Authored by the expert who managed and guided the team behind the Mozambique Property Pack
Yes, the analysis of Maputo's property market is included in our pack
Property prices in Maputo have recovered from their post-2018 decline and are now growing at 3-7% annually as of September 2025.
Residential properties in Maputo city centre average $3,240-$3,500 per square metre, with luxury units reaching $4,950 per m², while suburban areas range from $1,700-$2,100 per m². Prime districts like Polana Cimento and Sommerschield command the highest prices, while emerging areas like Costa do Sol and Matola offer better growth potential at lower entry points.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mozambique, based on reliable facts and data, not opinions or rumors.
Maputo's property market shows steady recovery with 3-7% annual growth, making it one of Africa's most expensive cities for real estate.
Foreign investors face 21-24% mortgage rates and 30-50% deposit requirements, with rental yields ranging from 4.6-7.3% gross.
| Property Type | Price per m² (USD) | Rental Yield |
|---|---|---|
| City Centre Apartments | $3,240 - $3,500 | 6.0% - 7.3% |
| Luxury Units | Up to $4,950 | 4.6% - 5.5% |
| Suburban Properties | $1,700 - $2,100 | 5.5% - 6.8% |
| Polana Cimento | $3,200+ | 6.5% - 7.3% |
| Costa do Sol | $1,800 - $2,200 | 5.8% - 6.5% |
| Matola | $1,700 - $2,100 | 5.5% - 6.2% |
Fact-checked and reviewed by our local expert
Alexia Vieira
Founder and President of Fundacion Khanimambo and Humbi Farm
What are the current average prices per square metre for different property types in Maputo?
As of September 2025, residential properties in Maputo city centre average $3,240-$3,500 per square metre.
Luxury units in prime locations can reach as high as $4,950 per m², representing the top tier of Maputo's property market. These premium properties are typically found in prestigious areas like Polana Cimento and Sommerschield, offering high-end finishes and prime locations.
Suburban areas present more affordable options, with prices typically ranging from $1,700 to $2,100 per m². These areas include emerging districts like Costa do Sol and Matola, which offer better value for money while still providing good access to the city centre.
The price differential between city centre and suburban properties reflects the premium placed on central location, with city centre properties commanding approximately 50-65% higher prices than suburban alternatives.
It's something we develop in our Mozambique property pack.
How have property prices evolved over the past five years, and what are the projections for the next five to ten years?
Maputo's property market experienced stagnation or decline from 2020 to 2022 due to economic instability and global uncertainties.
Since 2023, the market has shown strong recovery with prices now growing at 3-7% annually. This recovery reflects improved economic conditions, increased foreign investment, and growing confidence in Mozambique's real estate sector.
Projections for the next five to ten years indicate steady growth of 4-6% per year, which would result in cumulative capital appreciation potential of 50-80% in well-connected areas by 2035.
Areas with ongoing infrastructure investments, particularly Costa do Sol and Matola, are expected to outperform the market average. These districts benefit from new road networks, utilities, and commercial developments that enhance their attractiveness to both residents and investors.
The projected growth rates assume continued political stability, economic development, and infrastructure improvements across Maputo.
What are the most sought-after areas in Maputo for residential properties, and how do their prices compare?
| Area | Price per m² (USD) | Key Features |
|---|---|---|
| Polana Cimento | $3,200+ | Prestigious location, established infrastructure |
| Sommerschield | $3,200+ | High-end residential area, close to amenities |
| Costa do Sol | $1,800-$2,200 | Coastal location, growing infrastructure |
| Matola | $1,700-$2,100 | Industrial proximity, transport links |
| Maputo City Centre | $3,240-$3,500 | Central location, business district access |
What are the typical total costs involved in purchasing a property, including taxes, notary fees, and other associated expenses?
Property Transfer Tax represents the largest additional cost at 2% of the property value, paid by the buyer during the transaction.
Notary and Public Deed Fees typically range from 1-2% of the purchase price, varying based on property value and complexity of the transaction. These fees are essential for legal registration and cannot be avoided.
Stamp Duty adds 0.2-0.4% of the property value to the total cost. Real Estate Agent Commission ranges from 3-5% and is often paid by the seller but may be factored into the final sale price, affecting buyers indirectly.
Annual Property Tax (IPRA) applies at 0.4% for residential properties, representing an ongoing cost for property owners. Additional costs may include legal fees for due diligence, property inspection fees, and insurance setup costs.
Total additional costs typically amount to 4-8% of the property value, not including the potential impact of agent commissions on the final purchase price.
What are the prevailing mortgage interest rates for foreigners, and what deposit percentages are typically required?
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What are the estimated monthly mortgage repayments for a foreigner purchasing a property in Maputo?
Mortgage interest rates for foreigners are exceptionally high, generally ranging from 21-24% for fixed 20-year loans.
Banks typically require deposits of 30-50% from foreign buyers, depending on their risk assessment and financial profile. The higher deposit requirements reflect the increased risk banks associate with foreign borrowers.
For a $200,000 property with a 22% interest rate, 20-year term, and 40% deposit, monthly repayments would be approximately $2,175. This calculation assumes financing $120,000 after the initial deposit.
The high interest rates make cash purchases significantly more attractive for foreign investors. Many investors opt to finance properties through international lenders or use cash to avoid the steep local borrowing costs.
