Green Real Estate in Madagascar: 2025 Standards and Subsidies

Published on October 4, 2025 and written by Cyril Jarnias

At the Dawn of 2025: Sustainable Real Estate in Madagascar

At the dawn of 2025, Madagascar’s real estate sector is decisively turning toward more environmentally respectful practices, driven by the establishment of new ecological standards and increased subsidies aimed at encouraging green construction.

While the island, rich with its unique biodiversity, faces pressing environmental challenges, the commitment to sustainable architecture aligns with a desire to combine economic development with the preservation of this precious ecosystem.

This article explores how favorable policies and financial incentives are transforming Madagascar’s real estate landscape, gaining support from developers and individuals eager to participate in the ecological transition of housing.

Eco-Construction in Madagascar: A Guide to a Sustainable Future

Eco-Construction in Madagascar: Between Tradition and Sustainable Innovation

Madagascar now positions itself at the intersection of ancestral building practices and modern ecological innovations. This unique approach addresses environmental challenges while valuing local architectural heritage.

Local and Sustainable Materials Available on the Island

The Red Island offers a rich palette of ecological materials suited to its climate and traditions:

• Bamboo, a fast-growing renewable resource, offers an excellent strength-to-weight ratio, though it requires proper treatment to ensure durability
• Adobe (raw earth), locally available, provides excellent thermal insulation properties and a low carbon footprint
• Rammed earth, characterized by its low embodied energy and natural insulating properties
• Recycled materials, contributing to the circular economy and enabling creative designs

The most recent innovation comes from Plastikôo Madagascar, a startup that won the Middle East & Africa prize at the Orange Summer Challenge 2024. This company transforms plastic waste into modular bricks that snap together like Legos. These bricks are resistant, waterproof, and require no cement or glue, thereby reducing the construction’s carbon footprint with an estimated lifespan of 50 years. The process primarily uses LDPE and PP, melted at high temperature and molded into bricks reinforced with a metal frame, offering resistance to moisture and termites.

Regulatory Framework and Government Initiatives

The Malagasy government has begun establishing a regulatory framework favorable to eco-construction. Decree No. 2021-1941 of December 31, 2021, regarding extended producer responsibility for construction products and materials, constitutes an important first step. For 2025, new measures are being prepared to strengthen these provisions.

Initiative	Description	Timeline
Extended Producer Responsibility	Obligation for construction material manufacturers to manage the end-of-life of their products	In effect since 2021
Enhanced Thermal Insulation	New insulation standards adapted to the Malagasy climate	Gradual implementation until 2025
Responsible Construction Techniques	Promotion of construction methods with low environmental impact	Currently being deployed

Exemplary Projects and Local Initiatives

• The Plastikôo transformation workshop, which plans to recycle a significant amount of plastic waste and expand its range of ecological construction materials
• Community initiatives using traditional earth construction techniques, adapted to local climatic conditions
• Pilot projects integrating bamboo and recycled materials into modern constructions

Challenges and Future Prospects

Despite these promising advances, several challenges persist:

• Limited access to training in eco-construction techniques
• Sometimes higher initial cost of sustainable materials
• Cultural resistance to changing construction practices

The Wildlife Madagascar strategic plan for 2025-2030 emphasizes the importance of integrating environmental preservation into construction practices, creating synergy between economic development and the protection of the island’s unique biodiversity.

The future of eco-construction in Madagascar depends on its ability to combine traditional knowledge and technological innovations, while developing local economic sectors around sustainable materials. This approach will not only reduce the environmental impact of the building sector but also create economic opportunities for local communities.

Ecological Standards and BREEAM Certification: Enhancing Construction Impact

In Madagascar, the ecological standards applied in the building sector primarily stem from frameworks developed by the Madagascar Standards Bureau (BNM). These standards cover several areas such as environment, construction, and agri-food. They notably incorporate requirements related to sustainable resource management, energy efficiency, and the preservation of local biodiversity.

Alignment with international standards is progressing gradually. While some Malagasy buildings are designed according to ecological architecture principles without necessarily aiming for formal international certification (such as BREEAM or LEED), there is growing interest in these labels, which provide global recognition and a structured framework for assessing and improving a real estate project’s environmental performance.

BREEAM Assessment Criteria

The BREEAM (Building Research Establishment Environmental Assessment Method) certification is globally recognized as a scientific standard for validating and certifying sustainable development in the building sector. It is based on a scoring system covering several key categories:

Category	Examples of Assessed Criteria
Management	Sustainable site planning
Health & Well-being	Indoor air quality
Energy	Overall energy efficiency
Transport	Access to public transportation
Water	Rational management of water resources
Materials	Responsible and traceable use
Waste	Reduction/valorization during construction
Ecological Use	Preservation of local biodiversity

The method assigns a score based on these axes and then delivers a rating up to “Excellent” or “Outstanding.” The goal is to encourage not only technical innovation but also better environmental integration from the design phase.

