Common Mistakes When Buying Real Estate in Madagascar

Published on October 30, 2025 and written by Cyril Jarnias

Here is a 3000-word article on common mistakes when purchasing real estate in Madagascar, with renamed sections to make them more appealing:

Buying real estate in Madagascar can represent an attractive opportunity, whether for living or as an investment. However, this market has specific characteristics and risks that need to be understood. Many buyers, especially foreigners, make mistakes that can prove costly. This article reviews the main pitfalls to avoid for a smooth and profitable real estate purchase in the Great Island.

Failing to Verify Property Legality: The Legal Nightmare Awaiting You

One of the most serious – and unfortunately common – mistakes is failing to meticulously verify the legal status and ownership of the desired property. Madagascar’s land system is complex, with different types of ownership (titled land, cadastral land, land with unclear legal status…).

Many properties lack clear title deeds, which can lead to future disputes. Some unscrupulous sellers don’t hesitate to offer properties they don’t actually own. Others omit to mention easements or usage restrictions.

To avoid this trap, it’s essential to:

• Request and verify all official documents proving property ownership (land title, sales deed, etc.)
• Have a thorough study conducted by a specialized notary or lawyer
• Check for any disputes or claims on the property with local authorities
• Ensure the property isn’t located in a protected area or subject to restrictions

Never neglect this crucial step, even if the seller seems trustworthy. The consequences of an illegal purchase can be disastrous: loss of your investment, legal proceedings, inability to resell…

Underestimating Hidden Costs: The Soaring Bill

Many buyers focus solely on the listed purchase price without considering the numerous additional costs that can significantly increase the final bill. In Madagascar, these hidden costs can represent up to 10-15% of the property price.

Among the main costs to anticipate:

• Registration fees and taxes (approximately 6% of sale price)
• Notary fees (2-3% on average)
• Real estate agency fees when applicable (3-5%)
• Potential renovation or compliance work
• Utility connection fees (water, electricity)
• Annual property taxes

Don’t forget maintenance costs either, which can be high in certain regions (tropical climate, insects…). For rental investments, also budget for management fees.

Establish a detailed budget including all these expense items before committing. This will help you avoid unpleasant surprises and negotiate the price with full knowledge.

Neglecting Location: The Choice That Determines Everything

Location is a crucial criterion for any real estate purchase, but it takes on particular importance in Madagascar. Many buyers, attracted by appealing prices, make the mistake of acquiring poorly located properties.

Several factors must be considered:

• Accessibility: road conditions, distance from shops and services
• Neighborhood safety
• Natural risks (floods, cyclones…)
• Area development potential
• Proximity to local communities

In Antananarivo for example, certain neighborhoods like Ivandry or Analamahitsy are highly sought after by expatriates for their safety and amenities. Conversely, more remote areas may present access or safety issues.

For coastal properties, beware of coastal erosion risks and specific regulations. Some paradise beaches may prove isolated and difficult to access part of the year.

Take time to thoroughly study the area, visit at different times (day/night, dry/rainy season) and inquire with local residents. A good location ensures daily comfort and better long-term value.

Rushing Into a “Good Deal”: Caution and Patience Are Required

The Malagasy real estate market is full of tempting opportunities, with prices sometimes much lower than in Europe. However, rushing into an offer that seems too good to be true is often a serious mistake.

Several reasons can explain abnormally low prices:

• Undisclosed legal issues
• Hidden defects or poor overall property condition
• Unattractive location
• Access or utility connection difficulties
• Outright scams

Take time to thoroughly study each offer, compare with local market prices, and commission independent assessments. Never yield to pressure from a seller pushing for quick closure.

It’s also recommended to visit several properties before deciding, even if the first one seems perfect. This will give you better market understanding and stronger negotiation position.

Ignoring Cultural Specificities: The Clash of Mentalities

Many foreign buyers underestimate the importance of cultural differences in Madagascar’s real estate purchase process. This mistake can lead to misunderstandings, delays, or even transaction failure.

Key points to keep in mind:

• Time perception: announced deadlines are often approximate
• Importance of hierarchy and respect for elders
• Central role of negotiation in all transactions
• Role of local customs, especially for rural land
• Concept of collective ownership in some regions

It’s essential to demonstrate patience, diplomacy, and respect for local customs. Don’t hesitate to be accompanied by a trusted Malagasy intermediary who can facilitate communication and prevent cultural missteps.

