Mauritius’s real estate market is experiencing remarkable growth, with property prices and demand surging across key regions. Foreign investment schemes drive much of this momentum, while government initiatives support local housing needs. Understanding price trends, regulatory frameworks, and regional variations can help buyers and investors make informed decisions in this dynamic environment.
Mauritius Real Estate Market: Trends, Prices, and Investment Opportunities in 2025
You can view more details on this page: https://www.barnes-mauritius.com/en/luxury-real-estate/mauritius. Residential property prices are on the rise across Mauritius, with the most recent data pointing to a 27% year-on-year increase in the Residential Property Price Index (RPPI) for Q3. Apartments now average MUR 21.7 million (USD 457,000), while houses reach MUR 28.5 million (USD 620,000), driven by strong demand and a stable macroeconomic backdrop.
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The dual market structure means local buyers can purchase island-wide, but foreign buyers have access only to designated government schemes like the Property Development Scheme (PDS) and Integrated Resort Scheme (IRS). These schemes are the gateway for non-residents, with popular choices being luxury villas and high-end apartments in coastal regions. Properties eligible for foreign buyers command a premium, averaging over MUR 33.5 million (USD 645,000).
Foreign demand—especially from French, South African, and British nationals—fuels much of the market’s momentum, concentrating sales in the northern and western areas. Government initiatives and ongoing development projects continue to shape the market outlook for investors.
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Factors Shaping Mauritius Real Estate: Regulatory Framework, Buyer Demographics, and Economic Drivers
Regulatory Framework and Government Incentives
Foreign ownership Mauritius properties is strictly regulated, yet remains accessible through dedicated schemes. Only government incentives property Mauritius such as the Integrated Resort Scheme (IRS), Real Estate Scheme (RES), and Property Development Scheme (PDS) grant eligibility. These initiatives are central to the investor guide to Mauritius property, clarifying that transactions require Economic Development Board approval, a specified minimum purchase price, and additional registration fees. Real estate developers in Mauritius actively participate in these schemes, ensuring that international investors find compliant residential property options with the benefit of tax advantages Mauritius property investment delivers—such as no capital gains or inheritance tax for offshore owners.
Buyer Demographics and Demand
The surge in real estate market growth Mauritius has been powered predominantly by international demand. French investors account for the largest segment, followed by South Africans and British buyers. Despite these trends, local Mauritian buyers contribute a smaller, yet significant, share. This diverse buyer pool shapes the landscape that real estate developers in Mauritius must cater to, pushing for variety and upscale amenities.
Macroeconomic, Tourism, and Policy Impacts
Mauritius benefits from macroeconomic stability, robust tourism, and investment-friendly fiscal policy—all influencing both property financing Mauritius and overall buyer confidence. Tourism growth, especially, supports luxury rentals and enhances the appeal of foreign ownership Mauritius properties. Government incentives property Mauritius and regulatory frameworks continue to guide a resilient, expanding market.
Investment Performance: Rental Market Yields, Mortgage Conditions, and Market Outlook
Rental Performance and Yields
Rental yields in Mauritius display clear patterns based on property market segmentation and location. Short-term rentals, especially those in sought-after coastal regions, deliver gross yields ranging from 5% to 9%, benefiting from the tourism-driven surge. In contrast, long-term rentals average 3.5%, with the inland property rental market Mauritius offering more modest returns. Coastal demand, powered by both tourists and expatriates, pushes rental prices higher and drives up property prices in Mauritius for premium segments. Regional differences persist, as yields in the central parts remain lower but offer affordability and stable occupancy.
Mortgage Conditions and Buyer Accessibility
The mortgage options Mauritius presents are broad, with rates stretching between 2.5% and 13.75%. A rise in the Bank of Mauritius’ policy rate gradually impacts borrowing conditions. Still, the accessibility to property financing Mauritius remains strong, supporting continued growth in the Mauritius real estate sector overview. As mortgage penetration increases, buyers—local or foreign—benefit from improving loan products, enabling more dynamic participation in the property market.
Real Estate Market Outlook
Mauritius real estate market forecasts suggest steady expansion, anchored by sound GDP growth, vibrant construction activity, and demographic pressures. Challenges include fiscal tightening, skills shortages, and climate risks, but the overall Mauritius real estate market analysis signals resilience and long-term growth prospects.