Table of Contents
- Executive Summary: Key Findings for 2025–2030
- Current Market Overview: Trends and Statistics
- Major Cities & Commercial Property Types in Comoros
- Investment Hotspots: Where Opportunities Are Emerging
- Legal & Regulatory Framework (Sources: economie.gouv.km, domaineministere.gouv.km)
- Taxation and Compliance for Foreign and Local Investors (Sources: douanes.gouv.km, finances.gouv.km)
- Key Drivers: Infrastructure, Tourism & Economic Policies
- Risks, Challenges, and Barriers to Entry
- Notable Transactions & Case Studies (Sources: chambrecommerce-comores.com)
- Future Outlook: Projections and Strategic Recommendations for 2025–2030
- Sources & References
Executive Summary: Key Findings for 2025–2030
The commercial real estate sector in Comoros is characterized by gradual development, driven primarily by government initiatives focused on economic diversification and infrastructure improvement. As of 2025, the sector remains relatively nascent, with most activity concentrated in the capital Moroni and select urban centers. The government has recently underscored its commitment to attracting foreign investment and enhancing the regulatory framework to promote sustainable real estate growth.
- Legal and Regulatory Developments: The legal framework governing commercial real estate is anchored by the Comorian Civil Code and specific statutes relating to property registration and land tenure. The government has taken steps to streamline the property registration process, aiming to reduce delays and increase transparency. Foreign ownership is permitted with government approval, though land remains technically vested in the state, requiring leasehold arrangements for commercial ventures. Ongoing reforms under the Gouvernement de l’Union des Comores’s economic modernization agenda are expected to further clarify and enhance compliance requirements through 2030.
- Key Statistics: Commercial real estate transactions remain limited in volume, with office and retail spaces accounting for the majority of developments. According to recent data from the Institut National de la Statistique et des Études Économiques et Démographiques (INSEED), the share of construction in GDP stands at approximately 5%, while the formal real estate sector remains underdeveloped relative to regional peers. Urban population growth—projected at over 2% per year—suggests increasing demand for commercial properties, particularly in retail and hospitality.
- Compliance and Risk: Investors face compliance obligations relating to anti-money laundering, zoning, and environmental impact. The Assemblée de l’Union des Comores periodically updates relevant legislation to align with international standards, with particular emphasis on transparency and anti-corruption. Compliance risks persist due to administrative bottlenecks and evolving local regulations, but ongoing digitalization efforts are expected to enhance regulatory efficiency by 2030.
- Outlook 2025–2030: The outlook for Comoros’s commercial real estate sector is cautiously optimistic. Infrastructure projects—including port upgrades and urban renewal programs—are anticipated to stimulate commercial property demand. The government’s focus on tourism and financial services as engines of growth is likely to spur additional investments in related real estate assets. Nevertheless, structural challenges such as limited access to financing, land tenure complexities, and bureaucratic inertia may temper rapid expansion. Policy continuity and sustained regulatory improvements will be critical to unlocking the sector’s potential in the next five years.
Current Market Overview: Trends and Statistics
The commercial real estate sector in Comoros remains nascent but demonstrates gradual evolution as the country seeks to diversify its economy and attract more investment. Historically, the sector has been constrained by limited foreign participation, small-scale domestic investment, and infrastructural challenges. However, recent years have seen renewed government focus on improving the investment climate and urban infrastructure, particularly in Moroni, the capital, and key port cities.
According to the Comoros Investment Promotion Agency (ANPI), commercial property transactions in 2024 registered a modest increase, with retail and hospitality segments leading growth. The government’s 2030 Vision and associated programs have prioritized modernization of logistical hubs, hotels, and retail centers, with new projects emerging around Moroni’s port and the international airport. This is expected to spur further demand for commercial spaces through 2025 and beyond.
Official statistics on commercial property transactions remain limited, but the Ministry of Finance reported that investment in non-residential construction grew by approximately 2.5% in 2023, with a similar trend forecast for 2025. Key drivers include government-backed infrastructure upgrades, increased activity in tourism, and the gradual formalization of trade sectors (Ministry of Finance, Budget and Banking Sector).
Foreign ownership of land remains heavily restricted under Comorian law, with the Ministry of Justice affirming that only citizens and certain locally registered entities may acquire property. Leaseholds are available to foreigners for commercial purposes, usually not exceeding 99 years. All commercial property transfers must be officially registered, and compliance with urban planning and zoning regulations is enforced by the Moroni City Council and regional authorities.
Compliance requirements for commercial real estate transactions have tightened, with notarial registration, tax clearance, and anti-money laundering due diligence now strictly required. The General Directorate of Taxes oversees transfer taxes and periodic property assessments.
