Where to Stay in Madeira: A Guide to the Best Areas for Your Holiday

Where you choose to stay in Madeira can have a major impact on your holiday experience. A sea view and a good beach do not automatically mean that an area is suitable if you are travelling without a car or planning to take excursions every day. There are several other factors to consider, including transport links, distances to the island's main attractions, options for evening activities and walks, nearby cafés and shops, and the cost of excursions.

Let's take a look at the main areas of Madeira and see who each one is best suited to.

An Important Feature of Madeira: Take Elevation Changes into Account

Madeira is a volcanic island with very little naturally flat terrain. The terrain is steep, and this is an important factor to consider when planning your stay.

Pay close attention to the elevation of your accommodation and the difference in height between your hotel and the places you plan to visit on foot. Even if a property looks very close to the ocean on a map, the actual route may involve a very steep climb or descent.

When choosing accommodation, look beyond the distance shown on the map. Check the elevation of the property and the gradient of the walking route as well.

1. Funchal and Its Surroundings – A Convenient Base for Exploring the Island

Funchal is the capital of Madeira, located roughly halfway along the south coast, which is also the island's flattest area. Most of the island's tourist infrastructure is concentrated here, along with a wide range of activities and attractions: whale and dolphin watching trips, kayaking, canyoning, restaurants, shops, museums and pleasant waterfront areas.

Another important advantage is the convenience of excursion pick-ups. If you are planning to join private or group tours, staying in Funchal means you can avoid additional charges for accommodation located further away. On the other hand, hotels and apartments here are generally more expensive than in smaller towns around the island.

Funchal is also a convenient starting point for travelling to different parts of Madeira, both by public transport and by rental car. Buses connect the city with various areas of the island, making it possible to explore Madeira independently, even without a car. It is best to check routes and timetables in advance.

When it comes to beaches, there are options here too. Contrary to what many people think, natural volcanic swimming pools can be found in places other than Porto Moniz. In Funchal, Doca do Cavacas is a popular bathing complex featuring a natural volcanic pool and direct access to the ocean.

There is also Praia Formosa, the largest public beach in the Funchal area. It is mainly a pebble beach, although the western end has a lovely stretch of black sand.

Funchal is also a great place for an evening stroll. There are plenty of restaurants, cafés, souvenir shops and shopping streets. One of the nicest places to walk is the waterfront promenade in the Lido area, which continues along the coast towards Praia Formosa.

Areas Near Funchal: Garajau, Caniço, Santa Cruz and Câmara de Lobos

If you would like to save a little on accommodation, consider some of the neighbouring towns and areas:

• Garajau – a small coastal area very close to Funchal, with beautiful ocean views.
• Caniço – a little further from Funchal, offering a relaxed atmosphere and a convenient location for exploring the island.
• Santa Cruz – a small town near the airport, with a waterfront promenade and restaurants.
• Câmara de Lobos – a charming fishing town with a picturesque bay and atmospheric narrow streets.

Accommodation in these areas can be less expensive than in central Funchal, while still offering convenient access to transport. They are also convenient locations for guests joining private or group excursions, as additional charges for the distance from the hotel are generally not necessary.

2. Calheta – Ideal if a Sandy Beach Is Your Priority

The main attraction of Calheta is its golden sandy beach. It is worth knowing that the beach is artificial and was opened in 2004, with sand brought in from Morocco. Two breakwaters protect the bay from ocean waves, making swimming more comfortable, including for families with children.

However, this location also has a few drawbacks to consider.

Calheta is on the south-western coast of the island, quite far from the main tourist areas and many popular attractions. If you rent a car and plan to explore Madeira actively, be prepared to spend more time on the road. This is particularly true for trips to the eastern part of the island, the central mountains, Pico do Areeiro and other more distant locations.

If you choose to join private or group excursions, they will also cost more because of the additional pick-up distance.

Another thing to consider is the choice of evening activities. Calheta essentially has one short street with a handful of cafés and restaurants. Options for strolling around, shopping and entertainment are very limited. If you enjoy stepping out of your hotel in the evening, browsing the shops, choosing a restaurant and simply exploring the town, there is very little opportunity for that here.

My verdict: Calheta is a good choice for families with children who want to spend most of their holiday by a sandy beach, enjoy a peaceful setting and have no plans to travel to different parts of the island every day. It is less convenient if your priority is to explore Madeira extensively.

3. Machico – A Sandy Beach and a More Convenient Base in the East

If you are travelling with children and want to combine beach time with exploring the island, consider Machico.

The town has one of Madeira's few sandy beaches. The sand is imported, and the bay is protected by breakwaters, so the water is usually calmer than along the island's more exposed ocean coastline. The beach also has a gentle entry into the water, making it particularly suitable for families with children.

Machico is just a few minutes' drive from the airport. It is also a convenient base for exploring the eastern part of Madeira: from here, you can easily reach Ponta de São Lourenço, Caniçal, Pico do Areeiro and other interesting places.

Unlike Calheta, Machico offers some nice options for an evening stroll. The town has a small historic centre, a waterfront promenade, restaurants, cafés and shops. Machico itself is quite small, but there are enough places to explore in the evening.

My verdict: Machico is a good option for families with children and anyone looking for a sandy beach while still wanting the opportunity to enjoy evening walks and explore the eastern part of Madeira.

4. The North Coast: Porto Moniz, Seixal, Santana and Other Areas

Madeira's north coast is incredibly beautiful. It is known for its dramatic mountain slopes, lush valleys, waterfalls and spectacular ocean scenery. However, when choosing accommodation here, it is important to understand one thing: each of these locations is primarily known for one particular attraction.

All these places are well worth visiting. However, if you are planning to stay in one of them for your entire holiday, keep in mind that the choice of restaurants, shops, entertainment and places to go for an evening walk is much more limited than in Funchal.

The north coast is also quite far from many popular attractions in the central and eastern parts of the island. Trips to Pico do Areeiro, Ponta de São Lourenço and other destinations will take more time. If you book excursions, there will be an additional charge because of the distance from your accommodation.

My verdict: the north coast is an excellent choice for a short stay of one or two nights if you want to experience the atmosphere of this part of the island. I would consider staying here for the entire holiday only if you are deliberately planning a peaceful break in one particular area and are happy to spend more time travelling.

How to Choose Where to Stay in Madeira?

It all depends on the length of your trip, who you are travelling with and what you have planned.

The key is to consider more than just the price of your accommodation. Take into account transport and excursion costs, the time you will spend travelling, and whether there are cafés, restaurants and grocery shops nearby.

Where to Find Hotels and Apartments in Madeira?

You can use popular booking platforms and accommodation aggregators to find hotels and apartments.

There is another useful option, too: open Google Maps and search for accommodation directly on the map.

Enter Hotels in the Google Maps search bar, select the area you are interested in and browse the hotels and apartments available there. You can immediately see how close the accommodation is to the beach, town centre, restaurants, bus stops and other places that matter to you. Google Maps also displays prices and offers from different booking platforms.

This makes it much easier to assess not only the accommodation itself, but also its location in relation to everything you plan to do during your holiday.