Authored by the expert who managed and guided the team behind the Mozambique Property Pack
Everything you need to know before buying real estate is included in our Mozambique Property Pack
Mozambique's property market is experiencing significant momentum driven by major gas investments and infrastructure development.
The residential property market in Maputo and secondary cities shows strong growth potential with rental yields consistently outperforming regional averages, while urbanization trends and expanding middle-class demographics create sustained housing demand.
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.
Mozambique's property market is set for significant growth through 2030, driven by GDP expansion from 1.9% in 2024 to potentially 11% by 2030 as gas projects commence operations.
Foreign direct investment in real estate surged 48% in early 2024, with 83.9% channeled into natural gas projects creating spillover effects for property development, particularly around special economic zones.
| Key Metric | Current Status (2025) | 2030 Projection |
|---|---|---|
| GDP Growth Rate | 2.6% | ~11% |
| Urban Population | 40-41% | 45-47% |
| Mortgage Rate (MIMO) | 10.5% | 8-9% |
| Rental Yields (Maputo) | 6-9% | 7-10% |
| Inflation Rate | Single digits | ~5.5% |
| Middle-Class Households | Growing base | +500,000 households |
| FDI in Real Estate | +48% growth | Sustained high growth |
Fact-checked and reviewed by our local expert
Alexia Vieira
Founder and President of Fundacion Khanimambo and Humbi Farm
What has been Mozambique's annual GDP growth rate over the past five years, and how will it evolve between 2025 and 2030?
Mozambique's GDP growth has shown remarkable resilience and recovery over the past five years.
The country experienced a significant contraction of -1.22% in 2020 due to pandemic impacts, followed by a steady rebound with growth of 2.38% in 2021, 4.36% in 2022, and a strong 5.44% in 2023. The 2024 full-year growth moderated to around 1.9%, primarily affected by social unrest and climate-related disruptions.
Looking ahead, economic projections show accelerating momentum. Growth is expected to stabilize at 2.6% in 2025, then accelerate significantly to 3.4% in 2026 and 4.1% in 2027. The most dramatic expansion is forecast for the late 2020s, with GDP growth potentially reaching approximately 11% by 2030 as massive natural gas projects come fully online.
This GDP trajectory creates a favorable environment for property investment, as economic expansion typically drives housing demand, commercial property needs, and overall real estate market growth.
It's something we develop in our Mozambique property pack.
How much foreign direct investment has flowed into Mozambique's real estate sector in the last decade, and what are the projections for the next five years?
Foreign direct investment in Mozambique's real estate sector has experienced substantial growth, particularly in recent years.
FDI as a share of GDP has nearly doubled from 4.5% a decade ago to 8.5% recently, with real estate FDI specifically increasing by 15.2% year-on-year in the first three quarters of 2023. The momentum accelerated dramatically in early 2024, when total FDI surged by 48%, with 83.9% of this investment channeled into natural gas projects but creating significant spillover effects for the real estate sector.
The investment surge is particularly concentrated around special economic zones, where energy projects create demand for housing, offices, and supporting infrastructure. This has created a multiplier effect, with primary energy investments driving secondary real estate development in surrounding areas.
Projections for the next five years indicate continued rapid FDI growth in real estate, driven by the ongoing launch of gas and infrastructure projects and accelerating urbanization. The combination of major energy investments and improving legal frameworks makes Mozambique increasingly attractive to international real estate investors.
This influx of foreign capital is fundamentally reshaping the property landscape, particularly in Maputo and coastal regions where major projects are located.
What percentage of Mozambique's population currently lives in urban areas, and how fast is urbanization growing year on year?
Mozambique's urbanization rate stands at approximately 40-41% of the total population as of 2025.
The country is experiencing annual urbanization growth of around 3%, which represents one of the faster urbanization rates in the region. This urban migration is primarily driven by economic opportunities, particularly those created by major infrastructure and energy projects.
The urbanization trend is creating sustained pressure on housing markets in major cities like Maputo, Beira, and Nampula. As rural populations move to urban centers seeking employment, the demand for both rental and ownership housing continues to outpace supply, creating opportunities for property investors.
This demographic shift fundamentally supports property market growth, as urban populations typically have higher housing expenditure ratios and greater purchasing power compared to rural populations.
How many new housing units are being built annually in Mozambique's main cities like Maputo, Beira, and Nampula, and how does that compare to the estimated housing deficit?
