Residential property prices in Mauritius have maintained their upward trajectory.

This extended overview from the Global Property Guide covers key aspects of the Mauritus housing market and takes a closer look at its most recent developments and long-term trends.

Table of Contents

• Housing Market Snapshot
• Demand Highlights
• Supply Highlights
• Rental Market
• Mortgage Market
• Socio-Economic Context

Housing Market Snapshot

According to the latest figures released by Statistics Mauritius, the Residential Property Price Index (RPPI) recorded a substantial year-on-year increase of 27.19% in the third quarter of 2024, or 21.10% when adjusted for inflation. "Robust demand for residential properties was bolstered by conducive macro-financial conditions for real estate investment," commented the Bank of Mauritius (BoM), further noting that the risk of a sharp correction in residential property prices remains low, supported by favorable financial conditions and positive economic outlook.

Mauritius house price annual change:

Propertycloud.mu, the country's leading real estate platform, reported that the average listing price for apartments for sale in Mauritius reached MUR 21,667,972 (USD 457,197) in 2024, reflecting a 23.3% increase compared to the previous year. The average listing price for houses stood at MUR 28,548,780 (USD 602,383), marking a 16.8% year-on-year rise. Geographically, the Eastern region registered the highest average listing prices at MUR 29,492,000 (USD 622,285) for apartments and MUR 74,654,378 (USD 1,575,218) for houses. In contrast, the Central region was identified as the most affordable area.

Average for-sale listing price by region:

Mauritius operates a dual real estate market where local citizens are permitted to purchase property freely throughout the island, while foreign buyers are restricted to designated schemes approved by the Economic Development Board (EDB). Data from Propertycloud.mu shows that the average listing price for properties available to foreign buyers - including apartments, houses, commercial properties, and land - reached MUR 30,573,772 (USD 645,111) in 2024, reflecting a 15.4% annual increase. Meanwhile, properties listed exclusively for Mauritian citizens were recorded at an average of MUR 15,000,000 (USD 316,502), more than twice as low yet demonstrating a comparable annual growth rate of 15.0%.

Data Source: Propertycloud.mu.

"The residential sector has performed extremely well, considering Mauritius has a unique 'parallel' real estate market <…> The demand for already-built properties has risen, overtaking off-plan sales as buyers seek immediate occupancy. This shift has bolstered property values across the island," noted experts from Propertycloud.mu. They added that, based on available data, while supply has increased, buyer demand has remained resilient, with steady capital appreciation maintaining upward pressure on prices.

Demand Highlights:

Government Investment Schemes Fuel Foreign Demand

The demand for housing in Mauritius has been rising steadily, particularly since the pandemic, as the island continues to attract both local and international buyers. This sustained interest is underpinned by a stable political environment, a favorable tax regime, a high quality of life, and well-structured government policies designed to promote real estate investment.

To facilitate foreign investment in high-end residential properties, the government has established several structured real estate investment schemes, in most cases with the possibility of obtaining a residence permit (under the condition that the amount invested exceeds USD 375,000). These include the Property Development Scheme (PDS), Integrated Resort Scheme (IRS), Real Estate Scheme (RES), Smart City Scheme (SCS), and Ground +2 (G+2) Scheme, each with specific eligibility criteria and regulatory requirements. A dedicated retirement option under the PDS further provides a pathway for retirees seeking residency through property investment. Additionally, the Invest Hotel Scheme (IHS) enables foreign ownership of hotel units. These initiatives are regulated by the EDB through specific provisions under the EDB Act or amendments to the NCPR Act.

A comprehensive analysis by the EDB recorded a total of 5,396 dwellings sold under these residential schemes from the inception of the initiative in 2005 through the latest reporting period in 2023. Recent data indicates that 646 dwellings were sold in 2023 alone, reflecting a 21.43% year-on-year growth. Based on this ongoing trend, the EDB estimates that the 6,000th sale occurred during 2024.

The RES scheme, which allows foreigners to acquire properties without a minimum investment threshold, accounted for the highest share of transactions at 33%, closely followed by the IRS scheme at 31%, which primarily targets luxury properties within resorts or gated communities offering premium amenities.

In terms of geographical distribution, the North region, including Rivière du Rempart and Pamplemousses, and the West region, including Black River, emerged as the most sought-after locations, accounting for 51% and 27% of the total sales, respectively.

Buyer demographics are dominated by foreigners, with the top 10 nationalities representing 90% of all transactions. French buyers lead the segment, accounting for 42% of total foreign purchases, followed by South Africans (22%) and British nationals (7%). Mauritian buyers, by contrast, represent only 9% of all residential scheme acquisitions.

