Madeira’s pretty capital Funchal has long been overlooked, says MARC DA SILVA

Renowned for its cake, wine, flowers and sub- tropical climate, Madeira has long attracted tourists all year round. However, the Portuguese island’s historic capital city Funchal is often ignored as a place to buy a holiday home.
Just under half of Madeira’s population of approximately 250,000 inhabitants live in Funchal. The city offers a calendar of cultural events and festivities for tourists and locals alike, including a carnival plus flower, wine and jazz festivals.
Funchal attracts around one million tourists a year, primarily from Britain, Germany and mainland Portugal. They are drawn by the long stretch of harbour full of fishing boats, the fine selection of botanical gardens, the colourful market and array of old streets filled with stylish boutiques and restaurants offering traditional Portuguese cuisine.
“A lot of people would feel very comfortable owning property in Madeira,” said Robin Stickells, of Madeira Properties in the Sun. “[Funchal] offers an international, cosmopolitan community that has its fair share of local residents, too. Madeira appeals to those who see this as a good thing.”
Mr Stickells added: “The big challenge is to find the purchasers who are in the market to buy a home.”
Although Funchal’s domestic property market is well-established, only a small fraction of overseas nationals own holiday homes there.
Hotel occupancy levels averaged 90 per cent during April’s Flower Festival, according to official government statistics. However, there are signs that Funchal’s holiday home market is starting to take off, buoyed by the introduction of low-cost airlines and direct flights from around Europe, Venezuela and South Africa.
Steven Worboys, of Experience International estate agency, said: “With more than one million tourists visiting this pearl of the Atlantic each year requiring accommodation, opportunity abounds for the buy-to-let market.”
In fact, enquiries for short-term rental properties in the capital increased by 52 per cent during the first three months of 2010, according to searches on holiday rental firm HomeAway’s website.
With protected conservation land making up some 70 per cent of the island, which is reasonably compact at 35 miles in length by 14 miles at its widest point, most property buyers head for Funchal.
Indeed, Funchal is where property prices are highest but the greatest buy-to-let opportunities in Madeira are to be found.
Resales typically start from around £110,000, which buys a modern one-bedroom apartment or an old-fashioned house in need of renovation or reconstruction.
Although Madeira’s property market has not gone unscathed by Portugal’s financial turmoil, the adverse economic effect on the island has been less severe than on the mainland, according to various local experts.
Philippe Moreau, the project manager of Vilagiorgi, a high-end holiday home development under construction in Funchal, said: “Due to the limited residential inventory, the Madeira property market has not suffered as much as mainland Portugal.
“Prices have not necessarily dropped but sales have been at a standstill for more than a year. More sales enquiries are starting to appear again, though.”
Roger Still, of Palheiro Estate, said: “Madeira is a fresh, new entrant into the second home market. Property prices compare well with other markets. Most of the ingredients necessary for a second homes market to establish itself in Madeira have long existed, including good location, climate, natural beauty, living conditions and visitor infrastructure.”
Mr Still was enthusiastic about acknowledging the progress made in Madeira over the past 10 years. The expansion of the international airport and a network of new roads, tunnels, marinas and health facilities have all set the scene for what he described as “the emergence of a viable second homes market”.
Madeira’s hot summers and warm winters, with temperatures averaging 21C, are ideal for avid golfers. This inspired an 18-hole,  par-72 course on the Palheiro Estate, along with a selection of luxurious holiday homes.
Palheiro was arguably the fi rst high-end residential projection conceived, designed and constructed to suit the requirements of the second homes market in Madeira. Inaugurated in late 2008, it rivals some of the best golf-led property developments of the Algarve but at a fraction of the price.

Palheiro Estate:  www.palheiroestate.com

This article authored by Marc da Silva (Daily Express) From Wednesday 1st September, 2010

Madeira is bouncing back. After February’s devastating floods, it is on a fresh drive to attract second-home buyers from Britain.

Madeira is a small island — just 30 miles long — with 250,000 residents. Located 600 miles south-west of Portugal and 360 miles off the african coast, it enjoys year-round warmth.

It has long been a favourite with Britons, especially retirees, who love its lush gardens, hillside walks along the lavadas waterways, and spectacular views from steep volcanic mountains.