Housing construction in Mozambique's main cities has consistently failed to keep pace with population growth and demand.
| City | Estimated Annual New Units | Population Growth Rate |
|---|---|---|
| Maputo | ~3,000-4,000 units | 4.2% annually |
| Beira | ~1,500-2,000 units | 3.8% annually |
| Nampula | ~1,000-1,500 units | 3.5% annually |
| National Deficit | Hundreds of thousands | Growing annually |
| Affordable Housing Gap | Most acute shortage | Critical need |
The housing deficit is measured in hundreds of thousands of units nationwide, with the gap between supply and demand continuing to widen. Maputo faces the most severe shortage, where a few thousand new units annually cannot meet the needs of rapid population growth and urbanization.
Government and private sector initiatives are underway to address this deficit, but demand still greatly outpaces new supply, especially for affordable and middle-income housing segments. This supply-demand imbalance creates strong fundamentals for property investment and rental markets.
What is the current average price per square meter for residential property in Maputo compared to secondary cities, and how have these prices changed over the last three years?
Residential property prices in Maputo command a significant premium over secondary cities, reflecting the capital's economic concentration and demand dynamics.
Average prices per square meter in Maputo typically range 40-60% higher than in secondary cities like Beira and Nampula, with central Maputo areas commanding the highest premiums. This price differential reflects the concentration of government, business, and expatriate demand in the capital.
Over the last three years, property prices have increased steadily across both Maputo and secondary cities. This growth is driven by improved legal frameworks for foreign investment, an influx of expatriate workers related to energy projects, and general economic recovery. The trend has been particularly pronounced in areas near special economic zones and major infrastructure developments.
Secondary cities have seen more moderate but consistent price appreciation, often outperforming Maputo on a percentage basis as they catch up from lower baseline values. This creates opportunities for investors seeking higher growth potential at lower entry costs.
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How much have commercial property rents in central Maputo increased or decreased annually over the past five years, and what is the forecast for the next three years?
Commercial property rents in central Maputo have shown volatility linked to macroeconomic and political events but generally trend upward during periods of stability.
The rental market has experienced fluctuations correlated with investment cycles and security conditions, with office and retail space demand rising during periods of increased foreign investment activity. Energy sector investments and expatriate presence have particularly supported demand for high-quality commercial space.
Market commentary indicates an overall increase in commercial rents as demand for office and retail space rises with investment cycles, though specific annual percentage changes vary by location, property quality, and tenant profile.
The three-year forecast projects modest rent increases, subject to continued macroeconomic stability and security conditions. The ongoing development of special economic zones and infrastructure projects should support sustained demand for commercial properties in central Maputo.
Investors should expect commercial rental yields to remain attractive, particularly for properties serving the energy sector and international business community.
What is the mortgage interest rate in Mozambique right now, how has it fluctuated in the past decade, and how does it affect borrowing power for middle-class families?
As of September 2025, the central benchmark interest rate (MIMO) in Mozambique stands at approximately 10.5%.
This represents a significant reduction from recent peaks above 13%, reflecting the Bank of Mozambique's monetary policy loosening aimed at supporting lending and economic growth. The central bank has implemented rate cuts specifically to support real sector growth and improve credit accessibility.
For middle-class families, these high interest rates significantly impact mortgage affordability and borrowing capacity. A 10.5% base rate typically translates to mortgage rates of 12-15% or higher for consumers, making homeownership challenging for many middle-income households. However, the downward trend in rates is gradually improving affordability conditions.
The ongoing monetary policy easing is designed to support increased borrowing capacity and economic activity. As rates continue to decline toward single digits, mortgage accessibility for middle-class buyers should improve substantially, potentially unlocking significant pent-up housing demand.
How many property transactions were recorded annually over the past five years, and what share of them involved foreign buyers?
Specific granular data on annual property transaction volumes and foreign buyer participation is not comprehensively published, but market indicators suggest rising activity levels.
Transaction volumes are inferred to be increasing, particularly in Maputo and areas close to special economic zones and major projects. The presence of expatriate workers, diaspora buyers, and international investors has created substantial activity in higher-value property segments.
Foreign buyer participation is especially notable in commercial properties, luxury residential segments, and properties near energy project locations. The combination of improved legal frameworks for foreign investment and increased expatriate presence has driven this trend.