Regarding ownership structures, 69% of buyers acquired property individually or jointly with a spouse or partner. The remaining 31% opted for alternative ownership structures, with domestic companies being the most common choice, followed by civil partnerships (Société Civile). Additionally, acquisitions through trusts have gained traction since the pandemic, reflecting evolving investment strategies among buyers.

Data Source: EDB.

Supply Highlights:

Insights Into Mauritius's Housing Stock

According to the latest Housing and Population Census conducted in 2022, the total residential housing stock in Mauritius reached 410,221 dwellings, representing a 14.3% increase compared to the previous Census in 2011. Of these, 86.1% were occupied, a decrease from 92.2% in 2011, while 13.9% were recorded as vacant. Among the occupied units, 99% served as principal residences, with the remaining 1% classified as secondary residences.

The latest data on residential construction activity provided by Statistics Mauritius indicates that a total of 6,657 residential building permits were issued in 2023 for both new constructions and expansions, reflecting a 16.48% year-on-year decline. At the same time, the total approved residential development area increased by 21.86% to 1.81 million square meters, suggesting a trend toward larger-scale residential projects.

Data Source: Statistics Mauritius.

Investment in the sector remains strong, as evidenced by the growth in Gross Fixed Capital Formation for residential construction. During the first three quarters of 2023, investment in residential buildings reached MUR 37.25 billion (USD 800 million), marking a 29.22% increase compared to the corresponding period in the previous year. This rise is partly attributed to increased spending on social housing under the 12,000 Housing Units Project announced by the Mauritian government in its June 2020 budget speech. The initiative is being implemented in two phases, with Phase I comprising 8,000 units developed on a design-and-build basis across 39 sites for eligible households, while Phase II will deliver an additional 4,000 units.

The segment of approved residential schemes available to foreign buyers saw a total of 183 projects approved from the inception of the program until the end of 2023, according to the EDB data. Of these, 103 projects have been completed and delivered, while 80 remain under development. The geographic distribution is uneven, with the northern districts of Rivière du Rempart and Pamplemousses accounting for the highest stock allocation, followed closely by the western coastal region of Black River. Within these schemes, the total supply stands at more than 7,800 units. With 5,396 units sold, approximately 2,400 units remain either vacant or under construction.

Housing projects approved under the residential schemes by district:

Rental Market:

Resurging Tourism Sustains Demand for Rentals

While the resurgence of tourism in Mauritius, which now annually attracts nearly 1.4 million visitors to the island, fuels the demand for holiday properties in the popular North, West, and East coastal regions (especially near beaches, golf courses, or nature reserves), the domestic rental market appears to be shrinking.

According to the population and housing census data published by Statistics Mauritius, as of 2022, only 6.5% of resident households were paying tenants or sub-tenants, down from nearly 8.0% reported a decade prior in 2011. At the same time, the share of homeowners increased from 88.8% in 2011 to 90.5% in 2022.

In parallel, the reporting from the real estate platform Propertycloud.mu indicates that rents for residential and commercial properties available to foreigners have been growing faster, demonstrating an 18.8% increase in 2024 against 16.0% reported for properties designated for the local market only.

Within the residential sector, based on properties listed on Propertycloud.mu, the long-term apartment rents showed more substantial growth in 2024 (28.6% year-on-year) than house rents (14.3% year-on-year). The most viewed areas within the last 12 months included Grand Baie and Black River.

More recently, the research conducted by Global Property Guide in February 2025 shows the average monthly rent in Mauritius standing at USD 534 for 1-bedroom units, USD 747 for 2-bedroom units, USD 1,174 for 3-bedroom units, and USD 2,987 for larger units with 4 bedrooms or more. The corresponding gross rental yields averaged 3.52%.

This figure is in line with the assessment from Sotheby's International Realty Mauritius, which estimates that long-term rental properties on the island typically generate returns of 3-5%, and short-term rentals offer the potential for higher returns, varying between 5% and 9%.

In the short-term rental segment (STR), as of April 2025, the data from AirDNA shows the largest number of active short-term rental listings in the districts of Black River (Rivière Noire), Rivière du Rempart, and Pamplemousses. Among the more active local submarkets (with 100 or more active listings), the highest average daily rates, exceeding USD 200, are reported in Grand Port and Flack. Occupancy for short-term rentals is highly seasonal, fluctuating from 76% in March to 41% in September and averaging between 47% and 58% in the last twelve months across the popular submarkets.