Looking ahead to 2025 and the following years, the outlook for commercial real estate in Comoros is cautiously optimistic. While the sector remains constrained by scale and regulatory hurdles, ongoing infrastructure projects and policy reforms are expected to stimulate gradual growth. The government’s ongoing engagement with regional bodies and international donors signals further improvement in the investment climate, which could enhance both the volume and sophistication of commercial real estate offerings in the coming years.
Major Cities & Commercial Property Types in Comoros
The commercial real estate landscape in Comoros is primarily shaped by the archipelago’s three main islands: Grande Comore (Ngazidja), Anjouan (Ndzuwani), and Mohéli (Mwali). The capital city, Moroni, located on Grande Comore, serves as the economic and administrative hub, hosting the majority of the nation’s commercial real estate activities. Key commercial property types across major cities include office spaces, retail premises, hospitality properties, and limited industrial facilities.
- Moroni (Grande Comore): As the seat of government and the principal port, Moroni concentrates the country’s banking, telecommunications, and trade sectors. Commercial real estate here revolves around office buildings for governmental agencies and financial institutions, retail outlets, hotels, and logistics facilities connected to the port. The presence of international organizations and embassies also drives demand for office and hospitality real estate.
- Mutsamudu (Anjouan): Mutsamudu is the second-largest city and the island’s chief port. Its commercial property market is primarily oriented around port-related logistics, local wholesale trading, and small retail centers. Industrial and warehousing spaces are limited but gradually developing due to growing inter-island trade.
- Fomboni (Mohéli): The smallest of the island capitals, Fomboni’s commercial properties are modest in scale, mostly comprising hospitality establishments, markets, and administrative offices. The city’s property market is expected to expand incrementally, driven by government incentives for tourism and small-scale commerce.
Legally, all land in Comoros belongs to the State; private rights arise through long-term leases or “concessions” as established under the Land Code (Ministère des Finances, du Budget et du Secteur Bancaire). Foreign ownership is restricted, with non-citizens able to access commercial real estate only under specific lease arrangements and subject to approval by relevant ministries. Compliance with zoning and construction regulations falls under the oversight of municipal authorities and the Ministry of Lands and Urbanism (Ministère de l’Aménagement du Territoire et de l’Urbanisme).
While comprehensive up-to-date statistics are limited, recent government data indicates a gradual increase in commercial property developments, particularly in Moroni, propelled by public infrastructure projects and tourism sector investments (Gouvernement de l'Union des Comores). However, the sector remains constrained by a lack of formal valuation standards, limited access to credit, and ongoing regulatory reforms. Over the next few years, growth in hospitality and retail is expected to continue, especially as the government targets increased international investment and trade facilitation, with a cautious outlook due to macroeconomic and political uncertainties.
Investment Hotspots: Where Opportunities Are Emerging
The commercial real estate sector in Comoros is gradually gaining attention as an emerging investment hotspot in the Indian Ocean region. In 2025 and the coming years, several factors converge to create new opportunities, especially in urban centers such as Moroni (the capital), Mutsamudu, and Fomboni. The government’s renewed focus on economic diversification and infrastructure upgrades—particularly port, transport, and energy initiatives—are supporting growth in commercial property demand.
Key legal frameworks governing commercial real estate include the Code Foncier et Domanial (Land and Property Code) and investment provisions detailed in the Investment Code. Foreign investors may acquire long-term leases, generally up to 99 years, but outright land ownership remains restricted to Comorian nationals or legal entities majority-owned by them. Compliance with land registration, environmental, and urban planning regulations is overseen by the Agence Nationale d’Urbanisme et d’Aménagement du Territoire (ANUAT), ensuring transparency and legal certainty for institutional and private investors.
Recent government initiatives, such as the 2030 national development strategy, have prioritized the improvement of business zones, logistics parks, and hospitality infrastructure, with special economic zones (SEZs) under discussion to attract regional trade and investment. According to the Comoros Investment Promotion Agency, commercial real estate transactions saw a modest but notable increase in 2024, with demand centered on retail, warehousing, and office developments in Moroni and near the ports of Mutsamudu and Moroni. These port areas are expected to remain hotspots, as Comoros strengthens its role as a transit hub between East Africa, Madagascar, and the Middle East.
Statistical data remains limited, but official sources indicate a gradual rise in foreign direct investment (FDI) in real estate and construction sectors, with FDI inflows to Comoros reaching approximately USD 30 million in 2023, a portion of which was directed to commercial property (Banque Centrale des Comores). The government’s ongoing digitization of land registries and modernization of property laws are poised to further improve ease of transaction and protect investor rights.
