Home Property in Mozambique
How to buy a house in Mozambique?
Here you will find the detailed information about real estate purchasing in Mozambique:
- the right way to choose the property and to effect the deal;
- property taxes and duties that should be paid;
- everything about home loans in Mozambique;
- home property management and renting;
- rental, commercial properties and related investment properties.
Real estate for sale
Most recent offers from house owners in Mozambique and from real estate agencies. Advertisements with the fixed price and auctions are listed here.
You can leave a comment and give advice to other visitors planning to buy a home in Mozambique.
Housing sector does not feature a distinct price policy in terms of square meters in Mozambique. There are no usual statistics or trend analysis either. Local pricing is quite simple – a house or a land lot cost as much as buyer is willing to offer, plus the property transfer tax (SISA), which is 2.2 % of transaction amount. Prices, especially in Maputo, are surprisingly high, determined by severe shortage of town residences. A two- or three-room flat in the most “working-class” district goes for $50 000. Price for such apartment in Alto Mae (lower middle class) goes up to $75 000, while in Polana district (upper middle class) it can reach $90–100 thousand. It should be noted, that unlike conventional Russian classification, two- and three-room apartments in Mozambique are T1 and T2 respectively, since the hall is not considered a room and therefore not counted as such.
For the most part, Maputo consists of buildings, erected back under Portuguese rule, that is before 1976. During the civil war and right after it ended in 1992, no housing was built. Construction process resumed only in the XXI century; however, mostly villas and condominiums (guarded private complexes), rather than high-rise apartment buildings were erected. Consequently, Mozambique’s capital suffers from persistent deficit of housing, especially the new-built property. Many local owners sell their apartments, which they once expropriated from previous Portuguese owners, to the new elite, moving to the cheaper suburbs, almost entirely inhabited by black Africans. The key buyers are senior civil servants, businesspeople and managers. These cannot usually afford to pay the whole price at once, so they take out loans in Portuguese mortgage banks, since the local mortgage market is quite under-developed.
Foreigners are interested in spacious town residences and business offices, but above all things in homesteads, located in regions with modern infrastructure, such as Matola (the largest suburb of Maputo), Sommerschield–2 and Bairro Triunfo, located to the northeast from the capital. Matola is a big city about 15 minutes’ drive from Maputo, although most buildings here, unlike Maputo, are low-rise, having 2–3 “our” floors (first floor in Mozambique is not counted, similar to the British “ground floor”). A villa in Matola is worth $80 000–120 000 (in need of repair). A decent villa, featuring a pool and a garage, costs $200 000. While an outstanding mansion with 5–7 bedrooms, swimming pool, garage, electric fence and several other features goes for $400 000–500 000. The same price applies to nice villas with pools in Bairro Triunfo and Sommerschield–2. For example, a lovely two-storey villa with seven rooms (six rooms and a hall) is on sale for $600 000.
For such a modest country as Mozambique, prices are completely over the top. However, they are not likely to fall any time soon. A new house with three bedrooms in the Super Mares complex was worth $200 000 a year ago, and now goes for $280 000. Houses with four bedrooms in the Sommerschield complex, which also cost $200 000 six years ago, now amount to $450 000. As can be seen from the above, prices for Sommerschield property had an annual 15 % increase, while prices for Super Mares property dramatically increased 40 % in one year.
If you are a foreigner, or “Hello, Muzungu”
It is safe to say that Mozambique is not a country, where anything can be sold. Land, for one, cannot be purchased, since it is state-owned property. Any transactions related to land only secure the right of enjoyment, which is given for a period of 50 years and can be further extended for the same term.
There are many objects of real property that were nationalized back when Mozambique gained independence and now belong to the state, being registered in the government real estate agency APIE (Administracao do Parque Imobiliario do Estado). Foreigners are not allowed to purchase such property, which makes up no less than 85–90 % of housing in the country. The only real estate available for acquisition is whichever was built after 1992 and has always been private property.
The laws on real estate transactions as well as sale and purchase agreement (Contrato Promessa compra e venda) are based on the corresponding Portuguese legalities. Yet, there are also some specific features that may require an explanation by a local lawyer. Property registration can be extremely complicated for a foreigner and may involve the highest possible expenses.