Key short-term rental indicators across selected submarkets as of April 2025:

Mortgage Market:

First Key Rate Hike in Over Two Years and Growing Loan Stock

In February 2025, the Bank of Mauritius (BoM) raised its key rate by 50 b.p. to the current standing of 4.50% in the first monetary policy meeting under the new governor. This first hike in over two years was the regulator's reaction to evolving global financial dynamics. "We want to make sure that inflation expectations are solidly anchored and exchange rate pressures contained in Mauritius," said BoM Governor Rama Krishna Sithanen in a press statement.

While the statistical reporting on the Mauritian banks' weighted average lending rate for the last two months is not available yet, the indicator has been following the monetary policy trend and will likely be impacted by the upward shift. Most recently, the BoM reported the average lending rate on rupee loans at 6.48% in January 2025, 2.48 p.p. above the policy rate. Prime lending rates of banks, which typically serve as a reference for individual loan products, ranged from 6.25% to 9.00%.

At the same time, the banks' interest rates on new housing loans to households, reported by the BoM as a range, spanned from 2.50% to 13.75% as of January 2025. The lower end of the range has been relatively stable in recent years, fluctuating around 2%, while the upper end experienced more pronounced shifts and has generally declined in the last two years from 16.60% observed in January 2023 and 14.25% in January 2024.

According to a market overview from the Centre for Affordable Housing Finance in Africa (CAHF), an independent think tank working to support and grow housing markets in the region, interest rates on housing loans in Mauritius vary based on the age and income of the borrower and the mortgage repayment period, with the banks using their own criteria to assess applicants.

At the time of research in April 2024, Mauritius Commercial Bank (MCB), the largest domestic lender, advertised home loans at interest rates between 5.05% and 6.9%.

Data Source: BoM.

To assist those affected by elevated interest rates, the Government of Mauritius had previously introduced the Home Loan Payment Scheme, which offered eligible citizens a 5% refund on the amount borrowed under a secured housing loan, up to a maximum of MUR 500,000. In the 2024-2025 budget, the scheme was extended for another year and is now available through the end of June 2025.

In general, Mauritius has the highest level of mortgage penetration among its regional peers in the Southern African Development Community, according to the CAHF analysis. The 2022 Census data shows that 14.0% of privately owned housing units in the country are mortgaged, up from 12.4% previously reported in 2011.

The total value of outstanding housing loans maintained by the deposit-taking institutions in Mauritius has been expanding consistently, with an average annual growth of 10% in the last six years. As of January 2025, the total housing loan stock reported by the BoM reached MUR 144.6 billion (USD 3.06 billion), of which MUR 125.9 billion (USD 2.7 billion) was credit extended by banks and MUR 18.7 billion (USD 396 million) was credit extended by non-bank deposit-taking institutions, such as Mauritius Housing Company. Loans in domestic currency made up 99.3% of the total value, while loans in foreign currencies represented only 0.7%.

The relative size of the market has also increased in recent years, expanding from 16.3% of GDP in 2018 to the estimated 20.6% of GDP at current prices in 2024.

Data Source: BoM.

Socio-Economic Context:

Growth Momentum Driven by Investment and Tourism, Upside Risks to Inflation

The Mauritian economy has rebounded since 2020 on the back of recovering tourism, social housing construction, and financial services, with the overall output now exceeding its pre-pandemic levels. Real GDP growth remains strong, having moderated, however, from 8.9% in 2022 to 7.0% in 2023 and 6.1% in 2024, according to the International Monetary Fund (IMF) figures, with further slowdown to 4% projected for 2025.

A recent economic outlook from the Organization for Economic Co-operation and Development (OECD) expects this positive macroeconomic dynamic to continue: "Growth will be driven primarily by robust investment in infrastructure and housing, alongside continued strength in the tourism sector, which is expected to surpass pre-pandemic levels in visitor numbers and spending."

Consumer Price Index (CPI) inflation in the country eased significantly from 10.8% in 2022 to 7.0% in 2023 and 3.5% in 2024 and was most recently reported by Statistics Mauritius at 2.8% in February 2025. The IMF forecast currently sees the annual inflation in the country at 3.5% in 2025. At the same time, risks to inflation are on the upside as the economy has been growing above potential for some time. Externally, the latest geopolitical developments, including new tariffs introduced by the US, threaten to rekindle global inflation and create additional pressures for the small Mauritian economy, which imports the bulk of what it consumes. These considerations recently prompted the BoM to make a proactive decision to raise its key rate.

Data Source: IMF.

The tourism industry, which serves as one of the key drivers of the country's economy, has fully recovered, with the annual number of arrivals reported by Statistics Mauritius in 2024 (1.38 million) reaching the pre-pandemic 2019 benchmark and remaining only 1.2% below the 2018 peak level. The corresponding gross tourism earnings increased by 8.8% year-on-year in 2024 and reached MUR 93.6 billion (USD 2.01 billion).

