Best Neighborhoods to Invest in Vanuatu

Published on October 2, 2025 and written by Cyril Jarnias

Vanuatu, a paradise archipelago in the South Pacific, is increasingly attracting the attention of international real estate investors. With its exceptional living environment, political stability, and favorable economic prospects, this country offers unique opportunities for those looking to diversify their real estate portfolio. In this article, we will explore the best neighborhoods to invest in Vanuatu and analyze the growth forecasts that make this country a prime destination for real estate.

Port-Vila’s Real Estate Gems: A Booming Capital

Port-Vila, the capital of Vanuatu, is undoubtedly the nerve center of the country’s real estate activity. This dynamic city concentrates the majority of investment opportunities, with neighborhoods distinguished by their growth potential and appeal to expatriates and tourists.

The Seaside neighborhood is particularly sought after for its central location and proximity to the waterfront. Properties in this area benefit from strong rental demand, especially for short-term rentals. Investors can find modern apartments with sea views or traditional homes to renovate, offering excellent appreciation potential.

Nambatu, a rapidly expanding residential neighborhood, is increasingly attracting investor attention. With its developing infrastructure and family-friendly atmosphere, Nambatu offers excellent value for those looking to acquire spacious properties in a calm, green environment.

The Tassiriki neighborhood, located in the hills of Port-Vila, attracts with its panoramic bay views and exclusive character. Luxury villas and high-end residences are particularly sought after by wealthy international clients, promising attractive rental returns.

Espiritu Santo: The Emergence of a New Real Estate Attraction Pole

Although less developed than Port-Vila, Espiritu Santo island is gaining popularity among savvy investors. As the second largest and most populated island of Vanuatu, Espiritu Santo offers an exceptional living environment and investment opportunities at still affordable prices.

Luganville, the main town on the island, is experiencing rapid development in its tourism sector. Investors can acquire properties with high growth potential here, particularly buildable land or small hotel complexes to renovate. The growing demand for tourist accommodations promises interesting rental returns.

The coastal areas of Espiritu Santo, such as Champagne Beach or Port Olry, are increasingly attracting international investor attention. These regions offer unique opportunities to develop eco-tourism complexes or luxury beachfront villas, capitalizing on the island’s exceptional natural beauty.

Espiritu Santo’s hinterland also presents interesting potential for visionary investors. With the development of adventure tourism and agritourism, acquiring large rural properties can prove to be a profitable long-term strategy.

The Outer Islands: Investment Niches for Pioneers

Beyond Efate (where Port-Vila is located) and Espiritu Santo, Vanuatu’s outer islands are beginning to attract investor attention for those seeking unique opportunities and potentially high returns.

Tanna, famous for its active volcano and ancestral traditions, is seeing growing interest in developing ecolodges and exclusive resorts. Pioneer investors can acquire land at attractive prices in promising areas like White Grass or Port Resolution, anticipating the island’s future tourism development.

Malekula, the second largest island of Vanuatu, offers opportunities for those wishing to invest in cultural tourism and agriculture. Purchasing agricultural land or developing authentic small accommodation structures can constitute wise long-term investments as the island opens up to international tourism.

The Banks Islands, located at the far north of the archipelago, represent a still largely unexplored frontier for real estate investment in Vanuatu. Although development there remains limited, these islands offer unique potential for innovative ecotourism projects or exclusive retreats, capitalizing on their isolation and preserved natural beauty.

Growth Prospects: A Promising Future for Real Estate in Vanuatu

Growth forecasts for the real estate sector in Vanuatu are decidedly optimistic, driven by several key factors that should support demand and valuations in the coming years.

Tourism development is a major driver of real estate growth in Vanuatu. According to government projections, the number of international visitors is expected to increase by 5 to 7% annually over the coming years, stimulating demand for tourist accommodations and second homes. This trend is particularly favorable for investments in coastal areas and islands with high tourism potential.

Infrastructure investments planned by the Vanuatu government and supported by international partners should significantly improve the accessibility and attractiveness of certain regions. Major projects, such as improvements to regional airports and development of new roads, are likely to open new investment opportunities in previously hard-to-reach areas.

The citizenship by investment program of Vanuatu continues to attract international investors, contributing to support the high-end real estate market. This program, which offers citizenship in exchange for significant investment, should continue to stimulate demand for luxury properties, particularly in Port-Vila and popular tourist destinations.

Economic diversification of Vanuatu, with a focus on developing sectors such as sustainable agriculture, renewable energy, and offshore financial services, promises to create new real estate investment opportunities. Rural areas and emerging business centers could benefit from this dynamic, offering interesting prospects for long-term investors.

• Projected GDP growth: 3.5% average annual over the next 5 years
• Expected real estate price increases: 5-8% per year in sought-after areas
• Average rental yields: 6-10% for well-located properties in Port-Vila

Tips for Investing Wisely in Vanuatu

To maximize the success chances of your real estate investment in Vanuatu, it’s crucial to follow some key recommendations:

Conduct thorough due diligence: The land system in Vanuatu can be complex, with a distinction between customary lands and leasehold properties. Make sure to fully understand property rights and potential restrictions before any investment.

Diversify your portfolio: Don’t put all your eggs in one basket. Consider investing in different types of properties and geographic areas to spread risks and maximize opportunities.

Think long-term: Vanuatu’s real estate market, while promising, can experience short-term fluctuations. Adopt a long-term investment perspective to fully benefit from the country’s growth potential.

Collaborate with local experts: Engage experienced real estate agents, lawyers, and accountants in the Vanuatu market to effectively navigate the legal and tax aspects of your investment.

Stay informed about local developments: Closely follow infrastructure projects, regulatory changes, and economic trends that could impact your investment’s value.

Conclusion: Vanuatu, A Real Estate Investment Destination Not to Overlook

Vanuatu offers unique real estate investment potential, combining attractive growth opportunities with an exceptional living environment. Whether in the dynamic neighborhoods of Port-Vila, the emerging areas of Espiritu Santo, or the still largely unexplored outer islands, savvy investors will find options suited to their objectives and risk profile.

With solid growth prospects, supported by tourism development, infrastructure investments, and policies favorable to foreign investors, the Vanuatu real estate market promises interesting returns for those who know how to seize opportunities at the right time.

However, as with any international investment, it’s crucial to approach the Vanuatu market with a well-thought-out strategy, a thorough understanding of local realities, and a long-term vision. By following these principles and remaining attentive to market developments, investors can hope to capitalize on the promising potential of real estate in Vanuatu.