Step into the charm and atmosphere of Funchal’s famous Zona Velha with this beautifully refurbished T1+1 property, perfectly positioned in the heart of Madeira’s historic old town.

Blending authentic Madeiran character with modern comfort, this property presents a rare opportunity to own a home in one of the island’s most desirable and walkable locations. Whether you are searching for a full-time residence, holiday home, or turnkey investment property, this home offers lifestyle, convenience, and excellent rental potential.

A major advantage of the property is its transferable Alojamento Local (AL) license, allowing the future owner to continue operating the property as licensed holiday accommodation. With tourism in Madeira continuing to grow year after year, particularly within Funchal’s old town, this creates an outstanding investment opportunity with proven rental income potential.

The property underwent a full refurbishment just four years ago and has been carefully modernised while preserving the charm expected from a traditional Zona Velha home. It benefits from air conditioning throughout and operates on a fully electric system.

The main living level features a bright open-plan layout where the kitchen, dining area, and lounge flow seamlessly together, creating a welcoming and functional living space ideal for both everyday living and guest accommodation. Just off the living area is a covered internal courtyard, offering a peaceful outdoor extension to the home where you can enjoy Madeira’s mild year-round climate in privacy.

A modern shower room with clean contemporary finishes is also located on this level.

Downstairs, the lower level offers a generous double bedroom together with a second lounge area, which could easily function as a guest bedroom, office, TV room, or additional sleeping area depending on the future owner’s needs.

The current owners have successfully enjoyed the property both as a private residence and as a profitable holiday rental investment. As their family has grown, they are now moving to a larger home, creating an excellent opportunity for the next owner.

What truly sets this property apart is the location.

Situated in the centre of Funchal’s iconic old town, almost everything is accessible on foot. The famous Mercado dos Lavradores, known for its traditional fish market, tropical fruits, flowers, and local produce, is just moments away. The area is surrounded by restaurants, wine bars, cafés, bakeries, and some of Madeira’s best dining experiences.

The renowned Funchal Cable Car is also within walking distance, offering direct access up to Monte, one of Madeira’s most visited attractions, famous for its tropical gardens, breathtaking views, historic church, and traditional wicker toboggan rides.

The seafront promenade, marina, Atlantic Ocean, swimming areas, and nearby beach facilities are all close by, allowing residents and guests to fully embrace Madeira’s outdoor lifestyle. Bus stops and public transport links connecting to the rest of the island are also conveniently located nearby, making it easy to explore Madeira without requiring a car.

Dating back to the 15th century, Zona Velha is considered the birthplace of the city of Funchal. Today it remains one of the island’s most culturally rich neighbourhoods, known for its cobbled streets, historic architecture, vibrant atmosphere, painted doors along Rua de Santa Maria, art galleries, and authentic local character.

Properties with transferable AL licenses in this location are becoming increasingly rare, particularly those already refurbished and ready for immediate occupation or continued rental operation.

Whether as a permanent residence, lock-up-and-leave holiday home, or income-generating investment, this property offers the unique opportunity to own a piece of Funchal’s historic heart while enjoying one of Madeira’s most vibrant and desirable locations.