Real Estate Prices: Madagascar Cities Compared

Published on October 4, 2025 and written by Cyril Jarnias

Real estate in Madagascar offers interesting opportunities for investors seeking new horizons. With its varied landscapes, ranging from paradise beaches to tropical forests and developing cities, the Big Island is increasingly attracting international buyers’ attention. In this article, we will explore price differences between major Malagasy cities and attempt to predict market evolution in the coming years.

The Great Divide: A Closer Look at Real Estate Prices in Malagasy Metropolises

Madagascar presents a contrasting real estate market, with significant price differences between its main cities. This diversity offers options for all budgets and all types of investors.

Antananarivo, the Multifaceted Capital

Antananarivo, nicknamed Tana by locals, is the economic and political heart of Madagascar. Real estate prices here are naturally higher than in the rest of the country, reflecting its capital status and attractiveness for businesses and expatriates.

In downtown Antananarivo, the average price for a one-bedroom apartment is about 1,650,000 MGA (€334) per month. For a more spacious three-bedroom apartment, expect to pay around 2,000,000 MGA (€404) monthly. These figures are significantly lower than rents in major European cities, which could represent an interesting opportunity for foreign investors.

Regarding purchases, the price per square meter for an apartment outside the city center is about 2,250,000 MGA (€454). This price difference between the center and periphery offers varied investment opportunities, whether for rental or personal residence.

Toamasina (Tamatave), the Eastern Sea Gateway

Toamasina, also known as Tamatave, is Madagascar’s second-largest city and home to the country’s main port. Real estate prices here are generally more affordable than in Antananarivo, reflecting a less diversified but growing economy.

Toamasina’s real estate market is particularly attractive for investors looking to benefit from port sector development and coastal tourism. Downtown apartment prices are about 20-30% cheaper than in Antananarivo, offering good value for potential buyers.

Nosy Be, the Northwestern Tourist Gem

Nosy Be, nicknamed “the perfumed island,” is a popular tourist destination that attracts many visitors each year. The island’s real estate market is primarily oriented toward the tourism sector, with strong demand for luxury villas and bungalows.

Real estate prices in Nosy Be are generally higher than on the mainland, due to tourist demand and limited available land. However, they remain attractive compared to international standards. Investors can find interesting opportunities starting from €50,000 for properties suitable for seasonal rental. This market segment offers high rental yield potential, particularly during peak tourist season.

Mahajanga (Majunga), the City of Flowers

Mahajanga, located on Madagascar’s northwest coast, is a booming coastal city. Its real estate market is dynamic, driven by tourism development and port infrastructure.

Real estate prices in Mahajanga are generally more affordable than in Antananarivo or Nosy Be, while offering pleasant living conditions and interesting growth prospects. Investors can find opportunities in residential and tourism sectors, with prices per square meter about 30-40% cheaper than in the capital.

Future Outlook: What Trends for the Malagasy Real Estate Market?

The evolution of Madagascar’s real estate market is closely tied to the country’s economic development and its ability to attract foreign investment. Several factors suggest continued sector growth in the coming years.

Promising Economic Growth

Madagascar has experienced stable economic growth in recent years, despite challenges posed by the COVID-19 pandemic. This positive trend should continue, supported by investments in infrastructure, tourism, and natural resource exploitation.

Economic growth typically translates to increased real estate demand, both for housing and commercial spaces. We can therefore expect a gradual rise in real estate prices in the country’s main cities.

Tourism Development, a Driver for Real Estate

Madagascar’s tourism sector has strong growth potential, particularly thanks to its unique natural assets and diversified offerings. This tourism expansion should positively impact the real estate market, especially in coastal areas and popular destinations like Nosy Be.

Investors could benefit from this trend by positioning themselves in the seasonal rental market or investing in hotel projects. Growing demand for quality accommodations could lead to price increases in tourist areas.

Growing Urbanization, a Challenge and Opportunity

Rural exodus and rapid urbanization in Madagascar are creating pressure on the real estate market in major cities, particularly Antananarivo. This trend should continue in coming years, leading to increased demand for affordable, quality housing.

Investors who can meet this demand, particularly by developing real estate projects in expanding suburban areas, could benefit from this dynamic. We can expect gradual price appreciation in these areas as infrastructure develops and demand increases.

Challenges to Address for Sustainable Growth

Despite these positive outlooks, the Malagasy real estate market faces several challenges that could influence its evolution:

– Infrastructure improvement (roads, electricity, water) remains a major challenge for real estate development, particularly in suburban and rural areas. – Securing land titles and simplifying administrative procedures are essential to attract more foreign investment. – The need to develop affordable housing to meet growing demand from the emerging middle class.

Conclusion: Madagascar, an Emerging Real Estate Market

The Malagasy real estate market offers varied opportunities for investors, with significant price differences between the country’s main cities. Antananarivo remains the nerve center with the highest prices, while cities like Toamasina and Mahajanga offer more affordable alternatives with interesting growth potential. Nosy Be stands out with its high-end tourist market, attracting investors to the seasonal rental sector.

Market evolution prospects are encouraging, driven by economic growth, tourism development, and increasing urbanization. However, investors must remain aware of specific challenges in the Malagasy context, particularly regarding infrastructure and land security.

For those ready to explore this emerging market, Madagascar offers attractive return potential and the opportunity to participate in the economic development of a country with exceptional natural and cultural resources.