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
If you're considering rental property investment in Mozambique, understanding current yields is essential before you commit your capital.
This article breaks down gross and net rental yields across Mozambique's cities, neighborhoods, and property types, so you can make informed decisions.
We update this blog post regularly to reflect the latest market conditions in Mozambique's residential rental sector.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Mozambique.
Insights
- Rental yields in Mozambique average around 8.5% gross in early 2026, which is notably higher than most African capitals due to lower purchase prices relative to rental demand.
- The gap between gross and net yields in Mozambique typically runs 2.5 to 3.5 percentage points, meaning a landlord earning 8.5% gross might keep only 5.5% after costs.
- Maputo rents can drop from MZN 15,000 to MZN 8,000 for similar units within just 2 kilometers, making micro-location the single biggest yield driver.
- Secondary cities like Beira, Nacala, and Tete often deliver higher gross yields than Maputo because property prices are lower while institutional and trade-corridor demand stays steady.
- Prime Maputo neighborhoods like Sommerschield and Polana typically show compressed yields of 6% to 7% gross because purchase prices are bid up by expat and diplomatic demand.
- Landlords in Mozambique report needing about one month to find new tenants on average, which translates to a realistic vacancy buffer of around 8% of annual rent.
- Smaller units in the 1 to 2 bedroom range tend to re-let faster and deliver the best net yields because they match the largest renter pool of young workers and small families.
- LNG project timelines and urban water infrastructure upgrades are the two biggest rent catalysts that could push yields higher in specific Mozambique neighborhoods through 2026.
Fact-checked and reviewed by our local expert
Alexia Vieira
Founder and President of Fundacion Khanimambo and Humbi Farm
What are the rental yields in Mozambique as of 2026?
What's the average gross rental yield in Mozambique as of 2026?
As of early 2026, the average gross rental yield in Mozambique sits at approximately 8.5%, which reflects the country's relatively affordable property prices compared to the rents landlords can charge.
The realistic range for gross rental yields across most typical residential properties in Mozambique runs from about 6.5% to 11.5%, with the wide spread driven mainly by differences in city, neighborhood, and tenant segment.
Compared to regional benchmarks, Mozambique's average gross yield is on the higher end for Sub-Saharan Africa, largely because property prices remain more accessible than in markets like South Africa or Kenya, while rental demand stays solid in key urban centers.
The single most important factor influencing gross rental yields in Mozambique right now is location, since Maputo's prime areas compress yields due to high prices, while secondary cities and outer Maputo districts offer stronger returns because entry costs are lower.
What's the average net rental yield in Mozambique as of 2026?
As of early 2026, the average net rental yield in Mozambique comes in at approximately 5.6%, which is what landlords can realistically expect to keep after covering operating costs, vacancy, and taxes.
The typical difference between gross and net rental yields in Mozambique runs between 2.5 and 3.5 percentage points, meaning a property earning 8.5% gross will likely net around 5% to 6% after all deductions.
The expense category that most significantly reduces gross yield to net yield in Mozambique is vacancy and turnover, since landlords typically need about one month to find new tenants, and this downtime directly eats into annual income.
The realistic range for net rental yields across most standard investment properties in Mozambique falls between 3.8% and 8%, with the spread reflecting how maintenance costs, property management fees, and local tax compliance vary widely depending on whether you're in the formal prime segment or the mass market.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Mozambique.
We made this infographic to show you how property prices in Mozambique compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What yield is considered "good" in Mozambique in 2026?
A gross rental yield of 9% or higher is generally considered "good" by local investors in Mozambique, because it provides enough cushion to cover the country's macro volatility, vacancy risk, and maintenance demands while still delivering solid real returns.
The threshold that typically separates average-performing properties from high-performing ones in Mozambique sits around 7% net yield, since anything above that level means the property is beating inflation plus risk with room to spare and surviving vacancy without becoming stressful.