The island is officially Portuguese and British tourists account for about a fifth of the 900,000 foreign visitors who arrive by air each year and the 450,000 arriving on cruise ships.

They also make up the bulk of the foreign buyers of holiday homes.

In February, Madeira hit the headlines when flash-floods and mudslides took the lives of more than 40 islanders.

Severe storms battered the south of the island and bulldozers were required to clear mud from the streets of the old capital, Funchal.

Bridges were swept away and the airport was closed. The world’s most famous Madeiran, real Madrid football star Cristiano Ronaldo, even played a charity match on the island to raise money for the relief effort. it’s estimated this will cost about £1.2bn.

However, only three months on, transport and communications are back to normal, emergency homes have been built for locals who lost their properties and easyJet has resumed flights from Britain.

Buoyed by funding from the local authorities, the island’s estate agents are advertising in the UK and worldwide to tempt foreigners back.

Much of Madeira’s property history is tied up with the British Blandy family. John Blandy, who first visited Madeira in the early 19th century during the Napoleonic wars, later returned to establish his legendary wine business.

By the end of that century, his descendants had become one of the largest exporters of Madeiran wine and built a vast family estate on the island.

This estate, Palheiro — still run by the Blandy descendants, who also own several other businesses across the island — has been the scene of some exciting new holiday home developments.

In 1993, the 18-hole par-72 Palheiro golf course, designed by US golf architect Cabell Robinson, opened. it’s set in what used to be the estate’s hunting grounds.

The course was redesigned in 2003 and entered the list of Europe’s top 100 courses a few months ago in Golf World magazine.

Meanwhile, in 1997 a country house on the estate was transformed into the fivestar Casa Velha do Palheiro hotel.

The estate is home to new residential developments in what has become known as Palheiro Village.

‘Buyers can select plots on which villas or apartments can be built according to one of a variety of design options under either freehold or fractional ownership,’ says a spokesman for the Palheiro Village resort.

Designed by the algarvebased architect Michael Brown, all Palheiro Village homes have panoramic views over the Bay of Funchal and the atlantic Ocean.

A second scheme of new housing can be found on the Ponta de São Lourenço peninsula, home to the 16-hectare Lorde resort, a ten-minute drive from Funchal airport.

The houses capture the charm of a Madeiran seaside village; there are 127 one, two and three-bedroom villas and apartments on a scheme laden with restaurants, bars and shops, plus a marina boasting berths for 264 vessels.

Modern homes aren’t the only properties on offer.

In Funchal, where prices have fallen 20% from their 2007 peak, you could get a 70-year-old hillside villa for some £200,000, rising to £350,000 in the centre of the town, where a few small apartments cost £100,000 each.

In the north of the island — about 35 minutes from Funchal by motorway — there are large villas for about £225,000.

Although there are several new schemes of holiday homes to complement the stylish period property on the island, scope for future development is limited. Some 67% of Madeira is designated as protected land and national forest.

On many other areas, particularly the steep hills, building work cannot be undertaken and there are increasingly restrictive planning rules being introduced. as a result, there is unlikely to be substantial numbers of new-builds.

‘There are two options for financing a second home in Madeira,’ says Simon Smallwood, of international Private Finance, a mortgage firm specialising in helping Britons buy overseas

‘You can raise the money against your primary UK residence. The downside is that you will be raising funds in sterling and then need to transfer the money into euros, which will be expensive because of the current exchange rate,’ he says.

‘Or you can have a Portuguese mortgage, borrowing in euros on a mortgage secured against the property in Madeira. Portuguese lenders have historically been more cautious than lenders in the UK so are in a much stronger position, post credit crunch.’

Britons can buy on the island without restriction, but must pay 5% to 8% of purchase price in transfer tax and notary fees. Holiday home running costs include an annual tax of 0.2% to 0.8% of the home’s value.

Madeira has no inheritance tax and VaT is just 14%, but capital gains tax of 25% is payable on profits when you resell the home.

So if you want a warm welcome in the island known as The Floating Garden of the atlantic, Madeira might be the answer.

International Private Finance (020 7484 4600, internationalprivate finance.com).

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This article from Graham Norwood - 14 May 2010 - http://bit.ly/c9SXq7

Palheiro, the multifaceted resort development on the Blandy family estate in Madeira, is offering a unique property package for golfing enthusiasts.

