline
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in Jul, May, Jun, averaging 105 days
- Shortest booking windows are in Nov, Mar, Feb, averaging 70 days
- Summer shows the longest average booking window at 103 days, while Winter has the shortest at 79 days
Recommendations
- Implement dynamic pricing strategies for Summer bookings at least 103 days in advance
- Consider early bird discounts during Winter to encourage longer lead times
- Focus on last-minute booking promotions during Nov-Feb when lead times are shortest
Popular Airbnb Amenities in Funchal
Below is the distribution of amenities across listings in Funchal:
Traveler Demographics
Key Insights
- Domestic travelers make up 4.3% of total guests, indicating a mostly international-driven market.
- Primary international markets: United States (20.9%) and Germany (20.2%)
- English is the top language at 54.9%, followed by French (15.2%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 6.8%
Recommendations
- Target marketing campaigns for London and England markets
- Develop localized content for United States and Germany
- Prioritize English and French language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Funchal. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Ribeira Brava | 165 | $4,063 | $214.09 | 65% |
| Câmara de Lobos | 111 | $3,548 | $202.68 | 58% |
| Ponta do Sol | 256 | $3,215 | $174.67 | 65% |
| Santa Cruz | 455 | $3,081 | $191.37 | 58% |
| Calheta | 846 | $3,055 | $195.15 | 61% |
| São Vicente | 224 | $2,557 | $132.39 | 66% |
| Santana | 135 | $2,382 | $165.81 | 58% |
| Porto Moniz | 129 | $2,188 | $127.34 | 59% |
| Machico | 196 | $1,923 | $116.56 | 61% |
| Porto Santo | 141 | $1,811 | $197.22 | 46% |
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