Looking ahead to 2025 and beyond, the outlook for commercial real estate in Comoros remains cautiously optimistic. While challenges such as limited market size and regulatory complexity persist, the combination of infrastructure investments, legal reforms, and regional trade integration are likely to fuel continued interest in prime urban and port-adjacent commercial properties.
Legal & Regulatory Framework (Sources: economie.gouv.km, domaineministere.gouv.km)
The legal and regulatory framework governing commercial real estate in Comoros is primarily shaped by a combination of national legislation, ministerial directives, and administrative procedures overseen by key government bodies. As of 2025, the sector continues to evolve in response to economic reforms and efforts to attract both domestic and foreign investment.
Commercial real estate transactions and ownership are regulated under the Code Foncier (Land Code), which outlines land tenure, property rights, and registration procedures. The Ministry of Economy, Industry, Investment, and Economic Integration (Ministère de l’Economie) plays a central role in overseeing investment policy, including real estate-related incentives and compliance requirements for businesses operating in the sector.
Foreign investors may acquire commercial property subject to specific conditions, including obtaining prior approval from the relevant authorities and adhering to local partnership requirements. The Ministère des Domaines, de l’Urbanisme, des Habitats, des Affaires Foncières et des Services Fonciers administers land registration, title issuance, and the management of public and private lands. Recent administrative reforms have focused on streamlining registration processes and improving transparency in land transactions, with the introduction of digital records and updated cadastral mapping.
Compliance remains a key concern, with all commercial real estate developments subject to urban planning regulations, zoning laws, and environmental assessments. Permits for construction, renovation, and use changes must be secured in advance, and ongoing compliance is monitored by both the Ministry of Economy and the Ministry of Land Affairs. Non-compliance can result in administrative penalties, project suspension, or revocation of rights.
In terms of dispute resolution, the legal system provides recourse through administrative and judicial channels, with specialized tribunals available for land and property disputes. The government has signaled a commitment to strengthening the enforcement of property rights and expediting case resolution to foster a more secure investment climate.
Looking ahead, ongoing policy initiatives are expected to further modernize the regulatory environment for commercial real estate. This includes continued digitization of land records, enhanced investor protections, and greater harmonization with regional standards. These measures are anticipated to improve market transparency, reduce transaction costs, and support sustainable growth in the commercial real estate sector over the next few years (Ministère de l’Economie; Ministère des Domaines).
Taxation and Compliance for Foreign and Local Investors (Sources: douanes.gouv.km, finances.gouv.km)
The taxation and compliance landscape for both foreign and local investors in Comoros’ commercial real estate sector is shaped by regulations set forth by the national customs authority and the Ministry of Finance. As of 2025, these frameworks are designed to encourage investment while ensuring fiscal accountability and alignment with national economic goals.
Key Taxation Principles
Commercial real estate transactions in Comoros are subject to several taxes. The principal taxes relevant to property acquisition and ownership include registration duties, value-added tax (VAT), and, in some cases, capital gains tax. Registration duties are typically imposed upon the transfer of commercial property titles, with rates determined by the nature and value of the transaction. Non-resident investors are required to comply with the same property transfer and registration tax regulations as local entities, maintaining parity in the tax burden. VAT is generally applicable to new commercial property sales and certain rental activities. There are also annual property taxes assessed based on property valuation, which both local and foreign owners must pay.
Foreign Investment Regulations
Foreign investors are permitted to acquire commercial real estate in Comoros, but they must adhere to specific compliance requirements, including the registration of property transactions and compliance with anti-money laundering protocols. Foreign entities are often required to obtain investment approval or register their activities with relevant ministries, such as the Ministry of Finance. Investors may also face restrictions in sectors deemed strategically sensitive. It is mandatory for all investors to keep accurate financial records and submit annual tax declarations to the competent authorities.
Compliance Procedures
The process of acquiring and registering commercial real estate involves multiple steps, including due diligence, notarial authentication, and registration with the land registry. Investors must declare the transaction value and pay corresponding duties through the customs and tax administration. Compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations is strictly enforced, requiring proof of funds and clear identification of beneficial ownership. The Direction Générale des Douanes and the Ministère des Finances, du Budget et du Secteur Bancaire provide detailed procedures and guidance for fulfilling these requirements.
