James Charnaud

A quick visit to Madagascar where we are reviewing bids on some properties that we are selling in the capital, Antananarivo. I think I have timed this one just about right as next Wednesday there is a Referendum on constitutional reform and protests are starting. I leave on Tuesday.

I have never understood Madagascan politics, but I can see the effects of the disruption over the last couple of years on real estate. The rental market has remained stagnant. Most commercial building buildings which are available for lease are owned by a small number of private individuals. They can afford to leave their properties vacant whilst waiting for tenants who will pay the rents they are demanding (Euro 8-10 /sq m /month).

Recently investors have returned to the market to purchase better quality buildings, but there is little appetite for anything that would require significant capital investment.

                                                             Demonstrators in Antananarivo