Madeira & the Azores

The national planning and urban-development frameworks apply together with Madeira's regional adaptations and regional institutions. Decree-Law 555/99, which contains the RJUE, was adapted to Madeira by Regional Legislative Decree 37/2006/M; the consolidated regional diploma remains in force and should be read together with the national framework and subsequent regional amendments.

National reforms should not be assumed to apply in Madeira in exactly the same manner as on the mainland. For example, the Madeira territorial-planning authority has expressly stated that the amendment introduced by Decree-Law 117/2024 to the national land regime does not apply in Madeira.

Madeira contains protected landscapes, natural monuments, agricultural areas, forest and sensitive coastal territory. The Laurisilva of Madeira was inscribed on the UNESCO World Heritage List in 1999 and covers approximately 15,000 hectares.

The Azores have their own regional territorial-planning system, regional authorities and island-specific planning instruments. The Regional Territorial Plan for the Azores was published through Regional Legislative Decree 26/2010/A, and the Azores Territorial Planning Portal provides access to regional and municipal instruments, constraints and risk information.

The Azores use island-specific coastal-management instruments. The applicable plan should be identified for the particular island and municipality: a planning classification shown in the municipal plan should not be read without checking the applicable coastal and regional instruments.

An island property may contain substantial land but have limited practical development capacity. The residual land area should not be valued as if it could accommodate buildings.

Topography can determine the architecture, budget and programme. A hillside site should not be appraised using a standard flat-site construction cost.

In Madeira, relevant risks may include slope instability, landslides, rockfall, flash flooding, watercourse overflow, wildfire, coastal flooding, storms, high wind and seismic activity. The Madeira Regional Civil Protection Service has published a regional risk assessment covering natural, technological and mixed hazards.

In the Azores, relevant risks may include earthquakes, volcanic activity, ground deformation, gas emissions, landslides, coastal flooding, storms, tsunami exposure and erosion. Use the Azores natural-hazard portal, CIVISA monitoring and Civil Protection information.

Island development frequently involves coastal locations. A short distance from the sea can materially affect both construction cost and lifecycle cost.

A nearby pipe does not prove that the network can receive the project's demand.

On smaller islands, a material project may represent a significant new load. Written capacity evidence should be obtained before the project budget is fixed.

Island access constraints can be more important than distance. A site can be suitable for a completed house while being exceptionally difficult to construct.

Island construction involves a supply chain that should be modelled independently. The development programme should contain logistics float.

Island hotels and tourism projects should be designed around their operating environment. The room count should not be fixed without testing whether the project can recruit and house the required team.

Permanent housing, international purchasers, second homes and managed residences require different specifications, service structures and sales strategies.

Island properties may contain old houses, agricultural buildings, stone structures, warehouses, heritage buildings or partially completed development. A building can appear habitable while requiring substantial structural and envelope works.

Heritage constraints can create value through scarcity and identity, but they may also increase design time, specialist fees, construction cost, approval time and maintenance. The financial model should reflect both effects.

Conditions can change substantially over short distances. In Madeira, south-coast and north-coast conditions may differ materially, and altitude can change temperature, cloud and visitor appeal. In the Azores, weather patterns and exposure vary between islands and between coastal, urban and elevated locations.

Island projects require a valuation approach that reflects the specific exit market. On a smaller island, comparable transactions may be limited, marketing periods may be longer, buyers may require greater discounts, refinancing may be more difficult and lender valuations may be conservative.

The autonomous regions may apply regional rates, adaptations, incentives or support programmes in defined circumstances. Eligibility, substance, activity, location and implementation must be reviewed before a tax benefit is included in the financial model.

Decree-Law 108/2026 introduced a substantial revision of the national RJUE framework, and its entry into force was postponed to 1 October 2026 by Decree-Law 155-B/2026.

Planning and infrastructure information must be verified for the specific property before reliance.