The Real Estate Management Council (Remac), established six months ago to regulate and professionalise Malawi’s real estate sector, is facing significant operational challenges, including the absence of offices, staff, a board and regulatory guidelines. Remac chief executive officer Sarah Kauta Chauma acknowledged the challenges in an interview, saying the council has not yet commenced operations despite being formulated in May this year. “It was established in May but has not started operations because the secretariat has not secured office space and recruitment of staff is yet to be done,” she said.
Chauma added that the council is also yet to have a board to oversee its operations. “Additionally, we are waiting for the Ministry of Lands to formulate regulations that will guide our operations,” she said. According to commentators and industry experts, the delays are disadvantaging both tenants and landlords, as estate agents — including unregistered ones — continue to operate with little oversight.
These agents often determine commission rates and house-viewing fees at will and, in some cases, exploit desperate accommodation seekers. Some tenants, for example, struggle to recover deposits after agents allocate houses to other clients who allegedly offer kickbacks. However, Chauma said there is hope that order will be restored once Remac becomes fully operational.
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“Once everything is in place, we will crack down on unregistered agents and bring sanity to the sector,” she said. Blantyre resident Steven Nkhoma said finding decent and affordable housing has been a major challenge during his 11 months in the city. “I first settled in Kanjedza, then moved to Chigumula, later to Soche, Chiwembe and Namiyango.
All these moves involved agents who demanded K10 000 viewing fees and 40 percent commission for houses that did not meet my specifications,” he said. Similarly, Patrick Thonyiwa of Area 25 in Lilongwe and Henry Malata of Mzuzu said they each paid up to 50 percent commission and K20 000 in viewing fees to agents who facilitated access to their current homes. Industry experts say unscrupulous agents have thrived due to weak law enforcement, low public awareness and legislative gaps.
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