Where to stay Madeira...
... the coast, hills or mountains?
AND THE ANSWER IS... IT DEPENDS!

It depends on many things but first some background. Madeira is not a huge island but at over 6,000 feet it is, for its size very high. This means that almost as soon as one leaves the coast the landscape goes vertical, by degrees. Indeed it's this very aspect that makes it such a picturesque destination; verdant gorges cut through the hillsides that reach almost to the Atlantic shoreline. In some places the shore is a cliff, Cabo Girão being Europe's highest!
Funchal may be sunny but the hills are often shrouded in mist and cloud.
IN THE CLOUDS
As with any high island, clouds form on the slopes. This is great if you're on the coast but not so good if you're in amongst them. The temperature can drop dramatically and what is a balmy day down below can be a chilly, damp experience up in the hills.
IN THE MOUNTAINS
This is why it depends. Hill and Levada walkers, hikers and those with a love of mountains will usually find themselves above any clouds, basking in a fresh atmosphere. There are plenty of mountain guesthouses and hotels to choose from, one of the best being Estalagem Eira do Serrado, with dramatic views overlooking the famously impressive Nun's Valley.
More Madeira Self Catering Apartments
IN THE SUN
Any cloud usually forms inland so sun lovers definitely should stay on the coast, to be precise, the south coast where it is most warm and sunny. Funchal offers the sophistication of a modern city whilst losing none of its old-world charm and is really the centre of everything; good accommodation, island tours, boat trips and a plethora of good restaurants. Those seeking a real getaway destination should check out the Paul do Mar Aparthotel. Close to probably the prettiest village in Madeira, Jardim do Mar, the south western corner of the island is well known to be the sunniest and warmest, but if you want to get about a hire car is recommended.
SUMMARY
South coast for warm sun. Golf resorts in the hills can be cool and overcast, may be better to stay on the coast which is very close. Avid mountain walkers are likely to be above any cloud but bear in mind it can be very chilly.
