Mauritius’s booming property market
During the last few years, many foreigners have been turning to Mauritius to settle and/or invest in real estate. A wise choice when you know the tax advantages offered by the Mauritian government but also, the beauty of its landscapes and its cultural diversity. Yet foreigners’ interest in Mauritius impacts on its real estate market, which is in full expansion. Mauritius is thriving and offers profitable investments. And recently, there has been a strong development of the luxury rental market – exceptional properties are highly sought after by the French, Swiss, Belgians, South Africans and English – and an increase in construction projects. Opportunities are still waiting to be seized, especially as the Mauritian government ensures that the programmes accessible to foreigners do not go overboard.
Steady growth in recent years
Years ago, the people of Mauritius were the ones handling the construction of housing. Consequently, this limited access to home ownership. Today, this has changed and the economic stability of Mauritius has contributed to the development of real estate. The Government has also taken measures over the past 10 years to attract foreign investors and facilitate their settlement. These measures and legal frameworks have also helped to prevent land speculation for the inhabitants by limiting investment to new programmes. As a result, it is not possible to invest anywhere in the territory. There are also formalities and conditions that must be met in order to invest locally. In concrete terms, this has resulted in new operations and the demand for new housing has increased. In Mauritius, the real estate market has not only been growing steadily but has also been booming in recent years. According to figures from the Economic Development Board (EBD), between 2006 and 2019, 2737 transactions were carried out in the Mauritian archipelago, for a total amount of 1.84 billion euros.
A dynamic market dominated by an increase in property construction
Mauritius’s splendid paradise landscapes are not the only reason for investors to acquire property. Its political and economic stability provides reassurance. Similarly, Mauritius’ tax regime is considered one of the most advantageous in the world. The increase in tourism is also having an impact on the real estate market, especially on the luxury rental market. Indeed, tourists appreciate villas and apartments offering a privileged geographical location (on the waterfront for example) and prestigious services. Consequently, new projects have been developed to meet this demand.
A further reason for the strong growth of the Mauritian market, is the interest rates which are rather low and therefore, which encourage foreign buyers to invest. For example, in September 2019, outstanding bank loans for property purchases reached 1.75 billion euros!
Thus, for foreign investors (who are more and more demanding and want to benefit from goods that respect nature while having top-of-the-range services), real estate in Mauritius is a stable and profitable sector. Similarly, premises are also benefiting from the good growth of the market by acquiring modern goods and services.
