Real Estate Financing in Madagascar: A Practical Guide

Published on October 4, 2025 and written by Cyril Jarnias

Madagascar Island, with its paradise landscapes and real estate development potential, is attracting more and more foreign investors. However, obtaining real estate financing in this country may seem complex for non-residents. This article will guide you through the different steps and conditions to make your real estate project on the Big Island a reality.

Doors Open for Foreign Investors

Good news for international investors: it’s entirely possible to obtain real estate financing in Madagascar, even as a foreigner. The country has implemented policies favorable to foreign investment in the real estate sector, recognizing their importance for the island’s economic development.

Several banks and financial institutions in Madagascar offer real estate loans to non-residents. However, it’s important to note that conditions may be slightly different from those applied to Malagasy residents. Interest rates, for example, may be somewhat higher for foreigners, and repayment terms may be shorter.

It’s recommended to approach major banks present on the island, such as BNI Madagascar, BOA (Bank of Africa), or BFV-SG (Société Générale). These institutions are accustomed to dealing with international clients and can offer solutions tailored to your situation.

The Winning File: Essential Documents

To maximize your chances of obtaining real estate financing in Madagascar, it’s crucial to prepare a strong and complete file. Here’s the list of generally required documents:

• Valid passport
• Proof of address in your country of residence
• Bank statements from the last 6 months
• Proof of income (pay stubs, tax notices, etc.)
• Employment contract or documents proving your professional activity
• Detailed financing plan for your real estate project
• Quote or purchase agreement for the targeted property
• Life insurance certificate (often required to guarantee the loan)

It’s important to note that all these documents will need to be translated into French if they aren’t already, and some will need to be legalized or apostilled according to the bank’s requirements.

Additionally, if you plan to purchase a property for rental purposes, it would be wise to present a market study and rental income projections. This will show your seriousness and could reassure the bank about the viability of your project.

Keys to Success: Conditions and Eligibility Criteria

To obtain real estate financing in Madagascar as a foreigner, several conditions must be met. Here are the main criteria banks will use to evaluate your application:

1. Financial Stability

Malagasy banks place great importance on the applicant’s financial stability. You’ll need to demonstrate regular and sufficient income to cover the loan payments. Generally, the debt-to-income ratio should not exceed 33% of your monthly income.

2. Substantial Personal Contribution

A significant personal contribution is often required for foreign investors. It can range between 20% and 40% of the total property amount, depending on the banks and your profile. The larger your contribution, the better your chances of obtaining financing under favorable terms.

3. Strong Guarantees

• A mortgage on the real estate property
• A personal or bank guarantee
• A pledge on a savings account or financial securities

4. Viable Real Estate Project

Your real estate project must be clearly defined and economically viable. If you’re buying to rent, for example, you’ll need to demonstrate the property’s rental potential and its ability to generate sufficient income to cover loan repayments.

5. Loan Term

Loan terms for non-residents are generally shorter than for Malagasy residents. They can range between 10 and 20 years, depending on the banks and your profile.

6. Borrower’s Insurance

Borrower’s insurance is mandatory. It can be obtained from a Malagasy or international insurance company, subject to the bank’s acceptance.

Strategies to Optimize Your Chances

To maximize your chances of obtaining real estate financing in Madagascar, here are some strategies to consider:

1. Collaborate with a Local Broker

Working with a real estate broker based in Madagascar can greatly facilitate your procedures. These professionals know the local market well and the requirements of different banks. They can help you build a strong file and negotiate the best loan terms.

2. Consider a Partnership with a Malagasy Resident

If you encounter difficulties obtaining financing alone, you might consider partnering with a Malagasy resident. This can facilitate loan approval and potentially allow you to access better terms.

3. Demonstrate Your Long-Term Commitment

Banks will appreciate seeing that you have a long-term project in Madagascar. If you plan to settle on the island or develop economic activity there, highlight this in your file.

4. Be Transparent About Your Financial Situation

Transparency is crucial. Don’t hesitate to provide detailed information about your financial situation, your other investments, and your future projects. This will strengthen the bank’s confidence in your ability to repay the loan.

5. Prepare for Negotiation

Loan terms are often negotiable. Prepare to discuss interest rates, loan terms, and required guarantees. The more prepared you are, the better your chances of obtaining favorable conditions.

Conclusion: A Promising Investment, But Requiring Meticulous Preparation

Obtaining real estate financing in Madagascar as a foreigner is entirely possible, but it requires meticulous preparation and a good understanding of the local market. By following this guide’s advice, preparing a strong file, and demonstrating patience and perseverance, you’ll significantly increase your chances of making your real estate project on the Big Island a reality.

Madagascar offers beautiful real estate investment opportunities, with a growing market and breathtaking landscapes. Whether you want to acquire a secondary residence, a rental property, or develop a more ambitious real estate project, the doors of financing are open to motivated and well-prepared foreign investors.

Remember that each situation is unique. Don’t hesitate to consult local professionals (bankers, brokers, lawyers) to obtain personalized advice tailored to your specific project. With the right approach and adequate preparation, your real estate dream in Madagascar can become a financially viable and rewarding reality.