Housing Finance in Madagascar


Madagascar has a (developed/growing/limited) housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The lowest recorded interest rate on a mortgage in Madagascar is 19 percent, as of September 2016, and requires at least a 25 percent down payment. The cheapest newly built house by a developer recorded by CAHF is US$ 140 000, which is for a 120 square metre unit. Cement prices are lower than the continental average, at US$ 7.35 for a 50-kilogram bag.

With an urbanisation rate of 4.61 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. The Central Bank of Madagascar has kept a consistent monetary policy, maintaining stability in the financial sector. Yet, a household survey from 2010 stated that 86.5 percent of households live in self-built housing, while 88.2 percent of the urban population lives in slums. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Madagascar can afford.

Find out more information on the housing finance sector of Madagascar, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

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