Madagascar • Investment • Nosy Be • Luxury Real Estate

Investing in luxury real estate in Madagascar

Villa in Nosy Be, secondary residence, seasonal rental or tourism project: what are the advantages, risks and essential checks before investing?

See the properties guide for buying in Madagascar

Madagascar has compelling arguments to attract real estate investors: an exceptional coastline, international tourism, unique land, villas in Nosy Be, and the potential for high-end accommodation. However, tourism potential and real estate profitability should never be confused.

A magnificent villa can make an excellent second home without necessarily being a profitable rental investment. Conversely, a project intended for tourism development must be analyzed as a genuine economic activity, with its own costs, seasonality, regulations, and management requirements.

The right approach: start by defining what "investing" really means. Are you primarily looking for a property for enjoyment, a second home that can be partially rented out, an asset for seasonal rentals, or a genuine tourism business? The answer determines almost all subsequent decisions.
330 909 non-resident visitors at borders in 2025
62.24 billion Ar in tourism investments recorded in 2025
264 604 Passengers at Nosy Be airport in 2025
+13 % Nosy Be airport traffic in 2025 vs 2024

Why are investors interested in Madagascar?

Tourism is among the sectors identified as investment opportunities by Malagasy institutions. The country benefits from exceptional natural heritage and a strategic location in the Indian Ocean, which favors projects related to accommodation, leisure, and high-end tourism.

🌴 A distinctive destination, Madagascar does not offer a standardized tourist experience. Biodiversity, islands, beaches, landscapes and cultural identity give it a unique international image.
🌊 The seaside potential of Nosy Be, Sainte-Marie and certain sections of the coastline offers environments conducive to villas, holiday residences and tourism projects.
🏡 A wide variety of assets: Individual villa, house with land, prestigious property, small accommodation structure or estate: investment strategies can be very different.
✈️ An international clientele Tourist flows include an international clientele, particularly important for island destinations and luxury products.

Nosy Be: the leading laboratory for high-end tourist real estate

For luxury real estate investment, Nosy Be occupies a special position. The island combines international tourist renown, famous beaches, a developed hotel sector and an airport directly connected to several destinations.

According to the Malagasy Ministry of Tourism, more than 110,000 international passengers and 50,000 domestic passengers were welcomed in just eight months in 2025. The formal capacity was then estimated at around 7,000 rooms, including 500 new upscale rooms added in 2024.

Throughout the year 2025, Fascene Airport recorded 264,604 passengers, representing a 13% increase compared to 2024.

These figures reflect the tourist activity of the destination. However, they do not automatically allow us to deduce the profitability of a particular villa.

→ Luxury real estate in Nosy Be: where to buy a villa?
→ Villas for sale in Nosy Be: Andilana and beachfront

What type of real estate investment should I consider?

Second home: The primary objective is the enjoyment of use and the accumulation of assets. Any rental income is secondary.
Villa with seasonal rental: The owner uses their property for part of the year and seeks to rent it out during certain periods. Management and seasonality then become essential.
Tourism project: Professionally operated villa, guest rooms, residence, ecolodge or other accommodation: the reasoning becomes entrepreneurial and requires a specific study.

Tourism: Look at the trend, not just the impressive figures

Madagascar welcomed 330,909 non-resident visitors in 2025 according to provisional statistics from the Ministry of Tourism and Handicrafts.

This activity does not mean that visitor numbers are increasing steadily each year or month. On the contrary, the data available for the first half of 2026 shows a 7.9% decline in non-resident visitor arrivals compared to the same period in 2025.

For an investor, this is an important reminder: a project should not be built on the assumption that tourism will automatically increase every year.

A national tourism figure is not an occupancy rate. The number of visitors to Madagascar or passengers to Nosy Be does not allow for a direct calculation of the number of nights a villa can rent, its average price, or its profitability.

💶 Can we announce a return on investment for a villa in Nosy Be?

Not seriously, without having the actual accounts for the property or a detailed study.

A return depends on the total price invested, the number of weeks actually rented, the rates actually obtained, commissions, staff, maintenance, energy, repairs, taxes and periods of personal occupancy.

An advertisement promising a high return must therefore be compared with supporting documents: booking history, turnover, average rates actually collected and all expenses.

The costs to be included in a project

On-site management – ​​welcoming travelers, property inspections, assistance and coordination of the various stakeholders – has a cost.
Staff Depending on the standard of the property: security, cleaning, gardening, swimming pool, cooking or concierge services may be required.
Energy production: Solar power, batteries, grid and generator sets require maintenance and renewal.
Water supply, storage, pumping, filtration and maintenance must be integrated into the operation of the property.
Swimming pool and garden A prestigious tropical villa generally requires regular maintenance of outdoor spaces.
Marketing Portals, booking platforms, intermediaries and communication can represent a significant part of the turnover.
Building maintenance: Tropical climate, humidity, sea air and rental use can increase certain maintenance needs.
Taxation and compliance: The tax framework, permits and obligations related to the operation must be verified according to the exact project.