How much do yields vary by neighborhood in Mozambique as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Mozambique can reach 5 percentage points or more, which makes micro-location one of the most critical variables for any rental investment decision.
The neighborhoods that typically deliver the highest rental yields in Mozambique are working-class and emerging urban areas like Maxaquene, Mafalala, Mavalane, Hulene, Laulane, and Zimpeto in the Maputo metro, where entry prices remain accessible while rental demand stays strong from local workers and families.
The neighborhoods that typically deliver the lowest rental yields in Mozambique are prime expat-oriented districts like Sommerschield, Polana, and Costa do Sol, where property prices have been bid up by diplomatic and corporate demand, compressing returns despite high absolute rents.
The main reason yields vary so much across Mozambique neighborhoods is that purchase prices move faster than rents in prestigious areas, while in more affordable districts, solid tenant demand meets lower capital requirements, pushing yields higher.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Mozambique.
How much do yields vary by property type in Mozambique as of 2026?
As of early 2026, gross rental yields across different property types in Mozambique range from about 6% for large villas in prime areas to 11% or more for room-by-room rentals and small units in working-class neighborhoods.
The property type that currently delivers the highest average gross rental yield in Mozambique is small units and rooms, because they attract the largest pool of renters and re-let quickly, though they require more hands-on management.
The property type that currently delivers the lowest average gross rental yield in Mozambique is large villas in prime Maputo districts, because high purchase prices outpace what even wealthy expat tenants are willing to pay in rent.
The key reason yields differ between property types in Mozambique is that smaller, more affordable units match the budgets of most local renters, while larger luxury properties serve a narrow expat tenant pool that can't absorb the capital cost premium.
By the way, you might want to read the following:
What's the typical vacancy rate in Mozambique as of 2026?
As of early 2026, the average residential vacancy rate in Mozambique sits at approximately 6%, which translates to roughly three weeks of downtime per year for a typical stabilized rental property.
The realistic range of vacancy rates across different neighborhoods in Mozambique runs from about 4% in high-demand commuter areas to 10% or higher in expat-dependent niches that can swing sharply during economic shocks.
The main factor that currently drives vacancy rates up or down in Mozambique is the balance between local tenant demand and how quickly landlords can replace departing tenants, with CAHF research showing that about one month to find a new tenant is typical in Maputo.
Compared to national and regional averages, Mozambique's vacancy rate is moderate but can spike significantly in downturns, as documented cases show units sitting empty for six months or more when market conditions break.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Mozambique.
What's the rent-to-price ratio in Mozambique as of 2026?
As of early 2026, the average rent-to-price ratio in Mozambique is approximately 0.70% per month, meaning a property worth MZN 10 million (roughly USD 155,000 or EUR 145,000) would typically rent for about MZN 70,000 monthly.
A rent-to-price ratio of 0.7% per month or higher is generally considered favorable for buy-to-let investors in Mozambique, since this directly translates to an 8.4% annual gross yield, which is the same math just expressed on a monthly basis.
Compared to other African cities, Mozambique's rent-to-price ratio is relatively strong, sitting above Johannesburg and Nairobi but below some frontier markets where property prices are even more compressed.
We have made this infographic to give you a quick and clear snapshot of the property market in Mozambique. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Mozambique give the best yields as of 2026?
Where are the highest-yield areas in Mozambique as of 2026?
As of early 2026, the top three highest-yield areas in Mozambique are Zimpeto and Mavalane in the Maputo metro, Beira's central port-linked neighborhoods, and Nacala along the logistics corridor, where purchase prices stay low while rental demand remains consistent.
The estimated average gross rental yield range in these top-performing areas like Zimpeto, Mavalane, and central Beira runs from about 9% to 11.5%, making them significantly more lucrative than prime Maputo on a pure yield basis.
The main characteristic these high-yield areas share is that they combine affordable entry prices with steady tenant demand from local workers, public sector employees, NGOs, and trade-corridor activity, rather than relying on volatile expat flows.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Mozambique.
