Airbnb Occupancy Rates in Madeira, Portugal(October 2026)
Airbnbs in Madeira, Portugal earn an average of €36,971 per year, with a typical occupancy rate of 71% and daily rates averaging €143. There were 7,913 listings published on Airbnb in October 2026.
This analysis will dive into the market dynamics, pricing strategies, and investment opportunities for short-term rental investors in Madeira, Portugal.
Madeira Airbnb Market Map (October 2026)
Madeira Market Performance
Portugal average: 63% occupancy, €159 per night.
Airbnb occupancy rates by city in PortugalPeriod: December 2025 - September 2026
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How Often Will Your Airbnb Be Booked in Madeira?
View Demand Patterns →Occupancy rates directly impact your revenue potential. Understanding demand patterns helps you set realistic expectations and optimize your availability strategy.
The current average occupancy rate in Madeira is 71%, meaning properties are booked for about 259 nights per year. However, occupancy varies significantly based on property quality and management. Here's what you can expect:
Airbnb Occupancy Tiers in Madeira
Premium(Top 10%) | High-performing(Top 25%) | Average(Median) |
|---|---|---|
| 95% | 86% | 71% |
*High desirability & optimized availability | *Good market fit & guest satisfaction | *Standard market performance |
Seasonal Occupancy Patterns in Madeira
May, July
Highest demand and occupancy rates. Perfect for premium pricing strategies and maximizing revenue. Consider longer minimum stays and higher rates.
March, February
Moderate demand with balanced pricing opportunities. Good for attracting budget-conscious travelers while maintaining reasonable occupancy rates.
January, December
Lower demand requires competitive pricing and creative marketing. Focus on local events, extended stay discounts, and targeting specific traveler segments.
How Much Can You Earn with Airbnb in Madeira?
Calculate Earnings →One of the most common questions for potential Airbnb hosts in Madeira is about earning potential. Let's break down the revenue patterns and what you can realistically expect to earn.
Monthly Revenue Trends in Madeira
Best-in-class Airbnb properties (top 10%) in Madeira achieve around €56,360 annually, while strong performers (top 25%) earn at least €38,063. Typical properties generate about €26,245 per year. Keep in mind, these are market averages—your actual earnings can be even higher depending on your property's location, bedrooms, guest capacity, and unique amenities.
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What Can You Learn from Top-Performing Airbnbs in Madeira?
View Top Performers →Studying successful properties provides valuable insights for your own Airbnb strategy. Here are the top-performing listings in Madeira and what makes them successful.
What Should You Charge for Your Airbnb in Madeira?
Smart Pricing Tools →Pricing is one of the most critical decisions for Airbnb success. Let's analyze the current pricing landscape and help you understand what rates you can realistically charge.
The current average daily rate in Madeira is €143 per night. However, pricing varies significantly based on property quality and location. Here's what different property tiers typically charge:
Airbnb Pricing Tiers in Madeira
Premium(Top 10%) | High-performing(Top 25%) | Average(Median) | Budget(Bottom 25%) |
|---|---|---|---|
| €232per night | €154per night | €113per night | €86per night |
*Top locations, big properties, premium amenities | *Good property management, highly rated | *Standard market performance | *Basic properties, less desirable locations |
Is It Profitable to Start an Airbnb in Madeira?
Investment Analysis →Understanding the profitability potential is crucial for any Airbnb investment decision. Let's analyze the revenue performance and profit margins in the Madeira market to help you make informed financial decisions.
Revenue Performance
Profitability Factors
What Are the Airbnb Regulations in Madeira?
Understanding local regulations is crucial for operating a successful Airbnb. Let's examine the compliance landscape and what you need to know about licensing requirements in Madeira.
Rules for new hosts
Can a new host open an entire-home rental here?
Yes. Registration is required.
- November 2024Decreto-Lei 76/2024 in force: municipalities may set AL containment areas
- June 2026Funchal AL regulation (Regulamento 787/2026) in force: no new AL in the Sé parish, only independent houses elsewhere
- October 2026Santa Cruz suspension of new AL registrations across the municipality starts (date per press; up to 1 year)
- TodayNo change scheduled
- November 2024Decreto-Lei 76/2024 in force: municipalities may set AL containment areas
- June 2026Funchal AL regulation (Regulamento 787/2026) in force: no new AL in the Sé parish, only independent houses elsewhere
- October 2026Santa Cruz suspension of new AL registrations across the municipality starts (date per press; up to 1 year)
- TodayNo change scheduled
- Licence
- RegistrationNational
- Building / HOA
- Bylaws can ban itNational
- Enforcement
- MediumNational
Madeira runs its own version of the national Alojamento Local regime (Decreto Legislativo Regional 13/2015/M): the Direcao Regional do Turismo registers AL and the regional economic inspectorate (IRAE) enforces it. There is no regional cap, moratorium or containment decree, so the limits come from the municipalities. Funchal's AL regulation, in force since 30 June 2026, bars new registrations in the Sé parish and allows only independent houses in the other parishes, and Santa Cruz (Caniço) suspended new registrations across the whole municipality from about 19 October 2026 while it drafts its own regulation. Funchal, Santa Cruz, Calheta and Ponta do Sol charge a municipal tourist tax of EUR 2 per night.
Last checked October 20, 2026
This is a summary, not legal advice. Check with the local authority before investing.
Registration Numbers on Airbnb
None of the active Airbnb listings we tracked last month display a registration or license number.
This reflects what hosts publish on their Airbnb listings, not the local legal requirements. Always confirm them with local authorities.
Key Regulatory Requirements
Minimal registration requirements may apply.
- Registration numbers must be displayed on listings
- Hosts must comply with local zoning laws
- Tax collection and reporting obligations apply
- Safety standards and insurance requirements must be met
Compliance Benefits
Very low compliance barriers make it easy to start your Airbnb business.
- Avoid fines and legal issues
- Build trust with guests and neighbors
- Ensure long-term business sustainability
- Maintain listing visibility on platforms
Important: Regulations can change frequently, and requirements may vary by neighborhood. Always verify current requirements with local authorities before starting your Airbnb business.
Which Areas in Madeira Are Most Profitable for Airbnb?
Explore All Areas →Not all areas within Madeira perform equally. Let's analyze the performance of different neighborhoods to help you identify the most lucrative locations for your Airbnb investment.
Ponta Delgada
Monte
Campanário
Ponta Do Pargo
Madalena Do Mar
Seixal
Santana
Porto Da Cruz
Jardim Do Mar
Água De Pena
São Roque
Caniçal
São Jorge
Santo António Da Serra
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