Real Estate - Madagascar | Statista Market Forecast

The Real Estate market market in Madagascar is projected to reach a value of US$261.60bn in 2024.
The Residential Real Estate segment dominates this market with a projected market volume of US$239.50bn in the same year.
It is expected to experience an annual growth rate (CAGR 2024-2029) of 5.25%, resulting in a market volume of US$337.90bn by 2029.
In global comparison, United States is expected to generate the highest value in the Real Estate market sector, with a projected value of US$132.0tn in 2024.
Due to the increasing demand for eco-friendly properties, Madagascar's real estate market is witnessing a surge in sustainable housing developments.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Madagascar has been experiencing significant growth and development in recent years. Customer preferences in the Real Estate market in Madagascar are largely driven by the desire for affordable housing options. Many individuals and families in Madagascar are seeking affordable and accessible housing solutions that meet their needs. In addition, there is a growing demand for modern amenities and infrastructure in residential properties, such as access to electricity, water, and internet connectivity. Trends in the Real Estate market in Madagascar include the construction of new residential and commercial properties in urban areas. This is driven by the increasing urbanization in the country, as more people move to cities in search of employment and better living conditions. The construction of new properties is also fueled by foreign investment in the country, as international companies recognize the potential for growth in the Real Estate sector in Madagascar. Local special circumstances in the Real Estate market in Madagascar include the availability of land for development. Madagascar has a large amount of undeveloped land, which presents opportunities for new construction projects. However, there are also challenges associated with land ownership and titling, which can complicate the development process. Underlying macroeconomic factors that contribute to the development of the Real Estate market in Madagascar include economic growth and stability. As the economy continues to grow, more individuals and businesses have the financial means to invest in Real Estate. In addition, government policies and incentives that promote Real Estate development also play a role in driving growth in the market. Overall, the Real Estate market in Madagascar is experiencing growth and development due to customer preferences for affordable housing, the construction of new properties in urban areas, the availability of land for development, and underlying macroeconomic factors such as economic growth and government policies. With continued investment and development, the Real Estate market in Madagascar is likely to continue to expand in the coming years.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. 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 particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

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.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Madagascar

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Volume

Analyst Opinion

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Methodology

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