Funchal Ten Villas – Sea-View Homes on Palheiro Ridge in Madeira

Masterplan drawing of ten villa hillside development with internal road and plots marked in red

Funchal – Ten Villas on Palheiro Ridge

Ten-view villas on São Gonçalo / Palheiro ridge with panoramic Funchal Bay views

Ten-villa residential development on the sun-exposed São Gonçalo / Palheiro ridge, overlooking Funchal Bay and the Atlantic. The site offers an amphitheatre-like setting with layered plots stepping down towards the view, combining privacy, open panoramas and quick access to the city centre and marina.

The concept focuses on modern villas in the upper-mid to prime segment, with clean architecture, generous glazing, deep terraces and optional infinity pools. Internal access road, on-plot parking and curated landscaping make the enclave function as a private “villas-only” neighbourhood within minutes of Funchal’s main urban amenities.

Deal at a glance
CAPEX (pre-financing) € 12.45M
EBITDA (one-off) € 7.80M
GDV (revenue) € 20.25M
EBITDA margin on GDV ≈ 38.5%
ROI on CAPEX ≈ 62.7%
Luxury living room with large sectional sofa, crystal chandelier and indoor plants by full-height windows
Minimal white marble kitchen with island, bar counter and three teal bar stools
Spacious living room with modular sofa, round chandeliers and city view through floor-to-ceiling windows
Marble bathroom with freestanding bathtub, wall-mounted vanity and soft palm-leaf wall mural
Bathroom with terrazzo tiles, blue shower wall and built-in bathtub with LED underlighting
Reading corner with curved upholstered chair, floor mirror and marble floor by full-height window
Dining area with round wooden table, upholstered chairs and sculptural chandelier in front of tall windows
CAPEX components pie chart showing cost structure for villa development project

Project overview

The project envisions ten detached villas positioned along an internal road on the hillside, all oriented towards Funchal Bay. Each villa offers private garden space, optional pool, open-plan living areas and large glazed facades capturing the view.

The product is designed for international and local buyers in the upper segment: families relocating to Madeira, second-home buyers and investors seeking a liquid, high-demand asset in a limited-supply location. Layouts and plot sizes can be tuned to mix 3–5 bedroom villas with flexible basement and garage options.

Highlights

  • South-facing ridge with panoramic views over Funchal Bay and the Atlantic.
  • Ten modern villas with optional infinity pools and generous terraces.
  • Private internal road and on-plot parking, ready for EV charging setup.
  • Upper-mid to prime segment with strong owner-occupier and second-home demand.
  • Short drive to Palheiro Golf, Funchal old town and the marina.

Location & positioning

The São Gonçalo / Palheiro ridge is one of Funchal’s most attractive residential view corridors, combining altitude, sun exposure and quick access to the city. Most of the surrounding stock is fragmented and built out, which increases the value of a coherent ten-villa masterplan on a single plot.

  • Gross plot area: 8 405.27 m².
  • GFA (built): 3 000 m².
  • NSA (sellable): 2 700 m² (efficiency ≈ 90%).
  • Average pricing assumption: € 7 500 /m² (NSA).
  • Land price: € 2 600 000 (≈ € 309/m² gross land).
Sunset panoramic view over Funchal Bay and the Atlantic Ocean from hillside road in Madeira