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
Maputo's property market is experiencing steady growth with property prices rising 5-7% year-on-year and significant new housing developments on the horizon.
The capital city shows strong rental yields of 4.6-7.3% in central areas, supported by ongoing infrastructure investments and a healthy mix of local and foreign buyers, though high mortgage rates above 20% keep the market primarily cash-driven.
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 residential property market is showing positive momentum with average prices of $3,240-$3,610 per square meter in the city center and strong rental yields up to 7.3%.
Major housing developments like "Cidade Jovem" are set to deliver 6,000-7,000 new units in the next 12 months, significantly higher than the historical average of 1,000-2,000 units annually.
| Market Indicator | Current Status | Forecast/Trend |
|---|---|---|
| Average Price per m² (City Center) | 224,750-230,570 MZN ($3,240-$3,610) | 5-7% annual increase |
| New Housing Supply | 6,000-7,000 units planned | 3-5x historical completion rates |
| Rental Yields (Central) | 4.6-7.3% | Stable with premium area growth |
| Foreign Investment Share | 15-25% in luxury segments | Steady participation expected |
| Mortgage Interest Rates | Above 20% | Cash-driven market continues |
| GDP Growth Projection | 5.0-5.5% annually (2025-2026) | Supports property appreciation |
| Property Price Appreciation | 3-7% annually expected | Higher in emerging suburbs |
Fact-checked and reviewed by our local expert
Alexia Vieira
Founder and President of Fundacion Khanimambo and Humbi Farm
What is the current average price per square meter for residential properties in Maputo?
As of September 2025, residential properties in Maputo city center cost between 224,750 and 230,570 Meticais per square meter, which equals approximately $3,240 to $3,610.
This represents a solid 5-7% increase compared to early 2024, showing steady growth in the Maputo residential market. Suburban areas remain more affordable, with prices ranging from 110,500 to 130,000 MZN per square meter, up 4-6% year-on-year.
Luxury properties in premium neighborhoods like Polana Cimento and Sommerschield exceed 300,000 MZN per square meter. These high-end areas continue to attract both local wealthy buyers and foreign investors, maintaining strong demand despite the overall market's price increases.
The price growth reflects Maputo's position as Mozambique's economic hub, with ongoing infrastructure development and foreign investment supporting property values across different market segments.
How many new housing units are expected to be built in Maputo in the next 12 months?
Maputo expects approximately 6,000 to 7,000 new housing units to be completed in the next 12 months, representing a dramatic increase from historical construction levels.
The major driver is the "Cidade Jovem" project, which alone aims to deliver 6,000 units by late 2027, with a significant portion scheduled for completion within the next year. Additional units from municipal and national housing programs will contribute to this total.
This projected supply represents a 3-5 times increase compared to the past three years, when public housing programs typically completed only 1,500 to 2,000 units annually. The acceleration is primarily driven by private investment and government initiatives to address Maputo's housing shortage.
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This supply increase could help moderate price growth in certain segments while meeting the growing demand from Maputo's expanding population and economy.
What is the current rental yield percentage for apartments and houses in central Maputo versus suburban areas?
Central Maputo delivers rental yields between 4.6% and 7.3% for both apartments and houses, making it one of the more attractive rental markets in the region.
Premium zones within central Maputo are experiencing 8-12% rent increases, pushing yields toward the higher end of this range. Properties in sought-after areas like Polana and the business district command the strongest rental performance.
Suburban areas, including Matola and Marracuene, offer slightly lower yields ranging from 4% to 6%. These areas remain attractive to first-time buyers and investors seeking more affordable entry points into the Maputo property market.
The yield differential reflects the concentration of business activity, expatriate workers, and higher-income residents in central areas, which supports stronger rental demand and pricing power for landlords.
How many property transactions were recorded in Maputo in the past year?
While specific transaction numbers for Maputo aren't widely reported by government agencies, the property market shows positive year-on-year growth estimated at 5-8%.
This growth rate aligns with the price appreciation trends and reflects increased activity from both local buyers benefiting from affordable housing programs and foreign investors maintaining their market presence.
Transaction activity is concentrated in the luxury segment where foreign buyers represent 15-25% of purchases, particularly in high-end developments and central business district properties.
The growth pattern indicates a healthy market with steady demand supporting both price appreciation and transaction volumes across different property segments in Maputo.
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What percentage of property buyers in Maputo are foreign investors compared to local buyers?
Foreign buyers comprise 15-25% of property purchases in Maputo's luxury segments, while local buyers dominate entry-level and mid-range property sales.
This foreign investment share has remained relatively stable over the past five years, with consistent demand from South African, Portuguese, and Chinese investors. The luxury market segments continue to attract international capital due to Maputo's strategic location and economic opportunities.
Local buyer participation has slightly increased in recent years thanks to government affordable housing programs and subsidized loan offerings. These initiatives have made homeownership more accessible to middle-class Mozambican families.
The buyer mix reflects Maputo's dual appeal as both a regional business hub attracting foreign investment and a growing local economy supporting domestic property demand across different price points.
What is the current mortgage interest rate in Mozambique and how does it affect affordability?
Mortgage interest rates in Mozambique currently exceed 20%, making financing extremely expensive and keeping the Maputo property market predominantly cash-driven.
