Investing in Madagascar: Top Profitable Neighborhoods

Published on October 4, 2025 and written by Cyril Jarnias

Madagascar, nicknamed the Red Island, is attracting more and more real estate investors thanks to its growing tourism potential and economic development. With its varied landscapes, unique biodiversity, and paradise beaches, the island offers numerous real estate investment opportunities, whether for seasonal rentals or purchasing vacation homes. Let’s explore together the most promising neighborhoods to invest in Madagascar in 2025.

Real Estate Gems of the Big Island: Neighborhoods with High Potential

Madagascar is full of attractive areas for real estate investment. Here’s an overview of the most promising neighborhoods in the island’s main cities:

Antananarivo: The Bustling Capital

Ivandry: This upscale residential neighborhood in Antananarivo attracts many expatriates and Malagasy executives. With its modern villas, shopping centers, and gourmet restaurants, Ivandry offers a pleasant and secure living environment. Real estate prices there are constantly increasing, promising a good return on investment.

Ankadimbahoaka: Currently developing, this neighborhood located south of the capital is experiencing an impressive real estate boom. Numerous apartment and single-family home construction projects are emerging, attracting a young and dynamic clientele. The still affordable prices make it an excellent medium-term investment opportunity.

Nosy Be: The Perfume Island, Investor’s Paradise

Ambatoloaka: The true tourist heart of Nosy Be, Ambatoloaka is the ideal neighborhood to invest in properties for seasonal rentals. Its white sand beaches, restaurants, and bars make it a highly sought-after location for international tourists. Villas and apartments with sea views are particularly in demand.

Hell-Ville: The capital of Nosy Be is experiencing rapid development of its real estate portfolio. Investors will find interesting opportunities here, particularly in constructing small buildings or purchasing land plots. The proximity to the port and airport makes it a strategic location for long-term rental investments.

Tamatave: The Expanding Eastern Gateway

Tanambao V: This residential neighborhood in Tamatave (Toamasina) is attracting more and more investors due to its proximity to downtown and the port. Single-family homes and small buildings are particularly sought after, offering good rental potential among expatriates and local executives.

Mangarivotra: Located by the sea, this beach neighborhood in Tamatave is experiencing significant growth in local and international tourism. Investments in bungalows or small hotel residences are particularly promising, with high occupancy rates throughout the year.

Future Outlook: Madagascar, a Booming Real Estate Market

The Malagasy real estate market has experienced sustained growth for several years, and the outlook for 2025 and beyond is very encouraging. Here are the main factors indicating a bright future for real estate investment in Madagascar:

Expanding Tourism

Madagascar is increasingly focusing on developing its tourism sector. The government has implemented incentive measures to attract foreign investors in this field, particularly in hotel and luxury residence construction. Forecasts predict a 50% increase in tourist numbers by 2030, which will positively impact housing demand and real estate prices in tourist areas.

Continuously Improving Infrastructure

The country is heavily investing in modernizing its infrastructure, particularly in transportation and energy. The construction of new roads, airport expansions, and improvements to the electrical grid are making certain regions more accessible and attractive to real estate investors. These developments are expected to continue in the coming years, opening new investment opportunities in previously underdeveloped areas.

Growing Middle Class

The emergence of a dynamic Malagasy middle class is stimulating demand for quality housing, particularly in large cities like Antananarivo and Tamatave. This trend is expected to continue in the coming years, offering interesting prospects for residential real estate investors.

Still Affordable Market

Despite constant price increases in recent years, the Malagasy real estate market remains relatively affordable compared to other similar tourist destinations. This situation still offers great opportunities for foreign investors, with interesting capital gain prospects in the medium and long term.

Tips for Successful Real Estate Investment in Madagascar

To maximize your chances of success in your real estate investment project in Madagascar, here are some tips to keep in mind:

1. Work with Local Professionals: Collaborate with recognized and experienced real estate agents, notaries, and lawyers in the Malagasy market to secure your investment.

2. Carefully Study the Investment Area: Research ongoing and upcoming development projects in the chosen neighborhood to anticipate future changes.

3. Diversify Your Portfolio: Don’t put all your eggs in one basket. Consider investing in different types of properties (residential, commercial, tourist) and in different regions to spread risks.

4. Consider Rental Management: If you’re investing in a property for rental, ensure you can rely on reliable and professional local management.

5. Stay Informed About Regulatory Changes: Laws concerning real estate investment in Madagascar may evolve. Keep up to date with potential changes that could impact your investment.

In conclusion, Madagascar offers excellent real estate investment opportunities for the coming years. With careful neighborhood selection and a good understanding of the local market, investors can expect attractive returns and interesting capital gains in the medium and long term. The Red Island hasn’t finished charming property enthusiasts and exoticism lovers!