In some regions, obtaining traditional authorities’ approval may be necessary before any land transaction. Ignoring these aspects can compromise your purchase and future neighborhood relations.

Neglecting Property Condition: Renovations That Blow Your Budget

Many buyers, charmed by a property’s appeal or eager to close, omit to thoroughly inspect the property’s condition. This negligence can lead to heavy unexpected expenses later.

Points to carefully check:

• Building structure (foundations, load-bearing walls, roof)
• Electrical and plumbing installations
• Waterproofing and insulation
• Potential presence of termites or other pests
• Condition of joinery and floors

Madagascar’s tropical climate can accelerate building deterioration. Be particularly wary of humidity and the damage it can cause.

Don’t hesitate to hire an independent expert for comprehensive property assessment. The cost of this expertise will be largely offset by savings on potential unexpected repairs.

For older or character properties (like colonial villas), anticipate potentially high renovation and maintenance costs. Include these expenses in your overall budget before deciding.

Underestimating Administrative Constraints: The Obstacle Course

Administrative procedures related to real estate purchases in Madagascar can prove lengthy and complex, especially for foreigners. Failing to anticipate these constraints is a common mistake that can significantly delay your project.

Main procedures to anticipate:

• Obtaining acquisition authorization for non-residents
• Property registration in land registry
• Tax formalities (declaration, fee payment)
• Obtaining necessary permits for potential work
• Utility connections

Delays can be particularly long for obtaining certain official documents. It’s not uncommon for procedures to take several months, or even over a year in some cases.

To effectively navigate this administrative maze, strongly consider hiring a specialized lawyer or notary. Their expertise will save valuable time and prevent costly errors.

Ignoring Natural Risks: When Nature Intervenes

Madagascar is exposed to various natural risks that can significantly impact your real estate investment. Neglecting these aspects can lead to dramatic situations and rapid property devaluation.

Main risks to consider:

• Cyclones, particularly on east and north coasts
• Floods, frequent during rainy season
• Coastal erosion, threatening certain coastal areas
• Landslides in mountainous regions
• Locust invasions in some rural regions

Before any purchase, carefully study the region’s natural disaster history. Check if the property is located in a risk area and if it’s designed to withstand local climate hazards.

Also ensure your home insurance adequately covers these specific risks. Some companies offer contracts adapted to the Malagasy context.

Neglecting Tax Aspects: The Painful Surprise

Madagascar’s real estate taxation has specificities that many buyers, especially foreigners, tend to underestimate. This neglect can lead to significant additional costs and administrative complications.

Main tax aspects to consider:

• Registration fees upon purchase (approximately 6% of price)
• Annual property tax
• Income tax on rental earnings for investment properties
• Potential capital gains upon resale
• Specific rules for non-residents

Taxation can vary depending on property status (vacant land, built property, agricultural…) and your own tax status. It’s crucial to research thoroughly beforehand and include these costs in your overall budget.

Consult an accountant or tax lawyer familiar with the Malagasy context. They can help optimize your tax situation legally.

Skipping Professional Assistance: The False Economy

To save money or from overconfidence, some buyers choose to manage their Malagasy real estate acquisition alone. This approach can prove very risky and ultimately more expensive.

Professionals whose expertise is valuable:

• A licensed real estate agent for search and negotiation
• A notary to secure transaction and legal aspects
• A specialized lawyer for complex legal questions
• A building expert for technical property evaluation
• An accountant or tax specialist to optimize financial aspects

These professionals know local market subtleties, pitfalls to avoid, and can save you valuable time. Their expertise can prevent costly mistakes and secure your investment.

Choose recognized professionals, ideally recommended by other expatriates or your embassy. Don’t hesitate to verify their references and qualifications.

Conclusion: The Key to Successful Purchase in Madagascar

Investing in Malagasy real estate can be an enriching and potentially very profitable experience. However, as we’ve seen, many pitfalls await the unprepared buyer.

The key to success lies in meticulous preparation, good understanding of local context, and appropriate professional support. Take time to research thoroughly, visit multiple properties, and surround yourself with reliable experts.

Remember that each Madagascar region has its specificities. What applies to a purchase in Antananarivo won’t necessarily be applicable to Nosy Be or Tamatave. Adapt your approach according to chosen location.

Finally, keep in mind that real estate purchase in Madagascar is often more than just financial investment. It’s also immersion in a rich and fascinating culture. Take time to discover the country, its people, and customs. This open-mindedness will help you better understand your project and derive full satisfaction.