Investing in Madagascar Real Estate

Published on October 4, 2025 and written by Cyril Jarnias

The island of Madagascar, nicknamed the Great Island, is increasingly attracting attention from real estate investors worldwide. With its rapidly growing economy, untapped tourism potential, and breathtaking landscapes, Madagascar offers unique opportunities for those looking to diversify their real estate portfolio. In this article, we will explore in detail why investing in Madagascar real estate can be a wise decision, and how to go about maximizing your investment.

A Tropical Paradise with Multiple Assets

Madagascar possesses numerous assets that make it a prime destination for real estate investment. Its expanding economy, driven by the development of tourism, agriculture, and extractive industries, creates an environment conducive to real estate market growth. Additionally, the country’s relative political stability in recent years has strengthened foreign investor confidence.

Madagascar’s tourism potential is immense. With its white sand beaches, unique tropical forests, and endemic wildlife, the island attracts a growing number of visitors each year. This tourist influx creates strong demand for quality accommodations, thus offering interesting opportunities for rental property investment.

The relatively low cost of living in Madagascar is another attractive factor for investors. Real estate prices, although rising, remain competitive compared to other tropical destinations, allowing for potentially high returns.

The Malagasy Real Estate Market: Rapidly Evolving Prices

The real estate market in Madagascar is experiencing dynamic evolution, with prices varying considerably by region and property type. In the capital, Antananarivo, prices for luxury apartments can reach 2,500,000 Ariary per month (approximately 550 euros) for rentals, while purchasing a similar apartment can cost between 200,000 and 400,000 euros.

In popular tourist areas like Nosy Be or Sainte-Marie, prices are generally higher, reflecting strong demand from tourists and expatriates. A beachfront bungalow can sell for between 100,000 and 300,000 euros, depending on its size and location.

It’s important to note that the Malagasy real estate market is still developing, meaning there are many opportunities to acquire properties at relatively low prices, with significant potential for appreciation in the medium and long term.

A Range of Real Estate Choices for All Tastes

Madagascar offers a wide variety of real estate properties, suitable for different budgets and investment objectives. Here are some examples of the most common types of housing:

• City apartments: Ideal for investors targeting expatriate or local professional clientele. In Antananarivo, a 3-room apartment in a residential neighborhood can cost between 150,000 and 250,000 euros.
• Villas with gardens: Highly sought after by expatriate families and long-term tourists. A 4-bedroom villa with a pool in Nosy Be can sell for around 300,000 to 500,000 euros.
• Beachfront bungalows: Perfect for tourist rental investment. In Sainte-Marie, a luxury bungalow can cost between 150,000 and 250,000 euros.
• Buildable land: An interesting option for those who wish to develop their own projects. Prices vary considerably by location, ranging from 20 to 200 euros per square meter.

The Golden Zones of Malagasy Real Estate Investment

Certain regions of Madagascar stand out particularly in terms of attractiveness for real estate investment. Here are the most promising areas:

Antananarivo, the capital, remains the country’s economic and administrative center. Business districts like Ankorondrano and upscale residential areas like Ivandry offer excellent investment opportunities, particularly in office real estate and luxury residences.

Nosy Be, nicknamed “the perfumed island,” is Madagascar’s flagship tourist destination. Investment in luxury villas or hotel complexes on this paradise island can prove very profitable, thanks to constantly increasing tourist demand.

Tamatave (Toamasina), the country’s main port, is experiencing rapid economic development. Residential and commercial real estate is booming there, offering interesting prospects for investors.

Sainte-Marie (Nosy Boraha) is an island gaining popularity among tourists seeking authenticity. Investment opportunities in beachfront bungalows or small charming hotels are numerous there.

Diego Suarez (Antsiranana), with its spectacular bay and still largely untapped tourism potential, represents an interesting option for visionary investors. Prices there are still relatively low, but the region is experiencing promising development.

Madagascar vs Other Destinations: Unique Potential

Compared to other popular tropical destinations for real estate investment, Madagascar stands out in several aspects:

Competitive prices: Real estate prices in Madagascar remain generally more affordable than in destinations like Mauritius, Seychelles, or even Thailand, thus offering better long-term appreciation potential.

Preserved authenticity: Unlike some overdeveloped destinations, Madagascar retains authentic charm and unique biodiversity, making it an increasingly sought-after destination by tourists looking for original experiences.

Diversity of opportunities: Madagascar offers a great variety of landscapes and microclimates, allowing for diversification of investments between urban, coastal, and mountainous areas.

Growth potential: The Malagasy real estate market is still relatively young and in full development, thus offering significant growth prospects in the medium and long term.

Investing in Madagascar: A Guide for Foreigners

Good news for foreign investors: it is entirely possible to acquire real estate in Madagascar. However, there are certain restrictions and specific procedures to follow:

• Foreigners cannot directly own land in Madagascar, but they can obtain emphyteutic leases for up to 99 years.
• Acquisition of built property (apartment, house) is authorized for foreigners, subject to obtaining prior approval from the Malagasy government.
• It is recommended to create a Malagasy legal company to facilitate real estate acquisition and management procedures.
• Assistance from a local lawyer specialized in real estate law is strongly advised to navigate administrative and legal complexities.

The acquisition process can take several months, so it’s important to plan your investment accordingly and be patient.

Rental Profitability: Promising Figures

Rental investment in Madagascar can prove particularly profitable, especially in tourist areas and large cities. Here are some examples of potential profitability:

Long-term rental in Antananarivo: A luxury apartment in a sought-after neighborhood can generate a gross rental yield of 8 to 12% per year. For example, an apartment purchased for 200,000 euros could be rented for around 1,500 to 2,000 euros per month.

Seasonal rental in Nosy Be: A luxury villa with a pool can achieve occupancy rates of 60 to 80% annually, with daily rates ranging from 150 to 300 euros, depending on the season. This can translate to an annual gross yield of 10 to 15%.

Beachfront bungalow in Sainte-Marie: A well-located bungalow can generate rental income of 50 to 100 euros per night, with an average occupancy rate of 50 to 70% annually, representing a potential gross yield of 8 to 12%.

It’s important to note that these figures are estimates and may vary depending on many factors, including property quality, exact location, rental management, and tourist market fluctuations.

Conclusion: Madagascar, A Land of Opportunities for Real Estate Investment

Investing in Madagascar real estate represents a unique opportunity to diversify your portfolio while participating in the economic development of a country with exceptional potential. With its still affordable prices, growing market, and increasing tourist appeal, Madagascar offers promising prospects for savvy investors.

However, as with any foreign investment, it’s crucial to research thoroughly, surround yourself with competent professionals, and consider local specificities before getting started. A good understanding of the market, a clear investment strategy, and rigorous management are the keys to success in making the most of the opportunities offered by the Malagasy real estate market.