Published on and written by Cyril Jarnias
The island of Madagascar, a jewel of the Indian Ocean, is poised to undergo a true urban metamorphosis in the coming years. With a series of ambitious projects underway, the Malagasy real estate landscape is on the verge of an unprecedented transformation. These developments promise not only to modernize the country’s infrastructure but also to open new perspectives for local and international investors. Let’s dive into the heart of this urban revolution that will shape the Madagascar of tomorrow.
Colossal Projects Reshaping the Urban Landscape
Madagascar is resolutely embarking on the path of urban development with several large-scale projects that promise to radically transform its main cities, particularly the capital Antananarivo.
The PRODUIR Project: A Response to Urban Challenges
The Integrated Urban Development and Resilience Project (PRODUIR) represents one of the pillars of this transformation. Launched with the support of the World Bank, this project aims to improve living conditions in Greater Antananarivo, focusing on flood risk management and urban sanitation.
One of the flagship projects of PRODUIR involves the rehabilitation of the C3 canal, a crucial hydraulic structure for the capital. The work includes complete dredging of the canal, bank development, and the construction of new footbridges. This major project doesn’t just combat flooding; it literally reshapes Antananarivo’s urban landscape, creating new circulation spaces and improving urban mobility.
The Orange Line: A Revolution in Urban Transport
Simultaneously, Antananarivo is preparing to inaugurate a revolutionary mode of transport for the city: the Cable Transport (TPC) Orange Line. With its 7 stations and 51 pylons already installed, this project promises to radically transform urban mobility in the capital. This technological innovation doesn’t just streamline travel; it offers a new perspective on the city, both for its inhabitants and visitors, and paves the way for new real estate developments along its route.
MATAC/Hanorina: Towards Digitized Urban Management
The second phase of the MATAC/Hanorina project, launched in February 2025, marks a turning point in urban management in Madagascar. This project aims to digitize the processes for granting urban planning authorizations and computerize the issuance of building permits in 38 municipalities of the Antananarivo agglomeration. This initiative doesn’t just simplify administrative procedures; it lays the foundation for more transparent, efficient, and investor-attractive urban development.
A Real Estate Market in Full Transformation
These urban development projects are not mere cosmetic improvements; they are profoundly redefining the Malagasy real estate market, opening new perspectives for both local players and international investors.
Growing Demand in Strategic Areas
In Antananarivo, business districts like Ankorondrano and Andraharo are experiencing unprecedented excitement. The establishment of new companies and the growth of the tertiary sector are stimulating demand for modern office spaces and upscale housing. The high-end residential areas of Ivandry and Ankadimbahoaka are particularly attracting investors’ attention, driven by growing demand for housing for expatriate executives and the expanding Malagasy middle class.
A Real Estate Boom Beyond the Capital
The impact of these developments is felt far beyond Antananarivo. In Nosy Be, the “tourist jewel” of Madagascar, the real estate market is remarkably dynamic, particularly in the vacation home and hotel complex sectors. Seaside land for tourism projects and secondary residences with seasonal rental potential represent particularly attractive opportunities for savvy investors.
Tamatave (Toamasina), the country’s main port, is not left behind. The development of port and industrial activities is stimulating demand for commercial real estate and housing for sector executives. Mixed commercial and residential projects find particularly fertile ground there, driven by rapidly expanding economic activity.
Increased Valuation of Real Estate Assets
The ongoing urban development projects have a direct impact on real estate values. In areas benefiting from major infrastructure improvements, such as the surroundings of the rehabilitated C3 canal or neighborhoods served by the new cable transport line, a significant appreciation in property values is observed. This trend is not limited to areas directly affected by the work; the entire real estate market benefits from a ripple effect, creating a virtuous cycle of investment and development.
An Eldorado for Savvy Investors
In this context of urban transformation, Madagascar is establishing itself as a prime destination for real estate investors seeking high-potential opportunities.
Promising Sectors to Explore
Several niches stand out particularly:
- High-end residential real estate in the booming neighborhoods of Antananarivo
- Hotel complexes and vacation homes in Nosy Be, capitalizing on the island’s growing tourist appeal
- Commercial real estate in Tamatave, in line with port and industrial development
- Ecotourism projects and eco-lodges, in harmony with Madagascar’s unique natural wealth
An Evolving Regulatory Framework
The Malagasy government, aware of the importance of attracting foreign investment, is actively working to improve the regulatory framework. The digitization of urban planning procedures, with the MATAC/Hanorina project, is a significant step in this direction. These developments promise to simplify procedures for investors, reducing delays and increasing the transparency of real estate transactions.
Encouraged Public-Private Partnerships
Faced with the scale of urban development needs, Malagasy authorities are actively encouraging public-private partnerships. These collaborations offer unique opportunities for investors to participate in structuring projects, benefiting from institutional support while contributing to the country’s development. Whether in infrastructure, social housing, or public facilities, these partnerships represent a preferred path for investors looking to establish themselves sustainably in Madagascar.
Good to Know:
Foreign investors benefit from an attractive tax framework in Madagascar, including exemptions from profit taxes during the first years of operation for certain priority sectors, including tourism real estate.
Conclusion: A Promising Urban Future
Madagascar is at a turning point in its urban history. The ongoing development projects don’t just modernize infrastructure; they are redesigning the face of Malagasy cities and paving the way for a new paradigm of sustainable and inclusive urban development.
For investors, the time is right to seize the opportunities offered by this rapidly changing market. Whether in residential, commercial, or tourist real estate, Madagascar offers fertile ground for investments with high growth potential.
However, as with any foreign investment, a cautious and well-informed approach remains essential. Knowledge of the local terrain, understanding of local specificities, and building a strong network of local partners are all keys to successfully establishing oneself in this promising market.
Good to Know:
Diversifying your real estate portfolio in Madagascar, for example by combining investments in urban residential properties in Antananarivo with tourism projects in Nosy Be, can offer an interesting balance between short-term returns and long-term capital gains.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
