Madagascar’s property market offers a compelling combination of low entry prices, sustained urbanisation, and expanding tourism activity. These fundamentals continue to attract investors looking for long-term value, in a market where yields remain high and competition is still limited.

As the country approaches 2026, demand is driven primarily by Antananarivo and major port cities, alongside tourism-oriented coastal destinations. This article provides an investor-focused overview of market dynamics, pricing benchmarks, and strategic considerations, focusing on practical decision-making rather than short-term forecasts.

Tl;dr: Madagascar’s property market in 2026 combines low entry prices with high rental yields, driven by urbanisation in Antananarivo and tourism growth in coastal destinations such as Nosy Be. If you are considering a property investment in Madagascar, do not hesitate to contact Madagascar Invest for guidance and opportunities.

Context and Data Limitations

Madagascar does not publish official house price indices, nor does it maintain a centralised land or housing database. As a result, rigorous real-estate market analysis is inherently more complex than in mature or highly transparent markets.

Housing finance and real-estate data are collected infrequently and are often outdated. Information is fragmented across multiple institutions, including the IMF, World Bank, African Development Bank, Banque Centrale de Madagascar, and the national statistics office.

Against this backdrop, any outlook for 2026 must rely on triangulation between international databases, crowd-sourced indicators, and field-level observations. This article therefore provides a reasoned overview of Madagascar’s property market trends and prospects for 2026, rather than precise forecasts.

Evolution of Madagascar’s Real-Estate Trends

Urbanisation and demographic growth continue to underpin housing demand, particularly in Antananarivo and major secondary cities such as Toamasina and Mahajanga. These cities benefit from their role as administrative, economic, and port hubs, which sustains demand from local professionals, expatriates, NGOs, and corporate tenants.

In parallel, tourism-oriented regions such as Nosy Be, Sainte-Marie, and selected coastal resort zones attract a distinct segment of lifestyle-driven investors. Investment in these areas typically focuses on villas, small resorts, and serviced plots rather than large-scale residential developments.

Between 2023 and 2025, crowd-sourced indicators suggest rising, but still comparatively low purchase prices per square metre.

Drivers and Challenges Shaping the 2026 Outlook

Key Demand and Price Drivers

Several structural factors are expected to support demand and prices in 2026:

• Continued urban population growth and household formation in Antananarivo and major port cities such as Toamasina and Mahajanga.
  
• Progressive development of tourism and eco-tourism in Nosy Be, Sainte-Marie, and other coastal destinations, supporting land and villa prices and driving demand for small-scale hospitality projects.
  
• Strong rental yields in Antananarivo’s city centre, where gross yields remain significantly higher than in many regional and international comparators.

Structural Constraints and Risk Factors

At the same time, investors must contend with persistent challenges:

• Land governance issues, complex titling procedures, and overlapping customary and formal land rights.
  
• Infrastructure deficits, particularly in roads, electricity, and water supply, which increase development and operational risk.
  These constraints reinforce the need for robust due diligence, especially for foreign and institutional investors.

Current Price Benchmarks and Implied Trends for 2026

Urban and Rural Indicators

As of 2025, indicative residential benchmarks in urban cities are as follows:

• Price per m² to buy an apartment in the city centre: approximately 2,966,667 MGA, with a wide range from roughly 1.8 to 5 million MGA depending on micro-location and quality.
  
• Price per m² outside the city centre: around 2,636,090 MGA, with most transactions clustered between 2.4 and 3 million MGA per m².
  
• Monthly rent: approximately 1.9 million MGA for a one-bedroom apartment in the city centre, and about 2.3–2.4 million MGA for a three-bedroom unit.

These levels imply a gross rental yield of around 12% in the city centre and just above 6% outside the centre.

Assuming moderate economic growth and no major political disruption, these indicators support a scenario of modest nominal price appreciation in 2026, particularly for well-located, good-quality city-centre properties.

Rental yields may compress slightly if prices rise faster than rents, though they are likely to remain attractive by international standards.

Tourism-oriented properties

Estimated rental yields in the 8-15% range suggest that 2026 will remain favourable for well-located coastal assets. Appreciation potential is strongest for serviced land and villas in prime locations, provided investors adequately factor in currency risk, political risk, and management quality.

Market opportunity assessment by property type and investor profile

By Property Type (2026 Perspective)

• Urban apartments (Antananarivo, Toamasina): Core opportunity for rental-yield strategies targeting professionals, expatriates, and NGOs. Key success factors include security, parking, and reliable utilities.
  
• Villas and townhouses: A niche but expanding segment catering to upper-income local and foreign owner-occupiers, with potential for mixed own-use and short-term rental.
  
• Tourism villas and boutique resorts (Nosy Be, Sainte-Marie): Higher capital requirements but strong yield and appreciation potential when professionally managed and marketed internationally.
  
• Serviced land: A strategic option for investors comfortable with development risk, where value creation comes from planning, servicing, and later resale or construction.

By Investment Profile

• Income-focused investors may prioritise city-centre rental apartments in Antananarivo, where gross yields near 12% allow for sustainable cash flow even under conservative occupancy assumptions.
  
• Growth-oriented investors may target tourism corridors and selected secondary cities where infrastructure upgrades or tourism expansion could unlock higher medium-term capital gains.

Strategic Recommendations for Property Market Investors in 2026

Prioritise due diligence over speed: Meticulously verify land titles, zoning, access rights, and service connections, particularly in coastal and peri-urban areas where informal arrangements remain common.

Stress-test returns under low leverage assumptions: Model scenarios with limited access to local mortgages, high financing costs, and reliance on equity or offshore borrowing.

Focus on segments with structural demand: Urban rentals in Antananarivo and select port cities, alongside well-positioned tourism assets in destinations such as Nosy Be, appear among the most resilient segments.

Partner locally: Collaboration with experienced local legal, notarial, and property-management professionals is essential to navigate regulation, permitting, and daily operations in a thin and information-poor market.

Key Notes

• Market data are fragmented, requiring triangulation and on-the-ground analysis.
• Urban residential demand is structurally supported in Antananarivo and major cities.
• Gross rental yields remain high, particularly in city-centre apartments and tourism assets.
• Property prices are low by international standards, supporting modest appreciation potential.
• Land tenure, infrastructure, and financing constraints remain the main risk factors.
• The market favours equity-driven, patient investors with local partners.

Conclusion

In 2026, Madagascar’s property market offers attractive opportunities for investors looking for rental income and medium-term growth. Urban rental properties can provide steady cash flow, while tourism-focused assets offer higher return potential for those able to manage the associated risks.

Success in Madagascar is less about market timing and more about doing things properly: careful due diligence, realistic financial assumptions, and strong local knowledge are key. For investors considering opportunities in the country, working with an experienced local partner such as Madagascar Invest can greatly simplify the process and improve outcomes.