Property demand up as sector expands—experts

Fueling Growth: Malawi’s Surging Property Market

Post was last updated: July 22, 2025

Key Business Points

  • Demand for residential property in Malawi has increased by 15 percent, driven by expatriates and local professionals seeking housing in urban areas such as Lilongwe and Blantyre.
  • Commercial real estate is also growing, with rental rates for office spaces and retail properties increasing by over 10 percent year-on-year, presenting opportunities for investment and business growth.
  • Listed property firms Icon Properties plc and Mpico plc anticipate significant profit growth, with projected increases of 33 and 40 percent respectively, reflecting the strength of their portfolios and prudent cost management.

Malawi’s real estate sector is experiencing significant growth, with demand for residential property jumping by 15 percent, according to data from Knight Frank, a real estate consultancy firm. This growth is largely driven by expatriates and local professionals seeking housing in urban areas such as Lilongwe and Blantyre. The commercial real estate sector is also booming, with rental rates for office spaces and retail properties increasing by over 10 percent year-on-year. Favourable policies, such as the amended land laws, have contributed to this growth, making it an attractive time for zinthu za njilo (real estate) investments.

The growth in the real estate sector is also reflected in the performance of listed property firms. Icon Properties plc and Mpico plc, both listed on the Malawi Stock Exchange (MSE), anticipate significant profit growth in the first six months of the year. Icon Properties plc expects its net profit to grow by 33 percent to K13 billion, while Mpico plc projects a 40 percent increase to K7.99 billion. Eric Chapola, board chairperson of Icon Properties, attributed the profit growth projection to the strength of the company’s portfolio, prudent cost management, and a focus on tenant satisfaction and operational efficiency.

Despite the positive growth prospects, Kondwani Makwakwa, an equity investment analyst at Stockbrokers Malawi Limited, noted that the stagnation of share prices for property firms is largely driven by low investor demand for property counters. This presents a challenge for companies looking to raise capital through the stock market. However, with the middle class emerging and increased purchasing power, there are opportunities for businesses to capitalize on the growing demand for malo abwino (good housing) and other real estate services. As the sector continues to grow, it is essential for businesses to stay informed about market trends and kutenga malo (to invest wisely) to maximize returns.

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Vanessa Banda
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