Where are the lowest-yield areas in Mozambique as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Mozambique are Sommerschield, Polana, and the Costa do Sol corridor in Maputo, where high property prices driven by scarcity and prestige compress returns despite premium rents.
The estimated average gross rental yield range in these low-yield prime areas typically falls between 5.5% and 7%, which means investors are trading higher yields for tenant quality, stability, and long-term capital appreciation potential.
The main reason yields are compressed in these areas of Mozambique is that expat demand, diplomatic presence, and supply constraints have pushed purchase prices up faster than rents can follow, squeezing the ratio.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Mozambique.
Which areas have the lowest vacancy in Mozambique as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Mozambique are Zimpeto and Mavalane in the Maputo metro, along with central Beira pockets near the port and services, where everyday renters compete for limited decent-quality stock.
The estimated vacancy rate range in these low-vacancy areas typically runs between 3% and 5%, meaning landlords experience only two to three weeks of downtime per year on average.
The main demand driver that keeps vacancy low in these areas of Mozambique is proximity to jobs, transport links, and basic infrastructure, which attracts a steady stream of working families who need reliable housing near their workplaces.
The trade-off investors typically face when targeting these low-vacancy areas is that while occupancy stays high, tenant segments may have tighter budgets and less tolerance for rent increases, which can limit income growth over time.
Which areas have the most renter demand in Mozambique right now?
The top three neighborhoods currently experiencing the strongest renter demand in Mozambique are Polana and Sommerschield for the expat and diplomatic segment, plus Zimpeto and Matola for the broader local market seeking affordable quality housing.
The type of renter profile driving most of the demand in these areas splits between international workers and embassy staff in prime Maputo, and young local professionals, small families, and new migrants in the working-class and suburban zones.
Rental listings in these high-demand neighborhoods typically get filled within two to four weeks, with CAHF evidence suggesting one month is the standard timeframe for finding new tenants in the Maputo market.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Mozambique.
Which upcoming projects could boost rents and rental yields in Mozambique as of 2026?
As of early 2026, the top three upcoming infrastructure or development projects expected to boost rents in Mozambique are ongoing LNG investment in the north, the Maputo-Matola water supply upgrades led by FIPAG, and transport corridor improvements linking secondary cities.
The neighborhoods most likely to benefit from these projects include Costa do Sol and parts of Matola for infrastructure upgrades, plus Pemba and surrounding areas for LNG-linked demand, though security conditions remain a variable.
Investors might realistically expect rent increases of 5% to 15% in affected neighborhoods once these projects reach completion or significant milestones, with the premium concentrated in areas where livability and service reliability improve most noticeably.
You'll find our latest property market analysis about Mozambique here.
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What property type should I buy for renting in Mozambique as of 2026?
Between studios and larger units in Mozambique, which performs best in 2026?
As of early 2026, smaller units in the one to two bedroom range tend to outperform larger units in Mozambique in terms of both rental yield and occupancy, because they match the budgets and needs of the largest renter pool.
The typical gross rental yield for small units in Mozambique ranges from 8% to 11% (MZN yields vary widely, roughly USD 150 to 400 monthly rent for affordable units, or EUR 140 to 370), while larger three-bedroom-plus units often yield 6% to 8% due to higher capital requirements.
The main factor explaining why smaller units outperform in Mozambique is that most renters are young workers, new migrants, and small families with limited budgets, so demand concentrates heavily in the affordable segment.
One scenario where larger units might be the better investment choice in Mozambique is when targeting the corporate or diplomatic tenant segment in prime Maputo, where larger villas and apartments command premium rents and longer lease terms despite lower percentage yields.
What property types are in most demand in Mozambique as of 2026?
As of early 2026, the most in-demand property type in Mozambique is the two-bedroom apartment or small house with reliable water and electricity, because this format balances affordability with the quality features tenants prioritize.
