Malawi is one of the most beautiful countries in Southern Africa with a variety of tourist attractions including Lake Malawi and is known for its friendly people. For residential property buyers, the country also offers a wide variety of options according to Seeff Malawi.
Types of Residential Properties in Malawi
These range from modern apartments and houses to traditional rural homes.
Apartments and flats are most popular in the urban areas, particularly in the capital city of Lilongwe and the commercial hub of Blantyre. These range from one-bedroomed units to spacious three-bedroomed apartments and are usually in gated communities with modern amenities such as swimming pools, gyms, and 24/7 security.
Houses and villas are most common in the rural areas and come in various sizes and styles, from traditional mud huts to modern brick-built homes, often set in serene environments with beautiful landscape views.
Townhouses are similar to apartments but are usually smaller in size and located in smaller developments. They are popular in urban areas and offer a more affordable alternative to apartments. Duplexes are two-story homes, also usually located in urban areas, and are popular with families as they offer more space and privacy compared to apartments.
Vacant land is also available in both urban and rural areas, and can be used for building a house, apartment, or other types of structures.
Average Prices of Residential Properties
The real estate market in Malawi is relatively small and less developed compared to other countries. However, there are still some general trends and price ranges that can be observed.
In urban areas such as Lilongwe, Blantyre, and Mzuzu, the average prices for residential properties tend to be higher compared to rural areas. In Lilongwe (capital city of Malawi), the average price for a residential property can range from MWK 30 million to MWK 150 million (approximately USD 26,000 to USD 130,000) for a standard house or apartment.
In Blantyre (second-largest city), the average price is slightly lower compared to Lilongwe. A standard house or apartment can range from MWK 20 million to MWK 100 million (approximately USD 17,000 to USD 85,000).
In Mzuzu, in the northern region of Malawi, the average prices are generally lower compared to Lilongwe and Blantyre. A standard house or apartment in Mzuzu can range from MWK 15 million to MWK 70 million (approximately USD 13,000 to USD 60,000).
Note that these are average price ranges and actual prices can vary significantly depending on factors such as location within the city, size of the property, amenities available, and overall condition of the property. Prices are also subject to change and may vary depending on the current market conditions.
Who Can Buy Residential Property in Malawi?
Property ownership and acquisition are primarily governed by the Land Act of 2016 and the Constitution. These laws outline the rights and restrictions for both citizens and foreigners when it comes to buying residential property in the country.
Citizens of Malawi have the right to own and acquire residential property in the country. They can freely buy, sell, lease, or transfer land without any significant restrictions.
Foreigners, on the other hand, face certain restrictions when it comes to acquiring residential property in Malawi. The Land Act distinguishes between two categories of foreigners: non-citizens and non-residents. Non-citizens with a valid residence permit have the same rights as citizens and can freely acquire land for residential purposes without any additional requirements or limitations.
Non-citizens who are non-residents, however, face more stringent regulations and can only acquire land for residential purposes with permission from the Minister responsible for lands. This permission is granted on a case-by-case basis and is subject to conditions and restrictions.
Even with permission, non-resident non-citizens cannot acquire customary land. Customary land refers to land held under traditional tenure systems by local communities. This type of land can only be owned and used by citizens of Malawi.
Residential Buying Process in Malawi
The residential buying process in Malawi is a multi-step process that involves several parties, including the buyer, the seller, and various professionals such as real estate agents, lawyers, and surveyors.
There are various ways to find a property from online websites and adverts to liaising directly with an estate agency such as Seeff. Real estate agents have access to a wide range of verified properties and can help the buyer find a property that meets their needs and assist them from the start of their property journey through to the transfer of ownership.
It is important for buyers to view and inspect the property before putting in an offer to purchase. An agent is usually vital to this process as they can assist in the negotiating process. The seller may accept the offer, reject it, or make a counteroffer and so on until an agreement is reached.
Once the offer is accepted, the buyer should conduct inspections and due diligence to ensure that the property is in good condition and there are no unexpected issues. This may include hiring a home inspector, reviewing the property's title, and researching any zoning or building restrictions.
The buyer will then secure financing not just to cover the purchase price but must also have funds available to cover the costs associated with the purchase and transfer of ownership.
In Malawi, buyers are required to pay stamp duty and registration fees to complete the registration process. Stamp duty is a tax levied on property transactions, while registration fees cover the cost of registering the property in the buyer's name.
The final step in registering a new residential buyer in Malawi is to register the property at the Lands Office. This involves submitting all relevant documents, including the transfer of ownership deed, proof of payment of stamp duty and registration fees, and any other required paperwork.
The registration process is designed to ensure that the transaction is legally binding, and that the buyer's rights and interests are protected. This is done by a legal professional. Once the registration process is complete, the buyer becomes the legal owner of the residential property in Malawi.
If you would like to know more about buying or renting property in Malawi, contact Seeff Malawi on +265 (0) 111 686 904 or +265 (0) 994 704 825 (mobile) or visit https://malawi.seeff.com