Recent Developments and Outlook
In recent years, Comoros has undertaken reforms to improve tax administration and streamline compliance for investors, including digitalization of property registration and tax payment processes. Moving into 2025 and beyond, further modernization efforts are anticipated to enhance transparency, reduce processing times, and bolster investor confidence. Continued alignment with international best practices in AML/CTF compliance is also expected, supporting the integrity of the commercial real estate market and facilitating cross-border investment.
Key Drivers: Infrastructure, Tourism & Economic Policies
Commercial real estate in Comoros is evolving, with its trajectory shaped by infrastructure development, tourism expansion, and recent economic policy reforms. The Union of the Comoros, an archipelago in the Indian Ocean, has historically exhibited a modest commercial property market, constrained by limited infrastructural capacity and economic volatility. However, a combination of strategic investments and policy shifts is beginning to alter the landscape.
Infrastructure is a principal driver. The government has prioritized the improvement of transport and utility networks, critical for business and real estate development. The Government of Comoros has reported ongoing upgrades to key ports, including the Port of Moroni, and the expansion of road networks connecting commercial hubs. The electrification rate, while still below global averages, is climbing due to renewable energy projects, which are expected to support industrial and commercial area growth into 2025 and beyond.
Tourism, a vital sector for Comoros, is a catalyst for commercial real estate, particularly in hospitality, retail, and mixed-use developments. The Ministry of Tourism has implemented targeted campaigns and relaxed visa requirements for select countries, aiming to attract more international visitors. According to the Ministry of Tourism and Handicrafts, hotel and resort occupancy rates are recovering post-pandemic, prompting new investment interest in commercial property, particularly on Grande Comore and Anjouan islands.
Economic policy reforms are further influencing the sector. The government’s Vision 2030 plan, outlined by the Ministry of Economy, Industry, Investments, and Economic Integration, seeks to diversify the economy and streamline investment procedures, including in real estate. The 2024 Investment Code revision introduced enhanced protections for foreign investors, simplified property registration processes, and clarified land tenure, reducing legal uncertainties that historically hindered commercial real estate transactions.
Compliance and regulatory oversight remain important. The Comorian Financial Control Commission (Commission de Contrôle Financier) continues to monitor real estate transactions for anti-money laundering compliance, a requirement under updated national AML/CFT frameworks. For foreign investors, land acquisition is generally permitted, subject to certain restrictions and approval processes as stipulated in the revised Land Law and investment regulations.
Looking ahead, the outlook for commercial real estate in Comoros to 2025 and into the late 2020s is cautiously optimistic. The confluence of infrastructure improvements, growing tourism, and pro-investment policies is expected to unlock new opportunities, particularly in hospitality, retail, and logistics sub-sectors. However, progress will depend on sustained political stability, effective regulatory implementation, and continued international cooperation to finance critical infrastructure projects.
Risks, Challenges, and Barriers to Entry
The commercial real estate sector in Comoros faces a range of risks, challenges, and barriers to entry that are expected to persist into 2025 and beyond. These factors stem from structural, legal, and market-specific conditions unique to the islands.
- Legal and Regulatory Complexity: The land tenure system in Comoros is characterized by a blend of customary and statutory law, often leading to disputes over property rights and land titles. Investors may encounter difficulties in verifying property ownership and ensuring secure land tenure, especially since the formal land registry is not always comprehensive or up to date. The government has acknowledged these challenges and is working towards reforms, but progress remains gradual (Government of the Union of the Comoros).
- Foreign Ownership Restrictions: Foreign investors are subject to restrictions when purchasing land and real estate. While foreign investment is generally encouraged, the process for obtaining necessary permits and approvals is often opaque and can be slow, adding uncertainty and delay to commercial real estate transactions (Agence Nationale pour la Promotion des Investissements).
- Compliance and Due Diligence: Compliance with local building codes, environmental regulations, and anti-corruption laws can be challenging due to limited administrative capacity and inconsistent enforcement. Investors must navigate evolving regulatory requirements and ensure thorough due diligence to avoid legal pitfalls, especially regarding environmental impact assessments and urban planning approval (Ministère de l’Environnement et des Forêts).
- Infrastructure Constraints: Comoros continues to face significant infrastructure gaps, including unreliable electricity, limited water supply, and inadequate transport links. These issues increase development costs and can affect the viability of commercial real estate projects, particularly outside urban centers (Société Nationale d’Électricité des Comores).
- Market Size and Economic Volatility: The small scale of the Comorian economy and limited purchasing power constrain demand for commercial real estate. The country is also vulnerable to external shocks, such as currency fluctuations and shifts in international aid, which can impact investor confidence and real estate values (Banque Centrale des Comores).
