Buying a Home in Madagascar

Madagascar, known for its rich biodiversity and stunning landscapes, is an increasingly popular destination for expats. Whether you're moving for work, retirement, or simply a change of scenery, buying a home in Madagascar can be a rewarding investment. However, navigating the real estate market in a foreign country can be challenging. This guide aims to provide you with the necessary information to make your home buying process in Madagascar as smooth as possible.

How do I find houses for sale in Madagascar?

There are several ways to find houses for sale in Madagascar. Online property portals and real estate agencies are the most common methods. Websites like Property Madagascar and Realigro offer a wide range of listings. Local newspapers and word-of-mouth referrals can also be useful. It's advisable to engage a local real estate agent who understands the market and can guide you through the process.

Are there restrictions on foreigners owning property in Madagascar?

Yes, there are restrictions on foreigners owning property in Madagascar. According to the Malagasy law, foreigners cannot own land, but they can lease it for a period of up to 99 years. However, if a foreigner establishes a company in Madagascar, the company can own land. It's crucial to consult with a local attorney to understand the legalities and find the best way to proceed.

Does Madagascar have an MLS type system?

Madagascar does not have a Multiple Listing Service (MLS) system like in the United States. Property listings are typically managed by individual real estate agencies. Therefore, it's important to work with a reputable and experienced real estate agent who has access to a wide range of properties.

Do brokers have licenses and how do I know if they are licensed?

Real estate brokers in Madagascar are required to have a license. You can verify their license by asking to see it or checking with the Chamber of Commerce and Industry of Madagascar. It's crucial to ensure you're dealing with a licensed professional to avoid potential scams or legal issues.

What documents are required when buying a home?

When buying a home in Madagascar, you'll need several documents. These include a valid passport, a sales agreement, a certificate of non-encumbrance (proving the property is free of any debts), and a lease agreement if you're a foreigner. The property must also have a land title, which is the official document proving ownership.

Do I need a lawyer when buying a home in Madagascar?

Yes, it's highly recommended to hire a lawyer when buying a home in Madagascar. A lawyer will help you navigate the legal process, verify all documents, and ensure the transaction is conducted legally. The cost of a lawyer can vary, but it's generally around 1-2% of the property's purchase price.

Do people typically buy a property with all cash or take out a mortgage?

Most property transactions in Madagascar are conducted in cash. Mortgages are not common, especially for foreigners, due to the country's underdeveloped banking system. If you need financing, it's advisable to arrange it in your home country before making the purchase.

Are there inspections that take place, and if so what is that process like?

Property inspections are not standard practice in Madagascar, but it's advisable to have one done. You can hire a local surveyor or engineer to inspect the property and ensure there are no hidden issues. This can help you avoid costly repairs in the future.

What are some of the pitfalls to avoid when buying property in Madagascar?

When buying property in Madagascar, it's important to be aware of potential pitfalls. These include not thoroughly checking the property's legal status, not verifying the broker's license, and not conducting a property inspection. It's also crucial to understand the restrictions on foreign ownership and ensure all transactions are conducted legally. Always seek professional advice to avoid these pitfalls.