With pleasant weather year-round, Madeira attracts golfers from across the globe to play at the island’s two golf courses. One of which is Palheiro, a Cabell Robinson designed, 18 hole par 72 golf course situated on the Palheiro Estate. The course, which opened in 1993, was imaginatively redesigned in 2003 and was included in Golf World’s 2009 list of Europe’s top 100 golf courses.

Located in an elevated position overlooking the Bay of Funchal, the 130 hectare Palheiro Estate was originally an early 19th century hunting lodge. The estate now boasts a world famous 18 hole golf course, the five-star Casa Velha do Palheiro hotel with a spa, award winning Palheiro gardens as well as Palheiro Village - a private development of 79 luxury villas and apartments.

Property prices range from €325,000 for a one-bedroom apartment to €1.15 million for a three-bedroom villa complete with a private swimming pool.

Included within the selling price, golfing enthusiasts buying at Palheiro will enjoy:
•    Entrance fees and full membership to the Palheiro golf club for three years (equivalent value €13,248)
•    All purchase completion costs paid for (excluding legal fees)
•    All development charges paid for the first three years

In addition, Palheiro offers a superb property management service and an established and successful rental programme which is available to prospective purchasers.

Palheiro golf course runs a number of golfing days throughout the year which are available to golf club members and their guests including: the Moynihan’s Open in January, Royal Savoy Classic and Palheiro open in June, October fest golf week and Anniversary Salver in October.

For more information on property at Palheiro, please contact: Palheiro Real Estate, Tel: + 351 291 794 015 or visit:  www.palheiroestate.com

Palheiro Estate publish their new Real Estate flyer in English, Russian and Portuguese.

“Located on a prime hilltop site overlooking Funchal, the capital of Madeira, the 130 hectare Palheiro Estate has grown from an early 19th century hunting lodge and summer retreat for nobility into a sophisticated resort destination.
•  Spectacular 18-hole Palheiro Golf course, complemented by a golf academy  and clubhouse with bar, restaurant and terrace offering panoramic views of the harbour and Funchal city
•  5-star country house hotel, Casa Velha do Palheiro, a member of Relais &  Châteaux, offers 37 luxurious rooms, a haute cuisine restaurant, library and  terrace overlooking the Palheiro Gardens
•  Palheiro Spa boasts a hydro pool, treatment rooms, gym, sauna and steam room
•  Palheiro Gardens, famous for the diversity of trees and plants from around the world
•  Motor yacht Balancal, moored in Funchal marina,  available for dolphin and whale-watching or deep-sea fishing”

For more information and to receive a brochure via email contact www.palheiroestate.com

Fractional freehold has been gaining in popularity in recent years, and the Palheiro Village scheme is proving to be a great example of how buying a portion of a property can work.

Golf and property journalist Peter Swain explores the concept of fractional freehold in an article in today’s Daily Express (UK) newspaper. After giving some tips for buyers, he mentions three “good value” schemes, one of which is Palheiro Village that he writes “works well”.

Peter highlights some of the fantastic characteristics of the resort, stating that “semi-tropical gardens and a boutique hotel complement the spectacular Palheiro golf course.” The clubhouse’s “brilliant cooking” and “superb view”, plus the “world-class” marlin fishing nearby are also noted.

Fractional freehold at Palheiro has been praised a number of times, and was awarded silver for Best Fractional Ownership Scheme 2008 the prestigious Homes Overseas Awards.

You can get more details about this method of buying at: http://www.palheiroestate.com/lang-en/property/fractional-freehold.html

Thanks to the appealing climate and increasing range of year-round outdoor activities, Madeira has been expanding its appeal to families in recent years.

Roger Still, who lives on Madeira with his wife Lizzie and daughter Lara, says:  “When we moved here 18 months ago, we weren’t sure how Lara would settle – but we’ve all acclimated very quickly thanks to the huge range of activities available year round.   Opportunities here for families are terrific.

“Lara particularly enjoys the Saturday morning girl’s golf lessons held at the Palheiro Golf Course. They are very popular, with around 20 girls attending each week.”

