Published on and written by Cyril Jarnias
Madagascar’s real estate market is currently undergoing a period of transformation and opportunity. Between economic development and growing tourism appeal, the Great Island offers remarkable potential for savvy investors. Let’s dive into the trends shaping Madagascar’s real estate market in 2025.
Madagascar Real Estate Hotspots: Where to Invest in 2025?
The Malagasy real estate market features varied dynamics across different regions. Certain areas stand out particularly and are attracting attention from both local and international investors.
Antananarivo: The Beating Heart of Real Estate
The Malagasy capital remains the nerve center of the country’s real estate activity. Antananarivo is experiencing rapid urbanization, fueled by constantly increasing real estate demand. Business districts like Ankorondrano and Andraharo are particularly sought after, driven by the establishment of new companies and growth in the service sector.
Key points to consider in the capital:
- The upscale residential areas of Ivandry and Ankadimbahoaka
- The development of commercial and residential complexes
- Growing demand for housing for expatriate executives
Nosy Be: The Booming Tourist Gem
Nicknamed “the perfumed island,” Nosy Be confirms its position as a privileged tourist destination. The real estate market there is particularly dynamic, especially in the vacation home and hotel complex sectors.
Opportunities to explore in Nosy Be:
- Seaside land for tourism projects
- Secondary residences with seasonal rental potential
- Boutique hotels and eco-lodges
Tamatave (Toamasina): The Expanding Maritime Gateway
As the country’s main port, Tamatave is experiencing significant development linked to port and industrial activities. The real estate market there is driven by stable local demand and expanding economic activity.
Promising sectors in Tamatave:
- Commercial real estate near port areas
- Housing for industrial sector executives
- Mixed commercial and residential projects
Good to know:
Savvy investors should pay particular attention to these three strategic areas – Antananarivo, Nosy Be, and Tamatave – each offering unique opportunities in the Malagasy real estate landscape.
Price Evolution: A Market in Full Transformation
The Malagasy real estate market is experiencing contrasting price evolution, reflecting the country’s economic and demographic dynamics.
Antananarivo: Moderate but Steady Increase
In the capital, real estate prices are experiencing regular increases, particularly in sought-after neighborhoods and business districts. This rise is supported by growing demand for quality housing and modern office spaces.
Nosy Be: Prices Driven by Tourism
On the paradise island of Nosy Be, real estate prices are strongly influenced by the tourism sector. Seaside properties and buildable land for hotel projects are seeing their values increase significantly.
Tamatave: A Developing Market
In Tamatave, real estate prices are experiencing more moderate but steady growth, driven by the city’s economic development and its strategic role in the country’s maritime trade.
Good to know:
Although prices are rising in these key areas, they remain relatively affordable compared to other international real estate markets, thus offering interesting capital gain potential for investors.
Promising Segments: Where to Place Your Bets in 2025?
The Malagasy real estate market offers various investment opportunities, each with its own advantages and return potential.
Residential Real Estate: A Safe Bet
The residential sector remains a preferred choice for many investors. Growing housing demand, particularly in large cities like Antananarivo, offers interesting prospects.
- Modern apartments in developing neighborhoods
- Single-family homes in sought-after residential areas
- Secure residences for affluent and expatriate clients
Tourism Real Estate: A Booming Sector
With Madagascar’s growing appeal as a tourist destination, investing in tourism-oriented properties presents strong potential.
- Vacation villas in Nosy Be and along the coasts
- Small boutique hotels in tourist areas
- Ecotourism complexes in preserved regions
Commercial Real Estate: A Diversification Option
Madagascar’s economic development is creating growing demand for commercial and office spaces, particularly in large cities.
- Modern offices in Antananarivo’s business districts
- Commercial spaces in high-traffic areas
- Warehouses and industrial premises near port areas like Tamatave
Good to know:
Diversification is key in Madagascar real estate investment. Combining residential, tourism, and commercial properties can offer a balance between stable rental income and long-term capital gain potential.
Outlook and Opportunities for 2025 and Beyond
The Malagasy real estate market presents encouraging prospects for the coming years, supported by several key factors:
Infrastructure Development
The Malagasy government has launched several major infrastructure projects, particularly in transportation and energy. These developments should have a positive impact on real estate value in the affected areas.
Emergence of an Urban Middle Class
Growing urbanization and economic development are fostering the emergence of a middle class, creating new demand for quality housing and modern commercial spaces.
Growing Appeal for International Investors
Madagascar is increasingly attracting attention from foreign investors, particularly in tourism and real estate sectors. This trend should continue, further stimulating the real estate market.
Sustainable Development Potential
With its unique biodiversity and natural resources, Madagascar offers interesting opportunities for ecological and sustainable real estate projects, in line with global trends.
Good to know:
Although the Malagasy real estate market offers great opportunities, it’s essential to thoroughly research the country-specific legal and regulatory aspects before investing. Support from local professionals is strongly recommended.
Conclusion: A Promising Market to Approach Strategically
The Malagasy real estate market in 2025 presents itself as fertile ground for savvy investors. Between opportunities in large cities like Antananarivo and Tamatave, and the tourism potential of destinations like Nosy Be, Madagascar offers a range of options to diversify your real estate portfolio.
However, as with any foreign investment, it’s crucial to adopt a cautious and well-informed approach. Understanding local specifics, both in terms of regulations and market dynamics, is essential for successful real estate investment in Madagascar.
For those who can navigate this evolving market, the rewards can be substantial, combining attractive returns with participation in the economic development of a country with immense potential.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
