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
Where are the best places to invest in Mozambique right now? Is Maputo still the top pick, or are cities like Beira, Nampula, and Pemba gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Mozambique and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Xai-Xai is attracting attention for its beachfront properties and rising demand for vacation rentals due to growing tourism
Xai-Xai is becoming a hotspot for beachfront properties thanks to Mozambique's booming tourism.
In 2023, Mozambique welcomed a surge of foreign tourists, with 16,000 arrivals each week, a 35% increase from the pandemic years. This trend is expected to keep rising, with projections of 850,000 tourist arrivals by 2025. This influx is not just numbers; it's a sign of growing interest in the region's natural beauty and cultural richness.
The demand for vacation rentals is also on the rise, making Xai-Xai's beachfront properties even more appealing. While we don't have specific occupancy rates for Xai-Xai, the global short-term rental market is expected to grow by 10.9% by 2025. This suggests that Xai-Xai is likely riding the same wave, driven by changing travel habits and what people now look for in a getaway.
Investments in infrastructure and new developments are highlighted in the Mozambique tourism industry report, pointing to potential growth in Xai-Xai's beachfront property market. The government's efforts, like streamlined visa processing and sustainable tourism practices, are paving the way for this expansion. These initiatives are not just about numbers; they're about making Mozambique a more accessible and attractive destination.
For those considering buying property, Xai-Xai offers a unique opportunity. The combination of growing tourism and government support makes it a promising spot for investment. The local market is likely benefiting from these broader trends, making it a smart choice for those looking to invest in a vacation home or rental property.
Sources: Africa Tourism Connect, Short Term Rentalz, GlobeNewswire
2) Gurue is gaining attention for agricultural investments, boosting demand for residential and commercial properties
Gurue is quickly becoming a hot spot for agricultural investments, thanks to its booming soya production.
In recent years, Gurue has produced nearly 6,000 tonnes of soya, which has pumped over $2 million into the local economy. This surge in production is not just a local success story; it's catching the eye of investors from all over. The buzz around soya is making Gurue a place to watch.
Land in Gurue is in high demand, and it's easy to see why. As soya production potential grows, both local farmers and outside investors are scrambling to get their hands on property. This rush is driving up land prices, signaling a thriving agricultural scene. If you're thinking about buying property, now might be the time to act.
The Mozambican government is also playing a big role by supporting agricultural infrastructure and policies. While there aren't specific incentives just for Gurue, the overall support for agriculture in Mozambique is encouraging investments in areas like Gurue. This has led to new projects and expansions, with big companies diving into soya production and building community ties through contract and sharecropping programs.
Gurue's transformation is a mix of local efforts and broader governmental support, making it a prime spot for both residential and commercial property investments. The combination of a thriving soya industry and supportive policies is creating a unique opportunity for those looking to invest in the region.
Sources: Open University, World Bank
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.
3) Chimoio is gaining interest with its agricultural growth driving demand for residential and commercial spaces
Chimoio is buzzing with real estate activity thanks to its booming agricultural sector.
Investments in agriculture are transforming the area, as noted in the IGM 2023 Annual Conference on Agricultural Development in Mozambique. These efforts are not just about farming; they’re about making life better for smallholder farmers in places like Chimoio.
The Agricultural Development Master Plan for the Nacala Corridor, which includes Chimoio, is a game-changer. It’s all about boosting local livelihoods by ramping up agricultural productivity. As the economy grows, so does the need for more homes and businesses.
Property prices and rents are climbing in Mozambique, with a price to rent ratio of 24.04 in the city center and 23.26 outside. This spike shows that more people are looking for places to live and work, drawn by the agricultural boom.
Chimoio is becoming a magnet for workers and professionals, thanks to the agricultural opportunities sprouting up. This influx is driving the demand for housing and commercial spaces.
As agriculture thrives, Chimoio is seeing a ripple effect, with increased real estate demand reflecting the region’s economic vitality.
Sources: UNU-WIDER, JICA Report, Numbeo
4) Quelimane is gaining interest with infrastructure upgrades boosting property values and rental demand
Quelimane is turning into a hot spot thanks to major infrastructure upgrades.
In 2023, Mozambique's government inked a big deal with the Millennium Challenge Corporation to improve roads and infrastructure in Zambezia, which includes Quelimane. This $537 million project is set to enhance connectivity and make the area more resilient to climate change over the next five years.
These upgrades are likely to boost property values in the area. While we don't have specific numbers on property sales in Quelimane, the construction industry in Mozambique is expected to grow by 3.9% in 2024. This growth, fueled by investments in energy, transport, and telecommunications, could positively impact property prices and transactions in Quelimane.
Adding to the buzz, StartupCity Quelimane has launched a factory for recycled bikes, a unique initiative that could draw in investors and developers. Despite challenges like Cyclone Freddy, this project aims to make Quelimane the biking city of Africa, further enhancing its market potential.