BREEAM’s Role in Promoting Green Buildings

BREEAM plays a driving role by promoting:

The systematic integration of climate issues from the earliest architectural phases.

Economic valorization through increased attractiveness to investors sensitive to sustainable development.

Increased awareness among the local public about the social, health, and economic benefits associated with green construction.

Examples in Madagascar

To date, there is no publicly documented example—nor in recent sources—of a real estate project that has officially obtained BREEAM certification in Madagascar. However, several projects voluntarily adopt certain criteria from this international approach to improve their environmental performance or as part of a future ambition toward this type of recognition. Many currently prioritize:

Increased use of local bio-based materials,

Passive systems to limit energy needs,

Rational management of rainwater,

Systematic valorization of construction site waste.

Challenges Encountered

The main challenges are:

The additional cost associated with the international certification process.

The relative lack of local experts specifically trained in BREEAM standards.

A national regulatory context still in a transitional phase toward greater harmonization with international requirements.

Identified Opportunities:

Rapid strengthening of human capital through technology transfer via international partnerships.

Increased real estate value in the national/regional market thanks to these globally recognized labels.

Direct contribution to the 2030 Sustainable Development Goals through significant reduction of the building carbon footprint.

Potential Impact:
Widespread or gradual adoption of standards aligned with those such as BREEAM could enable Madagascar to:

Accelerate its transition toward low-carbon urbanism,

Effectively respond to challenges related to island climate change,

Position its regional metropolises as African models in green real estate by 2025.

Renewable Energy Subsidies in Madagascar: Crucial Support for the Green Real Estate Sector

Various types of subsidies are available in Madagascar to support renewable energy, particularly in the green real estate sector. These financial aids come from government actors, international organizations, and NGOs, and aim to encourage the integration of sustainable energy solutions into real estate projects.

Types of Available Subsidies for Renewable Energy

Direct investment subsidies (solar, hydroelectric, mini-grids)

Concessional or blended loans combining public/private funds

Funding dedicated to individual or collective solar kits

Technical support and capacity building for green project design

Type of Subsidy	Source	Targeted Sectors
Direct Subsidy	EU, AFD, World Bank	Solar mini-grids, hydro
Concessional Loan/Blending	EU (Team Europe), partners	Large hydro dams
Dedicated Fund (e.g., OMDF)	World Bank	Off-grid solar kits

Main Governmental and NGO Actors Involved

Malagasy Government: develops the national energy strategy with an ambitious goal of 85% renewable energy in the energy mix by 2030.

European Union: funds decentralized production via photovoltaic mini-grids and supports the massive increase of hydro potential.

French Development Agency (AFD): co-finances various structuring projects with the EU.

World Bank: mobilizes the Decim Fund and OMDF to accelerate access to green electricity in rural areas through the local private sector.

Private operators like Anka: directly benefit from international funding to develop accessible solar infrastructure.

Eligibility Criteria for Real Estate Developers

Criteria vary by program but generally include:

Effective integration of certified renewable solutions in new or renovated buildings

Project’s capacity to significantly reduce its conventional energy consumption

Demonstrated economic viability of the project over time

Local involvement: qualified local employment or collaboration with national SMEs

Concrete Examples / Case Studies

“Anka already provides solar energy to several hundred beneficiaries in the Grand Sud thanks to European subsidies… Its business model enables energy more affordable than with traditional alternative solutions.”

The OMDF Fund has enabled the distribution by twenty accredited Malagasy companies of over 200,000 solar kits reaching one million people. Local real estate operators have thus been able to equip social collective housing or private subdivisions with these technologies.

Observed Positive Impacts:

Measured reduction of up to 40% on the annual energy bill of buildings equipped with hybrid solar.

Substantial decrease (~50%) in carbon emissions related to heating/sanitary hot water through partial/complete substitution of traditional oil/gas.

Policy Perspectives and Financial Incentives Planned for 2025

The National Energy Pact plans by the end of December 2025 a new national strategy integrating:

A massive increase in the national electricity access rate with rural prioritization;

Strengthening of public/private partnership around clean energies;

The announced tripling of installed green capacities—notably through specific calls to real estate developers committed to the sustainable aspect;

New fiscal incentive mechanisms/simplified procedures explicitly targeting “green real estate” investments.

The initiated momentum should thus enable a gradual generalization of new low-carbon buildings—even accelerated renovation—making possible rapid alignment with international standards while concretely improving urban quality and social inclusion.