The Mauritius property market is particularly attractive for buyers and investors right now, especially ahead of a rise in property duties from 5% to 10% set to take effect from the 1st of July next year, says Severine Dalais-Pietersen, licensee for Seeff Mauritius.
She says there is now a strategic window for investors to purchase under the current, lower rates. Acting now offers a clear financial advantage in one of the world's most desirable locations, making it the perfect time to acquire a property in Mauritius.
The market has been booming with strong, sustained demand, particularly from foreign investors and high-net-worth individuals, says Severine. The high demand is particularly prevalent in prime coastal locations such as Grand Baie, Pereybere, and the Black River regions are seeing particularly robust demand.
The favourable market conditions are underscored by conducive macro-financial conditions which have bolstered demand for residential properties, according to the Bank of Mauritius. The Mauritius Property Price Index shows strong price appreciation of as much as 21.10% (adjusted for inflation), over the last year. Rentals are expected to show excellent growth, predicted at just over 8% this year.
The repo rate in Mauritius currently stands at 4.5%, while the prime lending rate varies across the major banks between 7 - 7.75%. The home loan rate tends to vary between 6.5% and 8.5% depending on the bank, and the client's profile.
The hike in the duties is part of the Mauritius Budget for 2025-26 which aims to strengthen the economic foundation of the island, and enhance its blend of legal security and financial integrity to make it an even more attractive destination. She says good fiscal management is part of what makes the island and its property market such an attractive prospect.
The good news for buyers and investors is that the minimum investment threshold to qualify for a Residence Permit remains unchanged at USD 375,000. The permit's validity is maintained for the entire duration of property ownership. Property investment offers the ideal route for those looking for a residency option. The most active price range is between USD 400,000 and USD 800,000, she says.
Foreign buyers, especially French and South African, and increasingly now also from the German Market are particularly interested in property investments on the island. The main motivations for purchasing property include relocation for a better quality of life, good returns on their investment, acquiring a "Plan B" with a Permanent Residence Permit, and retirement.
Sellers are mostly downsizing or upgrading. Some clients purchase off-plan developments or plots of land as first-time buyers to resell upon completion for a quick profit. Others choose to resell after five to ten years, capitalising on Mauritius’s appealing capital appreciation, especially since the value of land continues to rise each year depending on the region.
Demand from international clients tends to centre on modern, secure, and lifestyle-oriented properties, and there is a good choice on offer right now, she says. The premier choice remains villas within integrated estates, as buyers seek a complete package of security, privacy, high-end finishes, and access to top class amenities such as golf courses and beach clubs.
Sea-view apartments and penthouses are also extremely popular for their "lock-up-and-go" convenience, stunning views, and strong rental potential. For investors seeking a lower entry point, newly built G+2 certified apartments are in high demand due to their accessibility.
Investment for rentals is another key motivator. The rental market offers lucrative opportunities. Severine says the market is dynamic and robust, driven by high demand and a limited supply of quality properties in prime locations. A steady influx of expatriates and foreign professionals provides an added boost to the market. As a result, rental prices have seen a steady increase in recent years with well-located properties renting out quite quickly.
Strong rental demand coupled with the potential for capital appreciation, therefore makes a compelling case for investors, she adds. Rental rates range from MUR 50,000 to MUR 90,000 per month for prime coastal apartments (two beds), while villas (3-4 beds) range upwards of MUR 130,000 to MUR 250,000 (and significantly more for premium beachfront villas). In the central and business hub areas, rates for apartments (2-3 beds) range from MUR 40,000, townhouses from MUR 65,000 and houses/villas from MUR 90,000 to MUR 150,000 upwards.
Landlords in the rental market are often faced with the challenge of securing quality tenants, and maintaining the property's value. Overcoming this starts with thorough tenant screening, and presenting the property professionally while remaining responsive to tenant needs, says Severine. Tenants should also be aware that due to the limited quality properties, there is high competition. To overcome this they should act quickly with prepared documents, engage a reputable agent for new listings, be realistic about their budget, and carefully review their lease.
Generally, foreign buyers are often faced with the challenge of having to navigate the vast choice of properties and off-plan developments, which can lead to confusion and poor advice. She says this is where a reputable property agency such as Seeff Mauritius with more than 20-years of experience on the island, becomes an invaluable partner. Seeff can provide expert guidance to ensure clients purchase the right property in the right region, making their investment safe for years to come.
For more information, visit https://seeff.mu/.