These developments are not just about infrastructure; they're about creating a vibrant community that attracts both residents and businesses. The combination of improved roads and innovative projects like StartupCity is setting the stage for increased rental demand and property value appreciation.
With these changes, Quelimane is positioning itself as a city with growing opportunities, making it an attractive option for those looking to invest in property. The ongoing improvements are expected to transform the local real estate market, offering promising returns for early investors.
Sources: World Mayor, Business Wire
5) Tete is gaining interest for its proximity to coal mining, offering high rental yields
Tete is buzzing with real estate interest thanks to its closeness to coal mining operations.
Back in 2023 and 2024, the Mozambican government handed out new coal mining contracts to big players like Midwest Africa and Rio Tinto-Mozambique. These contracts cover vast areas, promising a hefty coal output, which has put Tete on the map. This has drawn significant attention to the region, making it a prime spot for property investment.
The mining boom has brought a wave of workers to Tete, both from within Mozambique and from abroad. This influx has pushed up the demand for rental properties as these workers need places to stay close to their jobs. It's a win-win for those looking to rent out properties.
Rental yields in Tete are notably higher compared to other parts of Mozambique. With yields ranging from 4.6% to 7.3%, the rental market is thriving, thanks to the bustling mining industry. Investors are seeing Tete as a goldmine for real estate opportunities.
For anyone considering buying property in Mozambique, Tete offers a unique advantage. The strong demand for housing driven by mining activities makes it a lucrative option. The region's growth is closely tied to the coal industry, ensuring a steady stream of potential tenants.
As the mining operations continue to expand, the real estate market in Tete is expected to keep growing. Investors are keen to tap into this potential, making it an exciting time for property buyers in the area.
Sources: World Coal, SOS Barnebyer, Mozambique Property Blog
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6) Matola is gaining interest for its affordable housing and proximity to Maputo, with potential for appreciation
Matola is gaining popularity because it's so close to Maputo, making it a hot spot for commuters.
In 2024, Matola's population hit around 1,915,040, growing at a steady 3.38% each year. This boom is mainly because folks are leaving Maputo, looking for better living conditions.
What's really drawing people in is the Greater Maputo mobility project. With a hefty $459 million budget, this project is all about building new roads in Matola, boosting connectivity and making it a prime spot for living.
Matola's real estate is a big draw too. Housing here is more affordable than in Maputo, which is great for families and professionals wanting a better lifestyle without breaking the bank.
Plus, there's a good chance for property values to go up, making it a smart choice for real estate investors eyeing future gains.
With all these factors, Matola is shaping up to be a promising market, offering a mix of affordability and potential growth.
Sources: World Population Review, Club of Mozambique
7) Vilankulo is gaining attention with tourism boosting demand for vacation rentals and beachfront properties
Vilankulo is quickly becoming a hotspot for tourism development.
In 2023, the town welcomed 1.1 million visitors, marking a strong comeback from the pandemic slump. This surge is expected to keep climbing, with more growth anticipated by 2025. The local government is making it easier for tourists by offering visa exemptions to 29 countries and launching an E-Visa platform. These efforts are paying off, as more travelers find Vilankulo accessible and convenient.
Infrastructure improvements are also underway, with investments in roads and airports. This makes Vilankulo not just a beautiful destination but also a more accessible and convenient spot for travelers. The town's charm and ease of access are drawing international investors to its real estate market. As a result, property prices are on the rise, and inquiries from potential buyers are increasing.
Media coverage has played a significant role in putting Vilankulo on the map as an emerging travel destination. This attention has not only attracted more tourists but also piqued the interest of investors looking for opportunities in the area. The town's growing popularity is evident in the rising demand for vacation rentals and beachfront properties.
For those considering buying property in Vilankulo, now might be the perfect time. The combination of increased tourism, government support, and media attention is creating a vibrant market. With its stunning beaches and improving infrastructure, Vilankulo is becoming a prime location for real estate investment.
Sources: Tourism Already Accounts For an Important 4% of GDP, Mozambique Tourism Industry Report 2024, Vilanculos Accommodation in Mozambique
8) Nacala is attracting interest with its port expansion, boosting commercial and industrial real estate investments
Nacala is buzzing with excitement over its port expansion.
The Port of Nacala recently underwent a major facelift, thanks to a €250 million investment from the Japan International Cooperation Agency. This upgrade has made the port more efficient, allowing it to handle larger cargo volumes with ease. In 2023, the port set a new record by handling 3.1 million tons of cargo, marking a 12.5% increase from the previous year. This surge highlights the port's growing significance in the region.