The top three property types ranked by current tenant demand in Mozambique are two-bedroom apartments, small standalone houses, and modern apartments in secure compounds, reflecting the priorities of both local families and professional renters.
The primary demographic trend driving this demand pattern in Mozambique is rapid urbanization concentrated in Maputo and secondary cities, with young workers and families seeking decent housing near employment centers and services.
One property type that is currently underperforming in demand and likely to remain so in Mozambique is the oversized luxury villa in non-prime locations, because the narrow pool of tenants who can afford such properties strongly prefers established prestige neighborhoods.
What unit size has the best yield per m² in Mozambique as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Mozambique is roughly 40 to 70 square meters, which corresponds to compact one or two bedroom apartments and small houses.
The typical gross rental yield per square meter for that optimal unit size in Mozambique runs around MZN 250 to 400 per m² monthly (approximately USD 4 to 6 or EUR 3.50 to 5.50), depending on location and quality.
The main reason smaller or larger units tend to have lower yield per square meter in Mozambique is that very small rooms carry higher management costs relative to rent, while large properties have narrower tenant pools and longer vacancy periods between leases.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Mozambique.
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 costs cut my net yield in Mozambique as of 2026?
What are typical property taxes and recurring local fees in Mozambique as of 2026?
As of early 2026, the estimated annual property tax and municipal fees for a typical rental apartment in Mozambique run around 0.5% of property value, which might translate to roughly MZN 50,000 to 150,000 per year (approximately USD 780 to 2,350 or EUR 720 to 2,170) depending on the property's assessed value and location.
Other recurring local fees landlords must budget for annually in Mozambique include municipal waste collection charges and, in the formal segment, income tax on rental earnings that can run 10% to 20% of declared rent, adding another MZN 30,000 to 100,000 or more (USD 470 to 1,560 or EUR 430 to 1,440) to annual costs.
Together, these taxes and fees typically represent about 8% to 15% of gross rental income in Mozambique, which is a meaningful drag that landlords must account for when calculating net yields.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Mozambique.
What insurance, maintenance, and annual repair costs should landlords budget in Mozambique right now?
The estimated annual landlord insurance cost for a typical rental property in Mozambique runs around 0.2% to 0.6% of property value, which translates to roughly MZN 20,000 to 90,000 per year (approximately USD 310 to 1,400 or EUR 290 to 1,300), though coverage availability varies.
The recommended annual maintenance and repair budget in Mozambique is 1.5% to 2.5% of property value, higher than global norms because coastal humidity, power fluctuations, and water system issues accelerate wear on buildings and fixtures.
The type of repair expense that most commonly catches landlords off guard in Mozambique is electrical system damage caused by power surges and outages, along with plumbing failures linked to inconsistent municipal water supply.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Mozambique is about 2% to 3% of property value, which could mean MZN 200,000 to 450,000 (USD 3,100 to 7,000 or EUR 2,900 to 6,500) for a mid-range rental property.
Which utilities do landlords typically pay, and what do they cost in Mozambique right now?
In most unfurnished local-market rentals in Mozambique, tenants pay their own electricity and water bills, but in the expat and prime segment where rent is often quoted as "inclusive," landlords may cover some or all utilities.
The estimated monthly cost for landlord-paid utilities in a typical rental unit where rent includes services runs around MZN 3,000 to 8,000 per month (approximately USD 45 to 125 or EUR 40 to 115), depending on unit size and consumption patterns.
What does full-service property management cost, including leasing, in Mozambique as of 2026?
As of early 2026, the estimated monthly property management fee for full-service management in Mozambique runs between 8% and 12% of collected monthly rent, which could translate to MZN 4,000 to 15,000 per month (approximately USD 60 to 235 or EUR 55 to 215) depending on rent level.
The typical leasing or tenant-placement fee charged on top of ongoing management in Mozambique is 50% to 100% of one month's rent as a one-time charge per new tenant, sometimes plus small administrative fees for contract preparation.
