Madeira, Funchal, Portugal

Discover an exceptional property in the heart of Funchal – a four-story building with immense potential for renovation and versatile use. The property offers the opportunity to create between 6 and 10 spacious apartments, complemented by an attractive commercial space on the ground floor. This offer is aimed at investors seeking a prime opportunity to invest in Funchal’s historic downtown and benefit from a high return on investment.

Nestled on Rua da Carreira, one of Funchal’s oldest and most historic streets, the building is located in one of the city’s most sought-after areas. The charming pedestrian zone, renowned for its architectural diversity, is surrounded by exclusive boutiques, popular restaurants, cafés, and cultural venues. The central location ensures high foot traffic, making the property ideal for commercial or mixed-use purposes. The La Vie Funchal shopping center, the marina, and the Sé Cathedral are just minutes away, further enhancing the appeal of this property.

An additional advantage for investors is the property’s location in the ARU Zone (Área de Reabilitação Urbana). This zone provides not only numerous tax benefits, such as a five-year IMI exemption and IMT exemption for renovation projects, but also financial incentives for modernizing and revitalizing properties.

Detailed Building Description

Basement (Floor -1):
• 2 spacious rooms, ideal for storage or technical areas
• Additional features: 1 WC and 1 shower

Ground Floor (Floor 0):
• Large reception area with windows
• 2 spacious rooms with plenty of natural light
• Kitchen with a window
• 2 separate WCs

Usage ideas: Generous commercial space for retail or gastronomy, ideal for conversion into 2 spacious apartments.

First Floor (Floor 1):
• 4 large rooms with windows
• 2 smaller rooms without windows
• 1 WC
• Covered terrace with views of the inner courtyard

Usage ideas: Potential to create 3-4 apartments, ideal for tourist accommodation.

Second Floor (Floor 2):
• 3 large rooms with windows
• 2 smaller rooms without windows
• 1 WC
• Spacious balcony with views of the inner courtyard

Usage ideas: Space to create 2-3 additional apartments.

Third Floor (Floor 3):
• Rooftop terrace with spectacular views over the city and the harbor

Usage ideas: Transform into a luxury rooftop terrace with a pool, BBQ area, or rooftop garden, or add 2-3 additional apartments with an expansion.

Special Features:
• Elegant façade with a spacious entrance area
• High ceilings and large windows for bright, airy rooms
• Flexible terraces and balconies suitable for various uses

Condition of the Building:
Currently, the building is used as office space and offers numerous opportunities for redevelopment due to its solid structure. The façade is in good condition, highlighting the historical charm of the property. Overall, the building provides a stable foundation for a complete modernization that meets current standards and future usage requirements.

Investment Potential and Benefits:
Invest in a unique property located in the heart of Funchal’s historic center, one of the city’s most sought-after pedestrian zones. This central location combines cultural charm with economic potential, providing the perfect foundation for a profitable investment.

The property is situated within an ARU Zone (Área de Reabilitação Urbana) – an urban rehabilitation area specifically designed to encourage investment in historic buildings. In addition to tax benefits, investors enjoy attractive conditions for renovation projects.

ARU Benefits:
• 5-year exemption from IMI (Property Tax)
• Exemption from IMT (Property Transfer Tax) for renovation projects
• Reduced tax rates on rental income and capital gains from renovated properties
• Financial reductions on municipal fees

Flexibility: Develop between 6 and 10 spacious apartments or combine commercial and residential spaces.

Prime Location: Its central position in Funchal’s historic downtown ensures high demand for both tourist rentals and commercial use.

Invest now and seize this rare opportunity! With these significant benefits and its unique location, this property offers an outstanding and highly lucrative long-term investment opportunity.