Investment Property in Funchal

Funchal property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Funchal .

The financial stability of Funchal has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Funchal

Renting out your Funchal buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Funchal are – preparation is key.

• Set goals based on how much rental yield will be required and the local rental yield rates in Funchal and be prepared to change your initial outlook.
• Thoroughly research the Funchal location with a special emphasis on fringe areas outside the main Funchal metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Funchal.
• Ensure that your target investment property in Funchal appeals to professionals. This is a demographic that ensures maximum income and low voids.
• Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

With our expert guidance, investing in Funchal provides the secure knowledge that your money is working harder than it would in a local Funchal bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Funchal, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Funchal property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping property in Funchal

Flipping property is when we advise clients to buy a Funchal property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Funchal market has a time to react to the renovation.

The Flipping Strategy in Funchal

Investment property flipping in Funchal is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Funchal real estate investments are sometimes referred to by professionals as ‘distressed’ Funchal real estate.

What is distressed Funchal property:

• Funchal property in need of renovation
• Funchal real estate with a change of purpose and use
• Oversold Funchal property
• Bank repossessions in Funchal

Put simply, long term investors in Funchal purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Funchal investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Funchal property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Funchal use a minimum profit value of 22% when looking at potential Funchal projects.

The reason for this is because there are lots that can go wrong in Funchal property flipping and working on a potential margin of 22% should still leave a good margin of error.

Invest through a Fund in Funchal

Property Secured Investments is a Private Equity fund that invests in Funchal and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

For luxury property investors hoping to add a superb property in Funchal to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Funchal, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Funchal should be entrusted to only the highest-quality agency.