Residential Real Estate - Malawi | Statista Market Forecast

The Residential Real Estate market market in Malawi is expected to reach a value of US$97.73bn by 2024.
It is projected to exhibit an annual growth rate (CAGR 2024-2029) of 6.48%, leading to a market volume of US$133.80bn by 2029.
In terms of global comparison, China is expected to generate the highest value in the Real Estate market, with an estimated worth of US$112.9tn by 2024.
The demand for residential real estate in Malawi is on the rise due to increasing urbanization and population growth.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Malawi is experiencing steady growth and development.

Customer preferences: Customers in Malawi are increasingly looking for affordable and well-maintained residential properties. They value properties that offer a good balance between price and quality, as well as those that are located in safe and convenient neighborhoods. In recent years, there has been a growing demand for modern amenities and facilities such as gated communities, swimming pools, and fitness centers. Additionally, customers are also showing an interest in environmentally-friendly and energy-efficient properties.

Trends in the market: One of the key trends in the residential real estate market in Malawi is the increasing popularity of apartment living. As urbanization continues to rise, there is a growing demand for compact and affordable housing options. Apartment complexes are being developed in major cities to cater to this demand, offering a range of amenities and services. This trend is driven by the need for convenience and the desire to live in close proximity to work, schools, and other amenities. Another trend in the market is the rise in the development of affordable housing projects. The government and private developers are focusing on providing housing options for low-income individuals and families. These projects aim to address the housing shortage in the country and provide affordable and decent housing for the population. This trend is driven by the government's commitment to social development and the need to improve living conditions for all citizens.

Local special circumstances: One of the unique challenges in the residential real estate market in Malawi is the limited availability of mortgage financing. Many potential buyers are unable to access financing to purchase properties, which restricts the growth of the market. The government and financial institutions are working towards increasing access to mortgage financing and implementing policies to make it easier for individuals to own homes. This includes initiatives such as reducing interest rates, providing subsidies, and improving credit scoring systems.

Underlying macroeconomic factors: The growth and development of the residential real estate market in Malawi are influenced by several macroeconomic factors. These include population growth, urbanization, and economic stability. As the population continues to grow, the demand for housing also increases. Urbanization further drives the demand for housing in major cities, as more people move from rural areas to urban centers in search of better opportunities. Economic stability plays a crucial role in the market as it affects consumer confidence and purchasing power. When the economy is stable and growing, individuals are more likely to invest in real estate. Overall, the residential real estate market in Malawi is experiencing positive growth and development. The focus on affordable housing and the rise in apartment living reflect the changing preferences of customers. However, challenges such as limited mortgage financing need to be addressed to fully unlock the market's potential. With the support of the government and the private sector, the market has the potential to continue its growth trajectory and provide housing options for all segments of the population.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Malawi

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Living Space

Methodology

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