The Manchester United winger has reportedly decided upon a property in the upmarket district of Morajela, close to where Real's president Ramon Calderon and coach Bernd Schuster live.
Ronaldo underlined his growing disregard for Manchester United last week when he said he was prepared to upset Sir Alex Ferguson to secure a world-record transfer to Madrid.
The forward declared within moments of Portugal's elimination from the European Championship finals by Germany that he hoped to join Real although a formal bid is yet to materialise.
Reports today suggest Ronaldo is prepared to return to Manchester after his three-week holiday to Italy, although that hasn't dampened his desire to complete his dream move.