With the ability to manage up to 10 million tons of cargo annually, Nacala's port is a powerhouse. Its deep access channel means ships can dock at any time, making it a favorite among international shipping companies. The Mozambican government is keen on making Nacala the go-to port for landlocked countries like Zimbabwe and the Democratic Republic of Congo. This strategic move is drawing in new commercial and industrial projects, as businesses look for alternatives to the crowded ports in South Africa.
For those eyeing property investments, Nacala's port expansion is a game-changer. The area is ripe for development, with opportunities in both commercial and industrial real estate. As the port continues to grow, so does the potential for lucrative investments. The buzz around Nacala is not just about the port; it's about the ripple effect on the local economy and real estate market.
Investors are taking note of Nacala's strategic location and improved logistics capabilities. The port's expansion is not just a local story; it's a regional one, impacting trade routes and economic dynamics. As Nacala positions itself as a key player in the region, the demand for property is expected to rise, making it an attractive option for savvy investors.
Sources: Further Africa, 360 Mozambique, Malawi Nation
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.
9) Beira is gaining interest for its rebuilding and modernization efforts, offering opportunities in residential and commercial sectors
Beira is quickly becoming a prime spot for investors as it rebuilds and modernizes after Cyclone Idai.
The city is buzzing with activity, especially in logistics and trade, thanks to the Port of Beira's impressive 122% increase in goods handled in July 2024. This boost in transportation and logistics is a magnet for new investments.
The government is playing a big part in this transformation with initiatives like the "Post-Cyclone Building Back Better and Resilience Building Umbrella Programme." These efforts are not just about recovery; they’re about making Beira more resilient and attractive for investors seeking stable opportunities.
New commercial developments are popping up, such as the Beluluane Industrial Park, which has already attracted over $3 billion in investment. This trend is also visible in Beira, signaling a vibrant environment for both residential and commercial growth.
For those eyeing property in Beira, the city offers a unique blend of opportunity and growth. The ongoing developments and government support make it a promising place for future investments.
With its strategic location and improving infrastructure, Beira is not just rebuilding; it’s setting the stage for a thriving economic future.
Sources: 360 Mozambique, Prevention Web, Club of Mozambique
10) Pemba is booming with its strategic location near natural gas reserves, attracting investors and expatriates
Pemba is buzzing with a real estate boom thanks to its prime spot near natural gas reserves.
In 2024, property prices in Pemba jumped by 16.8% year-over-year, hitting €1,796 (US$1,949) per square meter. This surge shows just how hot the real estate market is getting. The city's strategic location is drawing in investors and expatriates, eager to tap into the opportunities.
Pemba's population is now over 200,000 residents, fueled by international companies and expatriates flocking to the city. The Mozambican government is backing this growth with a $220 million concession for the Pemba Port and Logistics Terminal, boosting infrastructure for hydrocarbon exploration.
The Mozambique LNG Project is a game-changer, expected to pull in over $60 billion in investments. This influx is vital for Mozambique's economy and cements Pemba's role in the global energy scene. As more expatriates and companies settle in, new residential and commercial properties are sprouting up.
With Pemba's strategic location and booming natural gas projects, it's no wonder the city is becoming a magnet for real estate investors. The combination of economic prospects and infrastructure improvements is creating a perfect storm for growth.
As Pemba continues to evolve, the real estate market is set to thrive, offering lucrative opportunities for those looking to invest in a city on the rise.
Sources: Global Property Guide, Mozambique LNG Project, MegaProject, Mozambique Expert, IFC
11) Inhambane is gaining attention for its coastal properties and growing demand for holiday homes and eco-tourism accommodations
Inhambane is quickly becoming a hotspot for coastal property investments.
In 2023, the area saw a boom in tourist developments with 32 new projects licensed, increasing the accommodation capacity to over 8,000 rooms and 14,000 beds. This growth is just the beginning, as plans for 40 more developments are underway, promising even more rooms and job opportunities.
The buzz around Inhambane is evident from the influx of tourists. Last year, the province welcomed about 200,000 tourists, bringing in significant revenue. During the festive season, over 51,000 tourists flocked to the area, with coastal resorts enjoying high occupancy rates, highlighting the strong demand for holiday homes.
The government is pulling out all the stops to promote Inhambane as a prime tourist destination. By participating in national and international fairs, they aim to attract more investment. This strategy is paying off, with 37 foreign investment projects valued at 542 million meticais, indicating a keen interest from international buyers.
Inhambane's appeal isn't just about numbers; it's about the lifestyle. The region offers stunning beaches and a laid-back vibe, making it perfect for those seeking holiday homes or eco-tourism accommodations. The local culture and natural beauty add to its charm, drawing in both tourists and investors.
With the ongoing developments and government support, Inhambane is set to become a major player in the coastal property market. The combination of new projects, tourist interest, and foreign investments is creating a vibrant real estate scene.
Sources: 360 Mozambique, 360 Mozambique, Travel Research Online
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.