Market observers report that foreign buyers represent a significant portion of transactions in prime Maputo locations and coastal areas, though comprehensive statistics remain limited. This foreign participation provides market liquidity and price stability, particularly in premium segments.
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 is the average rental yield for residential properties in Mozambique's largest cities, and how does it compare with regional markets like South Africa or Tanzania?
Residential rental yields in Mozambique's major cities are considered attractive compared to regional averages, typically ranging from 6% to 9% gross yields.
Maputo generally offers yields in the 6-8% range for quality residential properties, while secondary cities like Beira and Nampula can achieve yields of 7-9%, reflecting higher risk-adjusted returns. These yields are particularly strong for short and medium-term rentals targeting project staff and international professionals.
Compared to regional markets, Mozambican rental yields often match or slightly outperform those in Johannesburg and Dar es Salaam, depending on property segment and location. South African yields typically range 4-7% in major cities, while Tanzanian yields often fall in the 6-8% range, making Mozambique competitive within the regional context.
Ongoing foreign direct investment and population growth support these attractive returns. The presence of expatriate workers from energy projects creates consistent demand for quality housing, underpinning rental income stability and yield maintenance.
It's something we develop in our Mozambique property pack.
How has inflation, currently at what percentage per year, influenced property values and construction costs in Mozambique?
Inflation in Mozambique is currently maintained within single digits through strong monetary management, with projections indicating rates around 5.5% by 2030.
Historical inflation and exchange rate pressures have periodically increased construction costs and property sale prices, creating both challenges and opportunities for the real estate market. Building materials, particularly imported items, have been sensitive to currency fluctuations and inflation cycles.
However, the current monetary policy framework of rate cuts and inflation targeting helps mitigate affordability erosion for property buyers. Lower interest rates partially offset inflation impacts on purchasing power, while controlled inflation supports real asset values like property.
Construction costs remain elevated due to import dependencies, but the improving inflation outlook and currency stability should help moderate future cost increases. Property values have generally kept pace with or exceeded inflation rates, providing real asset protection for investors.
What percentage of Mozambique's population falls into the middle-income bracket, and how many new households are projected to enter this category by 2030?
The middle-income bracket in Mozambique currently represents a modest but growing share of the total population.
While specific percentages vary by definition, the middle class remains relatively small but is expanding rapidly due to infrastructure development, foreign direct investment, and formal sector job creation. Energy projects, government expansion, and service sector growth are the primary drivers of middle-class expansion.
Projections suggest strong middle-class growth as infrastructure and FDI projects create formal employment opportunities. Several hundred thousand new households are potentially expected to enter middle-income categories by 2030, driven by economic diversification and urbanization trends.
This demographic expansion is crucial for property market growth, as middle-income households represent the core target market for residential property sales and quality rental housing. The expanding middle class creates sustainable demand for property ownership and higher-end rental accommodations.
How have large-scale infrastructure projects, such as gas exploration investments or port developments, directly impacted property demand in surrounding regions over the past five years?
Large-scale infrastructure projects have fundamentally transformed property demand patterns across multiple regions of Mozambique over the past five years.
Major oil and gas investments and port developments have directly lifted demand for housing, offices, and logistics properties in affected regions, especially around Palma, Pemba, and Maputo. These projects create immediate housing needs for construction workers, engineers, and support staff, followed by long-term demand from operational personnel.
The infrastructure developments have spurred secondary real estate growth through urban renewal, improved transportation links, and increased land values. Areas around project sites have seen property values increase significantly as improved access and economic activity attract both commercial and residential development.
Beyond direct project impacts, these investments create multiplier effects throughout local economies, supporting demand for retail, hospitality, and service sector properties. The result is comprehensive property market growth that extends well beyond immediate project boundaries.
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.
Mozambique's property market presents compelling opportunities driven by robust economic fundamentals and infrastructure development.
The combination of GDP growth acceleration, sustained FDI inflows, and favorable rental yields creates an attractive environment for both residential and commercial property investment through 2030.
Sources
- Macrotrends - Mozambique GDP Growth Rate
- Trading Economics - Mozambique Full Year GDP Growth
- Trading Economics - Mozambique GDP Growth Annual
- The Global Economy - Mozambique GDP Growth Outlook IMF
- The AfricanVestor - Mozambique Property Investment
- Nedbank - Mozambique Insights June 2025
- World Bank - Mozambique GDP Growth Data
- IMF - Mozambique Economic Profile