Where to Stay in Funchal (2026)

Top tips for Funchal

The Quick Answer

• The best neighbourhoods in Funchal for sightseers: Zonha Velha, Sé, São Pedro, 
• The most historic neighbourhoods in Funchal: Zonha Velha, Sé, Monte

Table of Contents

Funchal, Madeira’s capital, might surprise you with its historic architecture and cultural riches. It’s certainly idyllically positioned for maximum effect: nestled between dramatic cliffs, in front of lush mountains; but it’s the contrast between the narrow lanes of the original port, and the wide, graceful boulevards of Funchal that you really notice. As the largest centre in the Madeira Archipelago, Funchal also has some of the most significant museums and shopping streets, and this is the best place to visit on Madeira if you’re not interested in hiring a car. 

A Visitor’s Guide to the Neighbourhoods of Funchal

Via Google Maps

Madeira’s historic centre is called the Zona Velha. Its narrow, cobbled streets and traditional Portuguese architecture are charmingly laid out with restaurants, taverns and cafes on church squares, and many of the city’s historic sights are within the neighbourhood. Sé and São Pedro are the other super central areas. Sé is the modern city centre, and São Pedro is just to the north. The Lido district, which is centred around the district of São Martinho, is known for its luxurious, oceanside hotels, while also being only a short walk from Funchal’s historic centre. As well as being great neighbourhoods for resort-style accommodation, with numerous bars and restaurants, this is also a good pick for families, because you’re close to the ocean, and lots of hotels here have pools. Monte is outside central Funchal, on a hill that overlooks the heart of the city. It’s lush, green and peaceful, and has wonderful views.  

Zona Velha

Funchal’s Zona Velha, or historic central neighbourhood, is the oldest part of the city, and the best place to stay if you want to be close to many of its historic sights, to explore the narrow streets on foot, and to try the traditional local cuisine. Its charming painted doors on the Rua de Santa Maria are part of an art project designed to encourage visitors to explore this atmospheric neighbourhood on foot. Assuming this project works on you, some of the other sights to see in the Zona Velha include the Chapel of Corpo Santo (one of the oldest buildings in the city — about four hundred years old), the Fortaleza de São Tiago (a fortress built in the 17th century), the Mercado dos Lavradores, and the Teleférico cable car which takes you up to Monte. And even though you’re staying in the historic centre of town, you can still go swimming: in the Barreirinha, which has ladders down to the Atlantic Ocean. The Zona Velha is a great place to eat and drink, and it’s got a warm, but not raucous, atmosphere after dark.

Sé

Image by Christina from Pixabay

Sé is the more contemporary city centre, including the marina neighbourhood, the 15th century cathedral, and Avenida Arriaga, which is one of the city’s main boulevards, lined with shops and cafes. It sits directly west of the Zona Velha, so you’re close to the main historic sights, and on its opposite side it neighbours the Lido and São Martinho districts, which are where you’ll find many of the more contemporary hotels and resorts. Sé itself has a fairly good mix of accommodation; it’s a generally more affordable area than Lido, though, and has the lion’s share of the shopping streets. Sé’s main sights include the town square, Praça do Município and the Palácio de São Lourenço (which is the fortress on the marina). As well as being close to things, those who stay in Sé might also be grateful for the flatter terrain and proximity to transport options to the rest of the island. Because it’s the centre of contemporary Funchal, Sé has a certain amount of bustle during the day, but it’s more peaceful in the evenings.  

São Pedro

São Pedro is a central yet peaceful neighbourhood of Funchal, to the north of Sé, that's rich with historic architecture, lush gardens, great restaurants, and some excellent museums. Some of the highlights include the Quinta das Cruzes Museum, the tiles of the São Pedro Church, and the Quinta Jardins do Lago. São Pedro also has the National History Museum and aquarium. Expect to see incredible tiles, historic architecture and beautiful views. 

Lido & São Martinho

The Lido and São Martinho area is a great choice for anyone who wants to have easy access to all of the visitor treats of Funchal, while still feeling peaceful and relaxed. São Martinho is a colourful, residential neighbourhood, close to the ocean and Madeira's volcanic beaches, Funchal's incredible saltwater lido complex, plus numerous cafes, bars and restaurants. Whilst the historic centre of Funchal is only a comfortable stroll, or short bus ride, away. If you stay in the Lido and São Martinho neighbourhood, you will be close to the shopping opportunities of the Forum Madeira, and the charms of local fishing village: Camara de Lobos. If you want to see more of Funchal’s sights, this neighbourhood has great public transport connections to the rest of the city. The Lido, especially, is great for beach lovers and anyone who wants to catch rays by day, and enjoy nightlife by night — there’s even a local casino.

Monte

Monte is a lush, green neighbourhood which sits on a hillside between 550 and 580 metres above Funchal. It is a great choice for travellers looking for wonderful views, and anyone seeking out peace and quiet. You can get to Monte using the cable car, which leaves from the Zona Velha and takes about 15 minutes to get to the top. If you’re not a fan of heights, the alternative way down is using the carros de cesto, which are like wicker toboggans, dragged by professional carreiros. These were invented in 1850, and still offer the same service and slightly hair-raising experience; the ride also takes about 15 minutes. Some of the highlights of the Monte neighbourhood include the huge Monte Palace Tropical Garden; the Madeira Botanical Garden with its collection of around 100,000 exotic plant species; the Church of Our Lady of Monte, and the toboggans. Monte isn’t the most convenient place to stay, but it does offer lush surrounds, peace and incredible views.