These high rates severely limit affordability for average households, with the median household income struggling to keep pace with property prices. A typical 60-square-meter apartment costs 5,000,000 to 5,400,000 MZN, requiring substantial cash resources.
The price-to-rent ratio stands at 14.3, meaning it would take over 14 years of rent payments to equal a property's purchase price. This math only works for buyers with significant cash reserves or those accessing subsidized government loan programs.
High interest rates effectively segment the market between cash buyers (including foreign investors) and local buyers dependent on government housing initiatives with more favorable financing terms.
How long does it currently take to sell a property in Maputo once it's listed?
Properties in central Maputo typically sell within 60 to 120 days once listed on the market, reflecting strong demand in prime locations.
Suburban properties generally require longer sale periods, especially in the mid-range housing segment where buyers may need more time to arrange financing or compare options. Premium central areas move faster due to cash buyer concentration.
The sale timeline depends heavily on pricing strategy, property condition, and location within Maputo. Well-priced properties in established neighborhoods with good infrastructure access sell more quickly.
Market liquidity remains healthy overall, supported by steady economic growth and continued interest from both local and foreign buyers across different property segments.
What is the current vacancy rate for residential properties in Maputo?
Maputo's residential vacancy rates vary significantly by market segment, with premium areas showing 10-20% vacancy while mid-range properties experience 15-25% vacancy rates.
| Area Type | Vacancy Rate | Occupancy Rate |
|---|---|---|
| Premium Central Areas | 10-20% | 80-90% |
| Mid-range Properties | 15-25% | 75-85% |
| Luxury Developments | 10-15% | 85-90% |
| Suburban Areas | 20-30% | 70-80% |
| Business District | 5-15% | 85-95% |
Top districts maintain strong occupancy rates of 80-90% due to consistent demand from expatriates, foreign corporate employees, and high-income local residents. The business district shows particularly low vacancy rates thanks to proximity to offices and commercial centers.
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.
What are the projected GDP growth and inflation rates for Mozambique over the next 2 years?
Mozambique's GDP is projected to grow 5.0-5.5% annually during 2025-2026, supporting continued demand for residential properties in Maputo.
Inflation is expected to remain around 7-8% per year, which will likely push property appreciation while also increasing building costs and construction expenses for new developments.
This economic outlook suggests property prices will continue rising at 3-7% annually, with the inflation rate providing underlying support for real estate as a hedge against currency devaluation.
The GDP growth supports employment and income growth in Maputo, which should sustain local buying power and rental demand, particularly in the emerging middle-class segments of the market.
What is the expected annual appreciation rate for property prices in Maputo over the next 3-5 years?
Property prices in Maputo are expected to appreciate 3-7% annually over the next three to five years, with emerging suburban areas potentially seeing higher appreciation rates.
Central Maputo areas with established infrastructure will likely see steady appreciation toward the lower end of this range, while developing suburbs benefiting from new infrastructure projects could experience appreciation rates at the higher end.
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The appreciation forecast reflects Mozambique's stable economic growth projections, ongoing infrastructure investments, and continued foreign investment interest in Maputo's property market.
Factors supporting this outlook include planned major infrastructure projects, steady GDP growth of 5-5.5%, and Maputo's role as the country's primary economic center attracting both domestic and international capital.
How much infrastructure investment is planned for Maputo and how might this impact property demand?
Major infrastructure investments are underway in Maputo, including the Maputo Ring Road project, new commercial hubs, and utilities upgrades that will significantly boost property demand in connected areas.
These projects focus on improving connectivity between central Maputo and suburban areas, making previously less accessible neighborhoods more attractive to both residents and investors seeking better value propositions.
Infrastructure development creates a ripple effect where well-connected neighborhoods become more resilient and see faster appreciation. Properties near new transportation links and commercial developments typically outperform the broader market.
The combination of housing development projects like "Cidade Jovem" with infrastructure improvements creates a comprehensive urban development approach that should sustain long-term property demand growth across different market segments.
What is the current affordability index in Maputo and how sustainable is it for long-term growth?
Maputo's affordability index remains strained, with a price-to-rent ratio of 14.3 years, meaning it takes over 14 years of rent payments to equal a property's purchase price.
The current affordability challenge stems from mortgage interest rates above 20% and median household incomes struggling to keep pace with property price appreciation of 5-7% annually.
Long-term market sustainability depends on several key factors: government-backed affordable housing programs, potential mortgage rate reductions, continued wage growth, and the supply of reasonably priced housing units from new developments.
It's something we develop in our Mozambique property pack.
Without policy interventions or significant improvements in financing accessibility, the market will remain primarily accessible to upper-middle-class buyers and foreign investors, limiting broader market expansion potential.
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 a compelling investment opportunity with steady price appreciation, strong rental yields, and major new housing supply coming online.
However, success requires careful consideration of affordability constraints, high financing costs, and the cash-driven nature of most transactions in this emerging market.
Sources
- The AfricanVestor - Maputo Price Forecasts
- The AfricanVestor - Mozambique Price Forecasts
- Zitamar News - Housing Promise Analysis
- 360 Mozambique - Housing Development Fund
- The AfricanVestor - Maputo Property Market
- LinkedIn - Maputo Real Estate Review
- Statista - Mozambique Real Estate Outlook
- The AfricanVestor - Mozambique Real Estate Forecasts