Knowing the real value of your property
Open-market valuation: having your property valued by an accredited expert
Land, houses, buildings, commercial premises, industrial buildings or hotel complexes: the Firm determines their market value using recognised, cross-checked and reasoned methods.
Definition
Open-market value in brief
Open-market value is the price at which a property could reasonably be sold on the market, at the valuation date, between a willing and informed seller and buyer, after a normal marketing period.
It is neither an asking price nor a mere estimate: it is a reasoned value, established by an independent expert who sets out the method, the references and the calculations.
To find out more: Understanding the open-market valuation of a property in Madagascar
Situations
When should a property be valued?
A valuation by an accredited expert is generally required for transactions, inheritances, partitions and bank financing.
- 01
Sale or purchase
Sale or acquisition of a residential, commercial, industrial or land asset.
- 02
Inheritance & partition
Determining the value of real-estate assets as part of an inheritance or a family partition.
- 03
Gift
Valuation for the basis of registration duties on a gift.
- 04
Divorce
Valuation of real-estate assets when a matrimonial property regime is liquidated.
- 05
Business
Valuation of real-estate assets on a company’s balance sheet, merger-acquisition or asset disposal.
- 06
Bank lending
Credit institutions require an open-market valuation report signed by an accredited expert for any property-loan file.
- 07
Dispute
Challenge to an administrative valuation.
- 08
Investment
Due diligence before an acquisition.
The site visit
What the expert examines
Tap the gold markers: each one corresponds to a factor that influences open-market value.
Location
District, accessibility, immediate surroundings, proximity to services.
Methodology
Three methods, cross-checked for a reasoned value
Depending on the nature of the property, the expert combines the recognised approaches suited to the Malagasy market. The three methods are detailed in the Firm’s guide.
By comparison
The reference method: the expert compares the property with recent sales of comparable properties, then adjusts the price per square metre for location, condition and specification.
Worked example
Drag the sliders: the result updates.
180 m² × 2,000,000 Ar/m² × (1 − 5%)
By income capitalisation
For properties that are let or intended to be let — investment buildings, shops, offices — the value derives from the income the property generates, related to a yield rate observed on the market. See also the Rental value page.
Worked example
Drag the sliders: the result updates.
30,000,000 Ar ÷ 8.5% = 352,941,176 Ar, rounded to 352,900,000 Ar
By net replacement cost
Useful for properties that rarely sell or are atypical — industrial buildings, facilities, recent constructions: value of the land plus the cost of rebuilding new, less depreciation.
Worked example
Drag the sliders: the result updates.
120,000,000 Ar + 180 m² × 1,800,000 Ar/m² × (1 − 25%)
Fictitious figures, for educational purposes: they do not reflect prices on the Malagasy market and do not constitute a valuation.
Properties valued
From bare land to hotel complexes
Land
Built and unbuilt land.
Houses & villas
Residential properties.
Residential buildings
Apartment buildings and investment buildings.
Shops & offices
Commercial premises, offices, industrial buildings and hotel complexes.
Rural properties
Agricultural estates.
The deliverable
What your report contains
Each report is signed, stamped and carries the evidential weight granted to the expert registered with the CAREA (Compagnie des Arbitres Rapporteurs et Experts Agréés près les Cours et Tribunaux de Madagascar).
Site visit and document collection
Detailed inspection of the property, technical measurements, examination of the land title and supporting documents.
Analysis
Application of the valuation methods, comparative analysis.
Drafting
Drafting of the reasoned report.
Delivery of the report
Signed and stamped report, carrying the evidential weight granted to reports by experts registered with the CAREA. Average turnaround of 5 to 15 business days for a standard property in Antananarivo.
Frequently asked questions
Your questions about valuation
The open-market value of a property in Antananarivo varies according to its location (Analamahitsy, Ambohijatovo, Ivandry...), floor area, general condition, type of property title and comparable transactions on the market. A valuation by an accredited expert is generally required for transactions, inheritances, partitions and bank financing.
The time required depends on the complexity of the property and its location. For a standard property in Antananarivo, allow generally between 5 and 15 business days from receipt of the signed letter of engagement and the necessary documents (land title, plans, schedule of condition...). For judicial appraisals, the time limit is set by the court’s order.
See also
Contact
Get in touch
Confidential discussion of your file. A personalised fee proposal is sent to you after review of your request.
Or write to contact@expertimmo.mg