Often dubbed the “Indian Ocean’s best-kept secret,” Madagascar presents a compelling opportunity for international investors seeking affordability.
With an expansive coastline spanning over 4,800 kilometers and a rapidly expanding urban population, the island offers a real estate market where property prices remain a fraction of those found in neighboring Mauritius or the Seychelles.
While prices are generally low, they vary significantly based on location, property type, and legal structure. As of early 2026, the market is distinctly split: urban areas are defined by high demand and limited supply, while coastal zones are largely driven by tourism and foreign interest.
Tl; Dr: Madagascar offers exceptionally affordable real estate compared to other Indian Ocean destinations. Prices in major cities and coastal areas follow different logic: urban costs are driven by amenities and infrastructure, while coastal prices are shaped by tourism demand. Madagascar Invest can help you get the property tailored to your needs and budget.
Cost Of Properties in Antananarivo And Major Cities
In Antananarivo, the capital, property values are heavily influenced by accessibility to employment centers, commercial services, schools, and essential infrastructure. Due to high population density and limited land availability, properties in the city center command higher prices than those in outer suburban districts.
- Apartments: City center apartments currently sell for approximately 3,050,400 Ariary per square meter, while suburban apartments average around 2,655,600 Ariary per square meter.
- Houses: In desirable central neighborhoods, a typical house sells for roughly 192,000,000 Ariary (about 42,000 USD). Outside the center, comparable houses are priced closer to 144,000,000 Ariary.
- Luxury Market: High-end villas in secure compounds or near international schools, particularly in areas like Ivato and Ambohibao, often exceed 250,000 USD.
Beyond the capital, major cities such as Toamasina, Mahajanga, and Antsirabe offer lower price points, though demand is growing alongside improving infrastructure and regional economic development. Prices in these secondary cities are heavily contingent upon road access, utility availability, and proximity to commercial hubs.
Coastal and Lifestyle Real Estate
Coastal real estate follows a different pricing logic. Locations such as Nosy Be, Sainte-Marie, and Foulpointe are shaped primarily by tourism activity and foreign demand.
Nosy Be, in particular, is considered the most established coastal market for international buyers and has seen steady price growth in recent years. A well-located building plot close to Ambondrona Beach can cost around 150,000 euros.
Larger beachfront parcels, especially on nearby islands such as Nosy Faly, can reach 700,000 euros or more, depending on size and access.
For buyers looking for completed properties, Nosy Be offers a range of villas aimed at the short-term rental and second-home markets. A standard villa with a pool in a secure residence typically sells for between 135,000 and 190,000 euros.
Higher-end turnkey villas in popular tourist areas like Ambatoloaka are usually priced between 320,000 and 325,000 euros.
At the lower end of the market, simpler beach bungalows or undeveloped coastal plots near Foulpointe can still be found for 10,000 to 70,000 euros, although these often require additional investment in infrastructure.
The Cost of Building vs. Buying
Because Madagascar faces a housing shortage estimated at over 1.7 million units, many buyers choose to purchase land and build rather than buy existing properties. Construction costs increased in 2025 and 2026 due to higher global material prices, but labor costs remain low.
For a house built to modern standards, including proper plumbing, electricity, and basic finishes, construction costs generally range from 800,000 to 2,600,000 Ariary per square meter.
In recent years, the minimum cost for a basic newly built house was around 962,400 Ariary per square meter. For larger developments, some projects reported new-build prices as low as 600,000 Ariary per square meter in 2022.
Although these figures usually apply to simple structures and bulk construction, higher-end builds that rely on imported materials, specialized labor, or custom designs can cost significantly more.
Investment Returns and Rental Yields
Rental returns are one of the main attractions of Malagasy real estate. Due to the limited supply of quality housing, rental demand remains strong. In Antananarivo, apartments located in the city center can generate gross rental yields of up to 12.7%, while properties outside the center typically yield around 7.3%.
Short-term rentals also perform well. The average daily rate for short-term accommodation in Antananarivo is about 55 USD, with higher-end properties earning more during peak periods.
Coastal rental income is more seasonal but can be highly profitable, particularly in Nosy Be.
Vacation villas often command high nightly rates during tourist seasons, sometimes producing higher annual returns than long-term urban rentals.
The price-to-rent ratio in Antananarivo’s city center is currently around 7.85, which is low by international standards and indicates relatively fast capital recovery compared to mature markets where ratios often exceed 20.
Additional Costs and Administrative Fees
Beyond the purchase price, buyers must account for administrative and legal costs. Property registration fees are high, averaging around 9% of the declared property value. The registration process itself is slow, with timelines of approximately 100 days being common.
Since the system relies heavily on paper records, professional title verification is strongly recommended and usually costs between 1% and 3% of the transaction value.
For foreign buyers, direct land ownership is restricted, and most acquisitions are structured through long-term emphyteutic leases, typically for 99 years. The upfront cost of such a lease is usually similar to a freehold price, but there may be modest ongoing fees related to administration or lease maintenance.
Key Notes
- Madagascar offers exceptionally affordable real estate compared to other Indian Ocean destinations.
- In major cities, prices are driven by proximity to employment hubs, amenities, and infrastructure.
- In coastal areas, tourism demand mainly shapes the prices of property.
- Investors can achieve high gross rental yields, with city center apartments reaching up to 12.7%.
- Foreign buyers are restricted to 99-year emphyteutic leases, necessitating professional assistance for legal security.
- Madagascar Invest bridges the gap for international buyers by securing properties tailored to specific budget requirements.
Conclusion
Compared to other tropical destinations, Madagascar is exceptionally affordable. You can secure a beachfront plot for the price of a small parking space in a major European city. However, the real cost of property here is the time and expertise required to ensure the deal is legally sound.
Navigating the 17-step permit process and the lengthy registration timeline is where most independent investors struggle.
This is where Madagascar Invest steps in. We specialize in bridging the gap between international investors and high-potential Malagasy real estate by offering a vast choice of properties that is sure to meet your requirements. We handle the hard work, from title verification to securing 99-year leases, so you can invest with total confidence in your future assets.
Are you ready to find out exactly what your budget can buy in 2026? Contact Madagascar Invest today for a personalized consultation and a tour of our current turnkey listings.