The long coastline provides a range of water sports including surfing, fishing, sailing and snorkelling.  Dolphin spotting boat trips are another great day out.

The lush interior has a winding network of levadas for walking explorations of the islands flora and fauna.  Mountain biking is another popular activity.

The annual festivals are a highlight for families, particularly the fireworks displays on New Year’s Eve and during the Atlantic Festival in June.

During the Festival of the Flower in April, thousands of children gather to place a flower at the Municipal Square to make up the floral “Wall of Hope” (Muro da Esperança).  This festival also offers classical concerts and live folk music.

A deer park, an ecological park, a farmyard zoo (Prazeres), the Story Centre and the Santana theme park with a mix of Madeiran history, tradition and culture, are sure to keep children of all ages entertained for hours.

For families interested in a longer stay, the two international schools – the British School of Madeira and International School of Madeira – compliment a range of state primary and secondary schools.

Palheiro Village, overlooking the capital city of Funchal, provides the prefect place to explore the delights of Madeira. Or, to take in the sweeping views of the ocean and relax at the pool bar while the children enjoy swimming in the Village Forum pool.

Both long and short stays are possible – with villas and apartments available to rent or buy.

A family sized three-bedroom villa, with well designed indoor/outdoor flow to terraces overlooking the ocean, is available for €690,000.

Fully furnished villas are available to rent from €1,450 per week, providing the perfect family holiday for all ages.

For more information, please contact Palheiro Village on + 351 291 794 015 or visit:  www.palheiroestate.com

Read about Palheiro Estate in an article that was printed in yesterday’s Sunday Times -  The article is about the merits of buying a villa within a resort, and it is stated that “in a beautiful spot on the island of Madeira is the 200-year-old Palheiro Estate”. Owners David and Elizabeth Vine are quoted and a picture of the Palheiro Forum is used to illustrate the piece.

The estate is compared to some of the most exclusive developments around the world, including the new Club Med Mauritius and the Four Seasons in Seychelles, highlighting the quality and wide appeal of the resort.

Madeira Wine Rally (Rali Vinho Madeira)
Madeira Sports Club (Club Sports da Madeira) is organising the traditional and already famous Madeira Wine Rally, which celebrates its 50th anniversary in 2009.(more)

Funchal Jazz
The tenth edition of Funchal Jazz Festival, an initiative taken by the City Hall of Funchal, will be held from 2nd to 4th July at Parque de Santa Catarina.(more)

Sata Internacional with two direct flights to Poland
In summer 2009 Madeira will have an additional weekly direct flight from Poland as a result of the commercial agreement between Sata Internacional and the Polish tour operator Itaka.(more)

IWC organises annual conference in Madeira
From 29 May to 26 June 2009, the International Whaling Commission will hold its 61st annual meeting in the city of Funchal, drawing attention to the Region of Madeira and highlighting its environmental and touristic attributes.(more)

Madeira to have 20 Blue Flag beaches in summer 2009
This year 20 beaches in the Autonomous Region of Madeira will be given the prestigious award of “Blue Flag” (five more than in 2008).(more)

World Press Photo
The photojournalism works, which were awarded at World Press Photo 2008 will be exhibited between 1st and 23rd July at the Noble Room of the Municipal Theatre (Salão Nobre do Teatro Municipal) Baltazar Dias, in Funchal.(more)

Madeira Specialist - Stage 2 of the Programme starts in January
5 January 2009 The first stage of the Madeira Specialist programme, which greatly exceeded all expectations, has been completed. Stage 2 starts on 5 January 2009. At the pre-registration stage, there were around 80 applicants for this on-site or distance training course involving specialisation in the tourism services offered by the Madeira Islands. Over time, it became firmly established and by the end of the first stage, 250 professionals had enrolled and were completing the programme, which was a pilot programme in the country.(more)

First Madeira Gourmet Food Festival (Festival Madeira Gourmet) to be held in November
From 3 to 7 November 2009, the first Madeira Gourmet Food Festival will be hosted by the Commercial and Industrial Association of Funchal - Chamber of Commerce and Industry of Madeira (Associação Comercial e Industrial do Funchal - Câmara de Comércio e Indústria da Madeira), in partnership with the “World Gourmet Club”.(more)