Foreign investor: secure the land before calculating the return

A profitability calculation only makes sense if the legal structure of the investment is itself correctly defined.

Malagasy Law No. 2023-002 on investments stipulates that foreign individuals or legal entities cannot directly acquire land. It specifically provides for the possibility of entering into a long-term lease (emphytéotique) with a maximum duration of 99 years, renewable.

For a real estate investment, it is therefore necessary to precisely identify the rights relating to the land, the buildings, the remaining term of any lease and the conditions applicable to its transfer or renewal.

→ Buying in Madagascar: Real Estate and Foreigners

How to study a real estate investment in Madagascar?

Define the objective : Heritage for pleasure, second home, additional income or professional tourism activity.
Choosing the location: Compare accessibility, tourism, environment, services, micro-location and quality of the local market.
Calculate the total acquisition cost. Property price, advice, legal fees, work, furniture, equipment and initial cash flow must be included.
The legal aspects of the land file , any lease, construction, transferred rights and the capacity of the seller or lessor must be verified.
Constructing several rental assumptions – a conservative scenario, an intermediate scenario, and a favorable scenario – allows us to measure the sensitivity of the project.
Deduct all expenses. Reason based on projected net income, not on the reported gross revenue.
Plan for management: Identify before purchase who will actually take care of the villa when the owner is away.
Planning an exit strategy: An investment must also be studied from the perspective of its future resale and the customers likely to take it over.

Cap Doré in Andilana: a pleasure residence or a rental asset?

The villa currently presented by Propriétés De Charme in Cap Doré, Andilana, perfectly illustrates the need to distinguish between heritage value and return.

With 474 m² of living space, five suites, a plot of 5,021 m², an infinity pool and panoramic ocean views, it combines several sought-after features for a high-end residence in Nosy Be.

These qualities may also be of interest to seasonal rental clients. However, they are not sufficient to determine profitability: this should be calculated based on documented operating assumptions.

→ Discover our section on villas for sale in Nosy Be and Andilana

Where to invest in Madagascar?

The choice depends heavily on the project. Nosy Be benefits from international tourist visibility and is naturally suited to the study of secondary residences and accommodation projects.

Antananarivo follows a different logic, being more urban and residential. Other seaside or tourist destinations, notably Sainte-Marie and certain coastal areas, could also be considered depending on the project.

Therefore, there is no location that would automatically be "the best" for investment: the consistency between location, real estate product, target clientele and operating method is crucial.

To place these areas in the national market: Real estate prices in Madagascar: market and luxury areas .

Resale: a factor to consider from the outset

The quality of an investment is not measured solely by the income it might generate during its ownership. Future resale must also be considered.

A very specific villa, difficult to access or with a complex legal situation, may attract a buyer today but reduce the number of candidates when it comes time to resell.

Conversely, a property with an identifiable location, clear documentation, good maintenance and an international presentation has better selling points.

🏡 Do you want to sell in Madagascar?

Villa in Nosy Be, property with sea view or property with character: a presentation intended for an international clientele must clearly highlight the location, the building, the services and the legal framework.

→ Publish a property as an individual

🏢 Agencies and professionals

Are you marketing high-end properties in Madagascar? Propriétés De Charme can enhance your visibility with a French and international clientele.

Are you not using software compatible with French real estate gateways? For specific promotion, send your existing ad, photographs and additional information: the Propriétés De Charme customer service will take care of preparing and highlighting the page.

→ Post professional ads
→ Discover the Featured Property service

Continue the Madagascar real estate file

Real estate prices in Madagascar: Market, luxury areas and price benchmarks. Luxury real estate in Nosy Be. Areas to search for a villa. Villas for sale in Nosy Be. Andilana, beachfront and prestigious properties. Buying in Madagascar: Land, long-term leases and foreign buyers. Selling. Enhancing the value of a luxury property in Madagascar. Publishing an advertisement. Developing the international visibility of a property.
Updated: September 2026. This article does not constitute a promise of return, nor personalized financial, tax, or legal advice. Each investment must be assessed based on the property, its legal status, its intended use, and the investor's individual circumstances.
Sources consulted: Ministry of Tourism and Handicrafts of Madagascar; Economic Development Board of Madagascar (EDBM); Madagascar tourism statistics 2025 and data available for 2026; Nosy Be Regional Tourism Office; Law No. 2023-002 on investments in Madagascar; Charming Properties.