Given these challenges, investors must exercise caution and conduct comprehensive risk assessments when considering entry into the Comorian commercial real estate market. While legal reforms and infrastructure improvements are on the government’s agenda for the coming years, tangible progress will likely be gradual, and the environment in 2025 will remain complex for new entrants.
Notable Transactions & Case Studies (Sources: chambrecommerce-comores.com)
The commercial real estate sector in Comoros is characterized by gradual growth, reflecting the archipelago’s broader economic developments and foreign investment trends. In recent years, the market has seen a handful of notable transactions, primarily in the hospitality, retail, and logistics segments, driven by both local entrepreneurs and external investors, including those from the Comorian diaspora.
One significant transaction occurred in early 2024, when an international hotel group partnered with local investors to acquire and redevelop a waterfront property in Moroni, the nation’s capital. This deal, valued at approximately 2.5 million euros, marked one of the largest hospitality investments in the country to date. The redevelopment project, expected to open in late 2025, aims to meet the growing demand for quality accommodations and conference facilities, a need highlighted by Comoros’ increasing profile in regional trade and tourism.
Retail-focused investments have also shaped the market. In mid-2023, a consortium of Comorian business owners completed the acquisition and expansion of a commercial center in Mutsamudu, Anjouan’s major urban hub. The upgraded facility introduced modern retail spaces and office units, fostering local entrepreneurship and attracting regional chain stores. The Chambre de Commerce, d’Industrie et d’Agriculture des Comores (CCIA) has recognized this transaction as a catalyst for job creation and an important step toward formalizing the island’s retail sector.
From a legal and compliance perspective, all commercial real estate transactions in Comoros are subject to registration and oversight by the Ministry of Finance and Budget, with documentation requirements including land title verification, notarial deeds, and compliance with urban planning regulations. The CCIA plays a facilitative role, providing due diligence support and certifying business-related property transfers. Recent government initiatives to simplify business and property registration have begun to reduce transaction times and enhance transparency, as reported in annual reviews by the CCIA.
Looking ahead, the outlook for commercial real estate in Comoros remains cautiously optimistic. The government’s ongoing reforms aimed at improving the investment climate, coupled with returning diaspora capital and renewed interest from Indian Ocean regional investors, are expected to drive further notable transactions in the next few years. However, challenges persist, particularly in infrastructure, access to commercial finance, and land tenure security, all of which are being addressed through policy dialogues and capacity-building efforts by the CCIA and other relevant authorities (Chambre de Commerce, d’Industrie et d’Agriculture des Comores).
Future Outlook: Projections and Strategic Recommendations for 2025–2030
The future outlook for commercial real estate in Comoros from 2025 to 2030 is shaped by a combination of economic development initiatives, evolving legal frameworks, and regional integration efforts. As Comoros continues to prioritize its Vision 2030 plan, which promotes investment and economic diversification, the commercial real estate sector is expected to gradually expand, particularly in the capital Moroni and port cities. The government’s strategic emphasis on tourism, trade, and infrastructure development will create new opportunities for office spaces, retail complexes, and hospitality projects.
Key legislative reforms are anticipated as Comoros aligns its property and investment regulations with international standards under the guidance of the Government of the Union of Comoros. Recent amendments to the Investment Code and ongoing digitization of land registries are intended to increase transparency, reduce procedural delays, and encourage greater foreign and domestic investment. The Comoros Investment Promotion Agency continues to streamline compliance requirements, making it easier for investors to obtain licenses and understand zoning restrictions.
Despite these positive trends, certain challenges persist. Land tenure complexities and slow-moving court processes remain a constraint, as noted in official documentation from the Ministry of Justice, Islamic Affairs and Public Administration. Continued government-led reforms to clarify land rights and expedite dispute resolution are likely to be a focal point through 2030. Furthermore, compliance with environmental and urban planning regulations is being tightened, particularly for large-scale developments, following updated guidelines from the Ministry of Environment and Forests.
- Office and retail vacancy rates are currently moderate but projected to decline gradually as business activity and tourism recover post-pandemic, per trends reported by the Central Bank of the Comoros.
- Foreign direct investment inflows, although modest, are expected to rise in the medium term as regulatory clarity improves and regional connectivity increases.
- Government-backed infrastructure projects—including port and airport upgrades—will likely spur demand for logistics, warehousing, and hospitality-related real estate.
Strategically, investors are recommended to focus on mixed-use and hospitality projects in urban centers, engage early with local authorities for compliance, and monitor ongoing reforms in land management. Collaborating with government agencies and leveraging incentives under the national investment code will be critical for successful, future-proof commercial real estate ventures in Comoros through 2030.