Casa Velha do Palheiro opens Palheiro SPA
In May a new section of the Palheiro Estate complex was opened, Palheiro Spa, which joins Palheiro Gardens, Palheiro Golf and the Inn Casa Velha do Palheiro.(more)

New Madeira Menu Website
A new online research tool has now been made available in the Region, to help search the many restaurants which Madeira has to offer.(more)

Madeira participates in the Big Game Fishing Championship 2009
Madeira’s ocean is a teeming nursery for a wide range of aquatic life that attracts many big game fishermen looking for the time of their life. Reeling in a Marlin is the dream of any Big Game Fishing enthusiast.(more)

Innovative ways of promoting Madeira
Following a partnership between Apple and the company “Wow!Systems”, the “iPhone” allows users to see panoramic photos of Madeira (except Porto Santo, for the time being), providing them with information about the photographed place.(more)

Cristiano Ronaldo is the best footballer in the world
FIFA (the International Federation of Association Football) has crowned the Portuguese international footballer, Cristiano Ronaldo, the best player in the world in 2008.(more)

Madeira Wine and Embroidery on display at Madeira Airport
On 29 April, Madeira Airport, in conjunction with the Madeira Wine, Embroidery and Handicrafts Institute (Instituto do Vinho do Bordado e Artesanato da Madeira), inaugurated an exhibition dedicated to Madeira embroidery and wine.(more)

New attractions at Madeira Theme Park
Madeira Theme Park, in Santana, has introduced a set of entertaining and educational activities, both in pavilions and outdoors, in order to promote a better cultural and historical knowledge of Madeira Archipelago. Within this scope it will also include new attractions from summer 2009.(more)

Overseas Promotional Actions by Madeira Promotion Bureau
Madeira Promotion Bureau (AP Madeira) launched another campaign to promote Madeira in Europe, this time particularly in the city of Vienna, by making use of audiovisual techniques.(more)

Green Fresh week
From 2 to 9 July From 2 to 9 July, the company Fresh Produções, will promote “Green Fresh Week”, a sui generis initiative in partnership with Madeira Shopping and FNAC. In addition to a musical component, this event will have other very interesting activities. Hosted by Estalagem “Quinta da Rochinha”, in Ponta de Sol, and the Baía do Sol Hotel, the philosophy of the event is the “Fresh” spirit, where environmental awareness, relaxing in nature and pure enjoyment come together with an urban lifestyle.(more)

Regatta of Traditional Madeiran Canoes
12 July The bay of Funchal shall be the venue for the 6 th Edition Regatta of Traditional Madeiran Canoes, to occur on 12 July at 12 am.(more)

Blooms are everywhere at the Palheiro Gardens…something that’s not been missed by Jet Away magazine, the inflight magazine of Jet2.com. The island’s reputation as a “floating garden” is highlighted in a small article, along with the annual flower festival and Palheiro’s impressive gardens. The piece suggests that “property buyers should also be celebrating as Madeira continues to be tipped as a great investment opportunity.” We have to agree…

Article by Tara Loader Wilkinson - www.wealth-bulletin.com

Madeira, the Portuguese island best known for its rich flora and fauna and as the birthplace of world footballer of the year, Cristiano Ronaldo, may soon be making a name for itself as a tax haven.

Entrepreneurs in the UK who are threatening to quit the country as a result of the latest tax changes targeting wealthy business owners are considering Madeira as a destination, alongside more predictable off shore centres such as Switzerland and the Channel Islands.

As well as a balmy climate, the island boasts an attractive 3% corporation tax and a double tax treaty between Portugal and the UK. Trevor Nicholson, a director at HSBC private bank, says: “The impracticality of moving countries is not justifiable for many of the UK’s wealthy. Instead, we’re getting a growing number of queries about the possibility of basing a small part of the business in Maderia, where there is no tax on dividends and personal and corporation tax is low.”

Madeira’s regime applies to new companies licensed and established in its International Business Centre to 2020. Companies also get exemption from withholding taxes on the distribution of dividends, royalties and interest payments.

Nicholson says owners of hedge funds and property companies are particularly interested in Madeira’s tax benefits.

High-profile hedge fund manager Crispin Odey and private equity boss Guy Hands recently added their voices to the chorus of wealthy business people threatening to leave the UK.