Investment Property in Antananarivo

Investment Real Estate in Antananarivo

Antananarivo property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Antananarivo .

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Search Map of Antananarivo Investment Real Estate

Antananarivo (French: Tananarive, pronounced [tananaʁiv]), also known by its colonial shorthand form Tana, is the capital and largest city of Madagascar. The administrative area of the city, known as Antananarivo-Renivohitra (“Antananarivo-Mother Hill” or “Antananarivo-Capital”), is the capital of Analamanga region. The city sits at 1,280 m (4,199 ft) above sea level in the center of the island, the highest national capital by elevation among the island countries. It has been the country’s largest population center since at least the 18th century. The presidency, National Assembly, Senate and Supreme Court are located there, as are 21 diplomatic missions and the headquarters of many national and international businesses and NGOs. It has more universities, nightclubs, art venues, and medical services than any city on the island. Several national and local sports teams, including the championship-winning national rugby team, the Makis are based here.

Antananarivo was historically the capital of the Merina people, who continue to form the majority of the city’s 1,275,207 (2018 Census) inhabitants. The surrounding urban areas have a total metropolitan population approaching three million. All eighteen Malagasy ethnic groups, as well as residents of Chinese, Indian, European and other origins, are represented in the city. It was founded circa 1610, when the Merina King Andrianjaka (1612–1630) expelled the Vazimba inhabitants of the village of Analamanga. Declaring it the site of his capital, Andrianjaka built a rova (fortified royal dwelling) that expanded to become the royal palaces of the Kingdom of Imerina. The city retained the name Analamanga until the reign of King Andriamasinavalona (1675–1710), who renamed it Antananarivo (“City of the Thousand”) in honor of Andrianjaka’s soldiers.

The city served as the capital of the Kingdom of Imerina until 1710, when Imerina split into four warring quadrants. Antananarivo became the capital of the southern quadrant until 1794, when King Andrianampoinimerina of Ambohimanga captured the province and restored it as capital of a united Kingdom of Imerina, also bringing neighboring ethnic groups under Merina control. These conquests continued under his son, Radama I, who eventually controlled over two-thirds of the island, leading him to be considered the King of Madagascar by European diplomats. Antananarivo remained the island’s capital after Madagascar was colonized by the French in 1897, and after independence in 1960.

The city is now managed by the Commune Urbaine d’Antananarivo (CUA) under the direction of its President of the Special Delegation, Ny Havana Andriamanjato, appointed in March 2014. Limited funds and mismanagement have hampered consecutive CUA efforts to manage overcrowding and traffic, waste management, pollution, security, public water and electricity, and other challenges linked to explosive population growth. Major historic landmarks and attractions in the city include the reconstructed royal palaces and the Andafiavaratra Palace, the tomb of Rainiharo, Tsimbazaza Zoo, Mahamasina Stadium, Lake Anosy, four 19th-century martyr churches, and the Museum of Art and Archaeology.

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The financial stability of Antananarivo has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Antananarivo

Renting out your Antananarivo buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Antananarivo are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Antananarivo and be prepared to change your initial outlook.
Thoroughly research the Antananarivo location with a special emphasis on fringe areas outside the main Antananarivo metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Antananarivo.
Ensure that your target investment property in Antananarivo appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Antananarivo properties yourself is an easy option, but are these savings justifiable when you run into Antananarivo red tape? Physis Realty Antananarivo office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Antananarivo buy-to-rent sector.

With our expert guidance, investing in Antananarivo provides the secure knowledge that your money is working harder than it would in a local Antananarivo bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Antananarivo, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Antananarivo property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Antananarivo

Flipping property in Antananarivo

Flipping property is when we advise clients to buy a Antananarivo property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Antananarivo market has a time to react to the renovation.

The Flipping Strategy in Antananarivo

Investment property flipping in Antananarivo is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Antananarivo real estate investments are sometimes referred to by professionals as ‘distressed’ Antananarivo real estate.

What is distressed Antananarivo property:

Antananarivo property in need of renovation
Antananarivo real estate with a change of purpose and use
Oversold Antananarivo property
Bank repossessions in Antananarivo

Put simply, long term investors in Antananarivo purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Antananarivo investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Antananarivo property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Antananarivo use a minimum profit value of 22% when looking at potential Antananarivo projects. The reason for this is because there are lots that can go wrong in Antananarivo property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Antananarivo

For luxury property investors hoping to add a superb property in Antananarivo to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Antananarivo, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Antananarivo should be entrusted to only the highest-quality agency.

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