Actual mortgage offers vary significantly by lender, applicant profile, and specific property characteristics, with some banks offering slightly better terms for established clients or larger deposits.
What are the rental yields for different property types, and how do they compare to other major cities in Africa?
Rental yields in Maputo range from 4.6-7.3% gross, with variation based on location and property type.
Prime locations like Polana Cimento and Sommerschield typically yield close to the upper end at 6.5-7.3%, reflecting strong demand from expatriates and high-income locals. City centre apartments generally achieve yields of 6.0-7.3%.
Suburban areas yield moderately less at 5.5-6.8%, but offer potential for capital appreciation as infrastructure develops. Luxury units, despite higher purchase prices, typically yield 4.6-5.5% due to their premium pricing.
Compared to other major African cities, Maputo's yields are competitive with Lagos (4-6%), Nairobi (6-8%), and Johannesburg (5-7%). However, Maputo's entry prices are among the highest in Africa, which can limit accessibility for some investors.
It's something we develop in our Mozambique property pack.
Which areas in Maputo offer the best potential for capital appreciation over the next five years?
Costa do Sol offers the best potential for capital appreciation due to its coastal location and ongoing infrastructure investments.
- Costa do Sol benefits from new road networks, utility upgrades, and planned commercial developments that will enhance property values
- Matola presents strong growth potential due to its proximity to industrial areas and improving transport links to central Maputo
- Flood-safe suburbs with new infrastructure development offer secure investment opportunities with growth potential
- Areas near planned BRT (Bus Rapid Transit) routes are expected to see increased demand and price appreciation
- Districts benefiting from Chinese infrastructure investments typically show stronger growth prospects
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mozambique versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How do property prices in Maputo compare to other major cities in Africa, such as Nairobi, Lagos, or Johannesburg?
Maputo is currently one of the most expensive cities in Africa for property investment, with prices exceeding those in most comparable markets.
Nairobi's property prices range from $1,800-$2,600 per m², making Maputo approximately 25-35% more expensive than Kenya's capital. Lagos commands $2,500-$3,800 per m², placing it in a similar range to Maputo but with greater variation.
Johannesburg offers the most affordable option among major African cities, with city centre properties often under $2,000 per m², making Maputo 60-75% more expensive than South Africa's economic hub.
The high prices in Maputo reflect limited supply, strong demand from expatriates, and the costs associated with importing construction materials. Despite higher entry costs, Maputo offers competitive rental yields and strong growth potential.
Foreign investors should consider these price differentials when evaluating African property markets, as Maputo requires higher initial capital but may offer superior long-term returns.
What are the legal requirements for foreigners wishing to purchase property in Maputo, and how does the process differ from that for Mozambican citizens?
Foreigners can only buy property under 50-year renewable leasehold arrangements, not full freehold ownership.
The process requires obtaining authorization from the Mozambique Ministry of Land, which involves demonstrating that the property will be used for approved purposes such as residence or business operations. Foreign buyers must also register the leasehold with local authorities.
Unlike Mozambican citizens who can purchase freehold properties outright, foreigners face additional bureaucratic steps and restrictions on land use. The leasehold system means foreigners don't own the land permanently but have strong usage rights for the lease period.
The process is more complex and time-consuming for foreigners, typically requiring legal representation and careful navigation of bureaucratic requirements. Proper due diligence is essential to ensure compliance with all regulatory requirements.
Both foreigners and citizens must comply with property registration requirements, but the process for citizens is generally more straightforward and offers greater ownership security.
What are the risks associated with investing in Maputo's real estate market, and how can they be mitigated?
- High borrowing costs and limited access to formal mortgages make financing challenging for foreign investors
- Currency volatility can affect returns when converting rental income or sale proceeds back to foreign currencies
- Legal complexity and leasehold restrictions create additional risks compared to freehold ownership systems
- Vulnerability to climate events, particularly flooding in certain areas, can damage properties and affect values
- Political and economic instability can impact property values and market liquidity
What are the financing options available for foreigners wishing to invest in Maputo's real estate market?
Cash purchases dominate the Maputo property market due to expensive lending terms and limited financing options for foreigners.
Mozambican banks offer mortgages to foreigners but at steep rates of 21-24% with large deposit requirements of 30-50%. These terms make borrowing financially unattractive for most international investors.
International lenders may provide financing options, but these typically require significant collateral and may not be familiar with Mozambican property law. Developer financing is occasionally available for new projects, but terms vary significantly.
Some banks offer secured loans for renovation and construction projects, but eligibility can be challenging and requires strong financial credentials. Private financing through local investors or development companies may be available but requires careful legal structuring.
It's something we develop in our Mozambique property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Maputo's property market presents both opportunities and challenges for international investors.
While prices are high compared to other African cities, the market offers competitive rental yields and strong growth potential in emerging areas.
Sources
- The AfricanVestor - Maputo Property Market Analysis
- African Exponent - Most Expensive Real Estate in Africa 2025
- The AfricanVestor - Maputo Price Forecasts
- Global Property Guide - Africa Square Meter Prices
- Mozambique Expert - Best Neighborhoods in Maputo
- AirROI - Maputo Property Investment Report
- InTouch Relocations - Mozambique Insights
- The AfricanVestor - Mozambique Real Estate for Foreigners
- Pam Golding Properties - Mozambique Buyers Guide
- APIEX - Tax Compliance Guide for Foreign Investors