An overview of the property business in Madagascar
The growth of Antananarivo, between tradition and modernity

The Malagasy property business is flourishing, despite a few constraints, thanks to three factors: privatisation of comunications and oil distribution companies; establishment of foreign mining companies; the government's effort to build schools and clinics.

The importance of the government in property business

With more than 1,100 schools and 100 clinics built between 2002 and 2005, as well as public buildings restoration, the government, supported by its financial backers, is the biggest investor in this sector

Residence in Ivandry and a hotel residence, upper town, Antananarivo Projects centralised in Antananarivo

As the capital town, Antananarivo concentrates most of the new projects, even though the hilly environment, the small individual properties and the fuzzy urban legislation might seem hostile to great real estates projects.

Within the last five years, the construction of new major roads across and around the city opens new horizons and opportunities for urban planning.

Ankorondrano and Zital towerConstraints

Difficult access to funding : Both property developers and purchaser cannot easily have access to financing, because of abusive interest rates and warranties.

Need of a qualified workforce: Though recent projects have improved qualification of many workers, a permanent training structure should be set up in order to prevent workforce shortage for future projects.

Ground law enforcement: Procedures are difficult and disputes are frequent.

Continuously rising construction costs.