Funchal's neighbourhoods

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Visitors choosing a base in Funchal often compare hotels before they compare areas, and then find the area decides the stay. The city is small, but its six main areas are very different: one is historic and lively, one is the formal centre, one is museums and calm, one is quiet and steep, one is resorts by the sea, and one is a hill village above it all.

The Zona Velha, the old town, has the painted doors of Rua de Santa Maria and 96 restaurants within 450 m. The Sé, around the cathedral, is the densest, with 171 listed places within 500 m. São Pedro, just west, holds eight museums. Santa Luzia, uphill from the old town, is residential, quieter and cheaper, with views. The Lido, west along the coast, is the hotel zone, with three Blue Flag bathing areas. And Monte, on the hill, has the cable car, the toboggans and the gardens.

The historic centre: Zona Velha and the Sé

The common mistake is to treat the old town and the centre as one place. They sit side by side, but they feel different.

The Zona Velha is the old town at the eastern end of the seafront: narrow cobbled streets of restaurants, bars and merchant houses, about 200 painted doors on Rua de Santa Maria, the yellow Forte de São Tiago, sea pools below the walls, and the market and the cable car to Monte at its edges. It is lively, packed with restaurants and bars, and cramped and pricey to stay in.

The Sé is the formal centre around the cathedral, inaugurated in 1514: the town square with the town hall, the museums of sacred art, sugar and the military, Avenida Arriaga and the Municipal Garden, where the Flower Festival, Carnival and the jazz festival's first nights take place. With 171 listed places within 500 m of the cathedral, 149 of them restaurants, it is the densest part of the city.

Both are by the sea, and both are best on foot.

Calmer and central: São Pedro

Visitors who want the centre without its noise often do not know where to look. São Pedro is the answer.

São Pedro lies just west of the cathedral and uphill from the seafront: central, and calmer than the old town. It has more museums than any other area of the city, eight within 500 m, among them the Quinta das Cruzes, with 500 years of art in an 18th-century villa, the Natural History Museum, opened in 1929, and the Madeira Photography Museum.

Above it stands the Fortaleza do Pico, the hilltop fort with panoramic views and the Atlantic Festival's opera nights. On its seaward side, the Santa Catarina Park hosts the jazz festival's main nights and looks over the bay.

For a stay, it suits visitors who want to walk to everything in the centre and still sleep in quieter streets. The trade-off is the slope towards the fort.

Quiet and high: Santa Luzia

The mistake is to judge a stay by the sights on the doorstep. Santa Luzia has few, and that is its appeal.

Santa Luzia is a small parish of 1.34 km² and 5,490 people, climbing the hill above the old town towards Monte. Only seven listed places lie within 700 m of its centre, four of them viewpoints. As a base, it is quieter and cheaper than the old town, with better views, and it is steep.

Two city bus routes climb through it, 070 and 026, both running down to the seafront, so the routine is simple: walk down to the old town for the day or dinner, and ride back up.

It suits visitors who want calm nights and a view, and who do not mind a climb. It suits less those with limited mobility or heavy luggage.

Resorts by the sea: the Lido

People booking a resort often find it is in the Lido without knowing what the area is. It is the city's hotel zone.

The Lido, with São Martinho behind it, runs west of the centre along the Estrada Monumental and the Promenade do Lido. It has the big seafront hotels and resorts, the municipal Lido bathing complex, €6 an entry from June to September, and three of Funchal's five Blue Flag bathing areas: the Lido, Ponta Gorda-Poças do Governador and Formosa. There are 135 restaurants within 1 km.

It is well connected: the Aerobus from the airport runs through the zone to Praia Formosa, and city buses reach the centre. It has less character than the historic areas.

It suits a holiday built around the hotel, the pool and the sea, with the city a bus ride away.

The Lido neighbourhood features three Blue Flag bathing areas and is well connected to the airport by the Aerobus.

The hill village: Monte

Visitors often think of Monte as a sight, not an area. It is both.

Monte is the parish on the hill above Funchal, 5,794 people over 18.59 km². It is reached by the cable car from the old town, €16 one way or €22 return, or by bus routes 020, 021 and 022. It holds the church of Nossa Senhora do Monte with the tomb of Emperor Karl I of Austria, the 70,000 m² Monte Palace Tropical Garden, €18, the toboggans that run about 2 km down to Livramento, and the cable car to the Botanical Garden.

It is also the end of the Levada dos Tornos walk from Palheiro, 4 km in 3 to 4 hours with lunch.

As a base, it is far from the sea and the restaurants of the centre, with a dozen restaurants on the hill, so for most visitors it is easier to see it in a day and sleep lower down.

Monte is reached by cable car from the old town and holds the tomb of Emperor Karl I of Austria in its church.

Choosing a base

The mistake is to choose by price alone. Choose by the evenings you want and the slopes you can manage.

For a first visit, walking everywhere: the Sé or São Pedro, central and on foot to everything. For nights out: the Zona Velha, with the most restaurants and bars by a single street. For calm and views on a budget: Santa Luzia, uphill. For a resort holiday by the pool and the sea: the Lido. For a day, not a base: Monte.

Whichever you choose, the areas are close. The old town and the Sé are side by side, São Pedro is next to the Sé, Santa Luzia is directly above the old town, the Lido is a bus ride west, and Monte a cable car ride up.

Accommodation anywhere in Funchal adds the municipal tourist tax of €2 per guest per night for visitors over 12, for at most 7 nights.

Getting between them

People often think a city on a hill needs a car. Funchal's areas connect by foot, bus and cable car.

On foot, the seafront links the old town, the Sé and São Pedro, and the promenade runs west towards the Lido. The city buses cover the climbs: a trip costs €1.45 on a pre-paid GIRO card or €2.05 on board, and day tickets start at €4.95. The cable car climbs from the old town to Monte, and a second one runs from Monte to the Botanical Garden.

A car is mostly a cost in the city: street parking in the centre costs €0.54 to €1.83 an hour. The guide to getting around Funchal covers every way of moving, and the guide to where to stay the hotels. The 2026 bus fare table lists every ticket, and the cable car's site its prices.

Common questions

What is the best area to stay in Funchal?

For a first visit, the Sé or São Pedro, central and on foot to everything; the old town for nights out, Santa Luzia for quiet and views, the Lido for a resort.

Where is Funchal's old town?

The Zona Velha, at the eastern end of the seafront, around Rua de Santa Maria.

Where are the big hotels?

In the Lido and São Martinho, west of the centre, along the Estrada Monumental and the Promenade do Lido.

Is Monte a good place to stay?

It is far from the sea and the centre's restaurants, so for most visitors it is easier to see it in a day and sleep lower down.