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Nice, airy third floor apartment, a short walk from the heart of the Old Town. Excellent pavement café right outside, overlooking the sea. (Live music or DJ on Friday and Saturday but not very late and certainly didn't bother us). Our lovely hostess Elsa offers airport pick-up for less than the taxi fare if she's free. Finding the place from public transport drops might be a challenge: find the narrow restaurant packed Rua de Santa Maria and keep walking East (7-8 mins) until you hit the café Barreirinha (mentioned above). If you are more than a couple there are good sofa-bed options or the scary mezzanine. Note that the bathroom entrance is off of the main bedroom. If we return to Funchal we wont be looking for anywhere else.
A lovely apartment in a high quality residential block. Very close to the town and all bars and restaurants. Peter was super helpful.
Madeira never disappoints and this apartment is the icing on the cake!