Key markets of origin, together representing nearly 70% of all international arrivals in 2024, are France (24.6% of tourist arrivals), the UK (11.4%), Reunion Island (10.2%), Germany (9.0%), South Africa (7.7%), India (4.1%), and Switzerland (2.6%).

Data Sources: BoM, Statistics Mauritius.

Against this background, labor market conditions in the country have improved significantly, with the unemployment rate dropping to the lowest level in 25 years, according to the IMF assessment: from 9.1% in 2021 to 6.3% in 2024, with the latest figures from Statistics Mauritius showing unemployment for the population aged 16 and over at 5.8% in Q4 2024.

At the same time, longstanding issues of skill mismatches and limited female participation in the domestic labor market persist, leading to an estimated shortfall of 50,000 workers nationwide. "Labor shortages are increasingly limiting the growth of key sectors, particularly tourism, construction, and ICT," notes the OECD economic outlook.

Data Source: IMF.

The overall outlook for the Mauritian economy is favorable, with a steady expansion expected to gradually converge to long-term potential. Both the IMF and the OECD assessments, however, point out downside risks, including deterioration in global growth, higher-than-anticipated fuel and food prices, and extreme climate events.

"Looking ahead, securing a sustainable and resilient economy presents challenges: fiscal and external buffers were eroded during the pandemic, and vulnerabilities to climate change and an aging population loom over longer term economic prospects," noted the IMF in their most recent Article IV staff report.

Sources:

1. Statistics Mauritius
   1. Housing and Population Census 2022: https://statsmauritius.govmu.org/
   2. Residential Property Price Index (RPPI): https://statsmauritius.govmu.org/
   3. Building and Construction Statistics: https://statsmauritius.govmu.org/
   4. National Accounts: https://statsmauritius.govmu.org/
   5. Consumer Price Index: https://statsmauritius.govmu.org/
   6. Labor: https://statsmauritius.govmu.org/
   7. International Travel & Tourism: https://statsmauritius.govmu.org/
2. Bank of Mauritius (BoM)
   1. Key Rate: https://www.bom.mu/
   2. The Monetary Policy Committee of the Bank of Mauritius Raises the Key Rate by 50 Basis Points: https://www.bom.mu/
   3. Post MPC Meeting Press Conference: Statement by the Governor: https://www.bom.mu/
   4. Banks' Credit to Private Sector: https://www.bom.mu/
   5. Monthly Statistical Bulletin: https://www.bom.mu/
   6. Financial Stability Report, December 2024: https://www.bom.mu/
3. Ministry of Finance, Economic Planning and Development
   1. Budget 2024-2025: https://nationalbudget2024.govmu.org/
4. Economic Development Board of Mauritius (EDB)
   1. Residency: Acquire a Property in Mauritius: https://residency.mu/
   2. Highlights of the Property Market in Mauritius. EDB Insights - June 2024: https://edbmauritius.org/
   3. Budget Speech 2020-2021. Our New Normal: The Economy of Life: https://edbmauritius.org/
5. International Monetary Fund (IMF)
   1. Country Overview: Mauritius: https://www.imf.org/
   2. 2024 Article IV Staff Report: https://www.imf.org/
6. Organization for Economic Co-operation and Development (OECD)
   1. OECD Economic Outlook, Volume 2024 Issue 2: Mauritius: https://www.oecd.org/
7. Centre for Affordable Housing Finance in Africa (CAHF)
   1. Housing Finance in Mauritius: https://housingfinanceafrica.org/
   2. Housing Investment Landscape, Mauritius: https://housingfinanceafrica.org/
8. Mauritius Commerical Bank (MCB)
   1. Statement of Principal Interest Rates and Service Charges for Domestic Operations: https://mcb.mu/
9. Propertycloud.mu
   1. Market Insights: https://www.propertycloud.mu/
   2. Mauritius Real Estate Index: https://www.propertycloud.mu/
   3. Tracking Trends: Residential, Commercial, and Retail Dynamics in Mauritius Real Estate Market: https://www.propertycloud.mu/
10. AirDNA
    1. Short-Term Rental Markets: Mauritius: https://app.airdna.co/
11. Sotheby's International Realty Mauritius
    1. Investing in Mauritius: Buy a Holiday Home and Earn Rental Income: https://www.sothebysrealty.mu/
12. KPMG
    1. Mauritius Budget Highlights 2024-2025: https://assets.kpmg.com/
13. Bloomberg
    1. Mauritius Hikes Rate to 4.5% in First Meeting Under New Governor: https://www.bloomberg.com/