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Residential Real Estate Leases - Malawi

Malawi

in Malawi, a country in southeastern Africa, is expected to witness significant growth in its Residential Real Estate Leases market market.
According to projections, the revenue of this market is set to reach US$2.29bn in the year 2024.
Out of all the segments within this market, House Leases dominate with a projected market volume of US$1.59bn in 2024.
Furthermore, the Residential Real Estate Leases market market is expected to maintain a steady growth rate over the years.
With an annual growth rate (CAGR 2024-2029) of 10.13%, the revenue is estimated to reach US$3.71bn by the year 2029.
This indicates a positive trend and highlights the potential for further expansion in the coming years.
Despite the economic challenges faced by Malawi, the demand for residential real estate leases remains steady due to the increasing urbanization and population growth in the country.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

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

Customer preferences: Customers in Malawi are increasingly opting for residential real estate leases due to several factors. Firstly, leasing offers more flexibility compared to purchasing a property, allowing individuals to easily relocate or upgrade their living arrangements. Additionally, leasing provides a more affordable option for those who may not have the financial means to purchase a property outright. Furthermore, the convenience of leasing, with landlords responsible for property maintenance and repairs, is appealing to many customers.

Trends in the market: One key trend in the Residential Real Estate Leases market in Malawi is the increasing demand for rental properties in urban areas. This can be attributed to the rapid urbanization occurring in the country, with more people migrating from rural areas to cities in search of better job opportunities and improved living conditions. As a result, the demand for rental properties, particularly in major cities like Lilongwe and Blantyre, has significantly increased. Another trend in the market is the emergence of serviced apartments. These are fully furnished apartments that offer additional amenities and services such as housekeeping and security. This trend is driven by the growing number of expatriates and international organizations in Malawi, who prefer the convenience and comfort of serviced apartments.

Local special circumstances: Malawi's real estate market is influenced by several local special circumstances. Firstly, the limited availability of affordable housing options has led to an increased demand for rental properties. This is particularly prevalent among the younger population who are unable to afford purchasing a property due to high property prices and limited access to mortgage financing. Furthermore, the political stability and economic growth in Malawi have attracted foreign investors, leading to increased demand for rental properties. These investors often require accommodation for their employees, further driving the demand for rental properties.

Underlying macroeconomic factors: The growth in the Residential Real Estate Leases market in Malawi can be attributed to several underlying macroeconomic factors. Firstly, the country's stable economic growth has resulted in increased disposable income among the population, allowing more individuals to afford rental properties. Additionally, the government's efforts to improve infrastructure and provide basic amenities in urban areas have made these locations more attractive for residential leasing. Furthermore, favorable government policies and regulations have encouraged investment in the real estate sector, leading to the construction of more rental properties. The government has also implemented measures to protect the rights of both landlords and tenants, further boosting confidence in the market. In conclusion, the Residential Real Estate Leases market in Malawi is experiencing significant growth and development due to customer preferences for flexibility, affordability, and convenience. The increasing demand for rental properties in urban areas, the emergence of serviced apartments, and the limited availability of affordable housing options are key trends in the market. The local special circumstances of limited affordable housing options and the influx of foreign investors also contribute to the market's growth. Underlying macroeconomic factors such as stable economic growth, government initiatives to improve infrastructure, and favorable policies and regulations further support the development of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.