What's a realistic vacancy buffer in Mozambique as of 2026?
As of early 2026, landlords in Mozambique should set aside approximately 8% of annual rental income as a vacancy buffer, which accounts for the typical one-month gap between tenants that landlords commonly experience.
The typical number of vacant weeks per year landlords experience in Mozambique is about four to five weeks for well-located properties, though this can stretch to eight weeks or more in expat-dependent niches or during economic downturns.
Buying real estate in Mozambique can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Mozambique, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| CAHF/FSDMoç Mozambique Rental Market Study | It's a specialist housing-finance research organization publishing full methodology and primary survey results for Mozambique's rental market. | We used it for Mozambique-specific rental structure, rent levels, and vacancy behavior in Maputo. We also used its district examples to ground neighborhood yield differences with real names. |
| INE Censo 2017 | It's Mozambique's official statistics agency and the national baseline for population and housing facts. | We used it to anchor how big renting is and why yields differ between Maputo and provincial cities. We treated it as the ground truth for household and housing context. |
| INE Census Portal | It's the official INE landing page for census outputs and metadata. | We used it to validate the census publication and confirm we're citing the official release. We used it as a reference hub for readers wanting related tables. |
| Banco de Moçambique Economic Outlook | It's the central bank, making it the most credible source for inflation and conditions that affect rents and affordability. | We used it to set the macro backdrop for early 2026 since rent growth tends to follow income and inflation. We used it to check whether headline yields should be interpreted as stable or changing. |
| Banco de Moçambique Highlights Page | It's the central bank's official publication page pointing to the full report. | We used it to confirm report timing and publication framing. We used it as a navigation source for readers who prefer the English portal. |
| IMF 2025 Article IV Mission | It's the IMF, one of the most widely cited sources for country macro conditions and risks. | We used it to contextualize 2026 risk factors that matter to vacancies and tenant solvency. We used it to keep yield guidance realistic for early 2026. |
| World Bank Mozambique Data | It's the World Bank's standardized, comparable macro database. | We used it to triangulate growth, inflation, and urbanization context that drives rental demand over time. We used it as a cross-check against central bank narrative. |
| Knight Frank Mozambique Report | It's a global real estate consultancy with recurring market coverage and clear qualitative market signals. | We used it to anchor where prime demand concentrates and what drives it. We used it to support neighborhood-level differentiation and the role of LNG and expat demand. |
| EDM Electricity Tariffs | It's the national electricity utility's official tariff publication. | We used it to estimate landlord-paid utilities when rent is inclusive. We used it to size a realistic utilities line item in net yield calculations. |
| AIM Water Tariff Report | It's a national news agency reporting directly from the sector regulator announcement. | We used it to confirm that regulated water prices moved recently. We used it to avoid outdated assumptions on water bills for 2026. |
| FIPAG Maputo Water Supply Program | FIPAG is the public entity responsible for urban water systems, a key determinant of rentable quality in many areas. | We used it to tie infrastructure upgrades to micro-area rent upside. We used it to identify where service constraints can keep vacancy higher or cap rents. |
| RSM Mozambique Tax Pocket Guide | It's a major audit and tax firm producing a structured, citable summary of Mozambique's tax rules. | We used it to size recurring tax drag that converts gross yield into net yield. We used it as a cross-check against legal notes when rates differ by taxpayer type. |
| PwC Tax Summaries Mozambique | It's a big-four reference that's regularly updated and transparent about what it's summarizing. | We used it to validate withholding and tax mechanics that can affect rental cashflows. We used it as a second opinion so we're not relying on a single tax summary. |
| TTA Advogados Property Tax Guide | It's a specialist law firm note focused specifically on property-sector taxation in Mozambique. | We used it to check the practical treatment of rental agreements and tax compliance risk. We used it to inform net yield buffers since enforcement varies by segment. |
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