Real estate sector performance in 2025 good—report

Malawi’s real estate sector performance in 2025 was good supported by a sizeable rental income growth, improved space occupancy levels and increases in property revaluation gains, data show. Published financial results indicate that in 2025, Malawi Stock Exchange (MSE)-listed Mpico plc registered a profit growth of 37 percent to K19 billion while Icon Properties plc profit also jumped by 25 percent to K32.6 billion largely due increases in rental income. In an interview yesterday, Icon Properties plc board chairperson Eric Chapola said the real estate sector reaffirmed its resilience in 2025, benefiting from sustained demand for quality commercial space and disciplined asset management.

“Growth in rental income signals stable occupancy and tenant demand while fair value gains point to the enduring worth of well located, high-quality assets,” he said. Knight Frank managing director Desmond Namangale said in an interview yesterday that the real estate market continues to experience improved performance and growth characterised by rising property prices and rental rates, particularly in urban areas. He said this growth is driven by a mix of high demand, urbanisation and structural reforms aimed at stabilising the economy.

“This growth can be attributed to real estate’s special character in that it hedges against inflation,” he said. Namangale said the challenges affecting real estate market remain high costs of construction, limited access to mortgage financing and an over-reliance on unregulated estate agents. Demand for housing, especially in urban areas, is said to have grown by 15 percent in 2025, according to data from Knight Frank, a property management firm.