The Portuguese islands hide a unique way of life, rich in nature, surrounded by the Atlantic Ocean and blessed with an exceptional climate. Perhaps this is why many families, both Portuguese and foreign, are looking for homes to buy in the archipelagos of Madeira and the Azores. But those seeking luxury properties in these island markets will find a more limited geographical offer, mostly concentrated on Madeira Island and São Miguel Island, as shown by data from idealista.

It is mainly Portuguese citizens who are drawn to the natural beauty, climate, and quality of life of the Portuguese islands, representing more than half of the housing demand overall – whether luxury or not. But those living abroad also show significant interest, especially in the Azores.

All nine islands that make up the Azores archipelago registered international demand for houses for sale above 40% in the third quarter of 2025, according to data from idealista/data. Moreover, on the islands of Corvo, Pico, Santa Maria and Flores, foreign interest even surpassed national interest, standing above 50%. Most international searches for homes to buy in the Azores come from the US, Germany, and Canada.

International demand for houses for sale is also quite significant on Madeira Island, representing around 47% of total demand in the summer of 2025. But on Porto Santo Island, it is much lower (almost 26%). In this autonomous region, international searches come mostly from Germany, the United Kingdom, and the US, in that order.

Demand for homes for sale in the Portuguese islands
Data from Q3 2025
Share of demand for houses for sale from abroad and from Portugal in each island

Foreign | National
Flores – 59.0% | 41.0%
Corvo – 56.6% | 43.4%
Santa Maria – 53.7% | 46.3%
Pico – 51.5% | 48.5%
Graciosa – 49.1% | 50.9%
São Jorge – 48.4% | 51.6%
Madeira – 47.1% | 52.9%
Faial – 45.2% | 54.8%
São Miguel – 41.9% | 58.1%
Terceira – 40.9% | 59.1%
Porto Santo – 25.7% | 74.3%

Source: idealista/data

Where are the most luxury homes located in the Portuguese islands?

Families and investors (Portuguese or foreign) looking for luxury homes for sale in the Portuguese islands – those priced above one million euros – will find limited supply, both in terms of typology and location. Here’s why.

Firstly, luxury apartments are scarce on the islands. There is only a significant offer of premium apartments on Madeira Island (around 370 units), with a median price of €1.58 million. In addition, only five luxury apartments were recorded on São Miguel Island (Azores), with a median price of €1.35 million. In the remaining island markets, there are no luxury apartments on the market.

Therefore, most luxury homes for sale in the Portuguese islands are houses, totalling more than 1,300 units. But 98% of this supply is again concentrated in just two islands (the largest and most prominent), according to the same idealista/data report:

  • Madeira Island: has 1,200 premium houses for sale, 49% more than a year earlier. This increase in stock appears to have eased demand pressure, which cooled by 30% in the last year. Median prices also fell slightly (-3%), reaching €1.82 million at the end of September.

  • São Miguel Island: recorded 89 luxury houses for sale in the summer of 2025, an increase of 78% compared to the same period the previous year. This rise in supply relieved demand pressure (-45%). However, median prices rose 10% in one year to around €1.5 million, which may indicate that more expensive premium homes entered the market on this island.

Luxury houses for sale on Madeira and São Miguel Islands
Data from Q3 2025
Median price of luxury homes in euros
Year-on-year variations

  Madeira Island São Miguel Island (Azores)
Stock (number) 1,200 89
Stock variation 49% 78%
Median price (euros) 1,818,488 1,483,933
Price variation -3% 10%
Demand variation -30% -45%

Source: idealista/data

In the remaining Azorean islands and on Porto Santo Island (Madeira), the supply of luxury houses is very limited, equal to or below 10 properties in the third quarter of 2025. This premium sample is therefore too small to provide a representative analysis of supply, demand, and price trends.