Long-Term Property Rental in Madagascar

Published on October 4, 2025 and written by Cyril Jarnias

Real estate in Madagascar offers compelling opportunities for investors seeking to diversify their portfolios and generate stable rental income. Long-term rentals on the Big Island indeed present numerous advantages, provided you thoroughly understand the local market specifics. In this article, we provide a comprehensive guide to successfully managing your long-term real estate rental project in Madagascar.

The Malagasy Rental Market: Untapped Potential

The real estate rental market in Madagascar has experienced sustained growth for several years, driven by rapid urbanization and the influx of expatriates into major cities like Antananarivo. Demand is particularly strong for upscale apartments and houses in sought-after neighborhoods of the capital, as well as in coastal tourist cities like Nosy Be or Tamatave.

According to data from Immobilier Conseil Madagascar, average rents for a furnished three-bedroom apartment in central Antananarivo range between 1.5 and 2.5 million ariary per month (approximately $350 to $600). Gross rental yields can reach 8-10% in certain sectors, significantly higher than yields observed in Europe.

However, the market remains relatively opaque and poorly regulated. Therefore, it’s essential to conduct thorough research and work with professionals to secure your investment. Establishing a solid contractual framework is crucial for peaceful long-term rentals.

Creating a Rock-Solid Lease Agreement: Key to Successful Renting

Drafting a detailed lease agreement that complies with Malagasy legislation is a crucial step to securing your rental investment. Here are the main elements to include in your lease:

• Precise identification of parties (landlord and tenant)
• Detailed description of the rented property (address, area, amenities, etc.)
• Lease duration (typically 1 to 3 years for long-term rentals)
• Rent amount and payment terms
• Security deposit amount and conditions
• Distribution of expenses between owner and tenant
• Maintenance and repair conditions for the property
• Lease termination and renewal clauses

It’s highly recommended to engage a notary or specialized attorney to draft your lease agreement. These professionals are thoroughly familiar with Malagasy legislation and can advise you on clauses to include to protect your interests.

Don’t forget to have the contract translated into Malagasy if your tenant isn’t French-speaking. Notarizing the lease isn’t mandatory but can provide additional legal security.

Finally, remember to create a detailed move-in inspection report, ideally conducted by a professional. This document will be invaluable in case of disputes over the property’s condition at the end of the lease.

Setting the Right Price: The Delicate Art of Rental Pricing

Setting the rent is a crucial step that requires good knowledge of the local market. Rent that’s too high may scare away potential tenants, while rent that’s too low will impact your profitability.

To determine the right price, several factors must be considered:

• Property location (neighborhood, proximity to amenities)
• Area and number of rooms
• Overall condition and housing amenities
• Services provided (parking, security, etc.)
• Local market competition

It’s recommended to have a rental estimate done by a local real estate agency. These professionals know the market thoroughly and can advise you on the optimal rent for your property.

As a reference, here are some price ranges observed in Antananarivo in 2025:

• Furnished studio in city center: 800,000 to 1,200,000 Ar/month
• Furnished two-bedroom apartment: 1,200,000 to 1,800,000 Ar/month
• Four-bedroom house with garden: 2,500,000 to 4,000,000 Ar/month

Remember that rent can be indexed annually based on the consumer price index published by INSTAT (National Institute of Statistics of Madagascar). This indexing clause must be explicitly mentioned in the lease agreement.

Cultivating Harmonious Relationships with Your Tenants: Key to Peaceful Management

Managing relationships with your tenants is a crucial aspect of ensuring the longevity and profitability of your rental investment in Madagascar. Smooth communication and cordial relations will help you avoid many inconveniences.

Here are some tips for maintaining good relationships with your tenants:

• Be responsive in case of problems or intervention requests
• Regularly perform necessary maintenance work
• Respect your tenants’ privacy (no unannounced visits)
• Be flexible about minor modifications (painting, wall fixtures)
• Communicate clearly about rent increases

It’s also crucial to carefully select your tenants upfront. Don’t hesitate to request solid financial guarantees (security deposit, income verification) and check candidate references.

If you don’t reside in Madagascar or own multiple properties, it may be wise to entrust rental management to a specialized agency. These professionals will handle all administrative tasks (rent collection, follow-ups, etc.) and technical aspects (interventions, repairs) to free you from these constraints.

Legal and Tax Aspects: Points of Caution

Real estate rentals in Madagascar are subject to specific legal and tax frameworks that must be well understood to avoid any problems.

Legally, Law No. 2015-052 of December 16, 2015 governs landlord-tenant relationships. It specifically regulates lease termination conditions, maintenance obligations, and rent adjustment procedures. It’s highly recommended to consult a specialized attorney to ensure your lease agreement complies with this legislation.

On the tax side, rental income is subject to property income tax (IRF) at a 20% rate. Deductible expenses notably include management fees, maintenance work, and loan interest. It’s advisable to engage a local accountant to optimize your tax situation and meet your reporting obligations.

Finally, don’t forget to obtain non-occupant owner insurance (PNO) to cover your civil liability as a landlord.

Conclusion: A Promising Investment Provided You’re Well-Prepared

Long-term real estate rentals in Madagascar offer interesting prospects for savvy investors. The attractive yields and dynamic rental market in major cities like Antananarivo make it an appealing option for diversifying your assets.

However, successfully managing a rental project on the Big Island requires meticulous preparation and good knowledge of local specifics. From drafting the lease agreement to managing tenant relationships, including setting the rent, each step requires particular attention.

By surrounding yourself with competent professionals (notary, real estate agent, accountant) and scrupulously respecting the legal framework, you’ll maximize your chances of making your rental investment in Madagascar a long-term success.