Commercial Real Estate - Madagascar

in Madagascar, a country known for its rich history and diverse landscapes, is also a part of the thriving Commercial Real Estate market market.
The projected value of this market segment in Madagascar is set to reach US$22.08bn by the year 2024.
Looking ahead, it is anticipated that there will be a steady annual growth rate of 8.79% from 2024 to 2029.
This growth trajectory is expected to result in a market volume of US$33.65bn by the year 2029.
While in Madagascar contributes significantly to the Commercial Real Estate market market, it is important to note that in global comparison, the United States takes the lead in generating the highest value in this sector.
In 2024, the United States is projected to reach an impressive US$25.3tn in terms of Real Estate value.
Madagascar's commercial real estate market is experiencing a surge in demand due to increased foreign investment and the growing tourism industry.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Madagascar is experiencing significant developments and trends. Customer preferences in the Commercial Real Estate market in Madagascar are driven by several factors. One of the key preferences is the demand for modern and well-equipped office spaces. As businesses in Madagascar continue to expand and international companies establish a presence in the country, there is a growing need for high-quality office spaces that can accommodate their operations. Additionally, customers are seeking commercial properties that offer convenient locations with easy access to transportation and amenities. The market is also witnessing a trend towards mixed-use developments. Developers are increasingly incorporating residential, retail, and entertainment components into their commercial projects. This trend is driven by the desire to create vibrant and integrated communities where people can live, work, and socialize in one location. Mixed-use developments not only cater to the needs of businesses but also enhance the overall quality of life for residents. Another trend in the Commercial Real Estate market in Madagascar is the rise of sustainable and green buildings. Customers are increasingly conscious of environmental issues and are demanding buildings that are energy-efficient, use renewable materials, and incorporate sustainable design principles. Developers are responding to this trend by incorporating green building practices into their projects, which not only benefits the environment but also attracts environmentally-conscious tenants. Local special circumstances in Madagascar also contribute to the development of the Commercial Real Estate market. The country's growing economy and political stability have attracted foreign investment, leading to increased demand for commercial properties. Additionally, the government has implemented policies to promote economic growth and attract foreign investors, which has further stimulated the market. Underlying macroeconomic factors also play a role in the development of the Commercial Real Estate market in Madagascar. The country's GDP growth and increasing urbanization rates are driving the demand for commercial properties. As more people move to urban areas for job opportunities, the need for office spaces, retail outlets, and other commercial properties continues to grow. Furthermore, favorable interest rates and financing options are making it easier for businesses to invest in commercial real estate. In conclusion, the Commercial Real Estate market in Madagascar is experiencing significant developments and trends driven by customer preferences, local special circumstances, and underlying macroeconomic factors. The demand for modern office spaces, mixed-use developments, and sustainable buildings is shaping the market. Moreover, the country's growing economy, political stability, and favorable macroeconomic conditions are attracting investment and stimulating the market further.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.