With the Portuguese economy on its knees, the island of Madeira is doing all it can to attract new investment and increase tourism and there are signs that it s working.
The latest data supplied by holiday rental portal HolidayLettings.co.uk, part of TripAdvisor, reveals that there was a 28 per cent rise in the volume of enquiries for holiday homes in Madeira during the first five months of this year compared to the corresponding period last year.
Commenting on the rise in demand for holiday properties in Madeira, Kate Stinchcombe-Gillies, spokesperson for holidaylettings.co.uk, said: "Madeira seems to be having a bit of a spike this year. It's not somewhere we've ever seen much inventory growth and consumer demand doesn't match that which the wider appeal of Portugal draws, but it's doing well."
Tourism in Madeira suffered last year, after the island was hit by torrential rains causing floods, mudslides and widespread devastation.
But Stinchcombe-Gillies says that the island has "coped and recovered well since the floods" and now appears to be on the road to recovery.
Michael Nascimento, head of Madeira property investment firm Morgan Forbes, agrees that demand for homes in Madeira has improved from a low base since the floods.
"Whether a long term domestic let or a series of short term rentals to tourists, there are some high rental returns achievable in Madeira."
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