Mauritius is a popular luxury destination that continues to attract a large amount of foreign direct investment (FDI) as a result of a thriving real estate sector.
Mauritius is ideal for foreigners who wish to settle, work, retire or invest in property in a pleasant and secure environment, while enjoying the benefits of an island lifestyle. Foreign investors are also attracted by the Mauritian tax system and favourable regulations in the real estate sector. Since the government’s new measures for foreign buyers, about 85 residential projects have been approved under the RES property plan, a dozen under the IRS, 52 projects under the PDS and 12 under the Smart City. Tourism has also fostered the growth of a luxury rental market, with beachfront villas and properties located near popular beach areas.
It is noted that the majority of luxury property buyers are foreigners and only a very small percentage seek bank finance. Consequently, the rise in interest rates does not affect the property market to any great extent, which is a significant advantage for the Mauritian market. The acquisition of a property on the island is considered a safe option to diversify one’s investment portfolio, which explains this trend.
In terms of geographical location, the most sought-after areas in 2023 are likely to be Grand Bay, Tamarin and the southwest of the island. Grand Bay is a well-known tourist area, offering many amenities and lively nightlife. Tamarin is a growing area, with new real estate developments and proximity to the west coast beaches. The southwest of the island is a growing area, with large-scale real estate projects underway and new roads being built to facilitate access.
Overall, in 2023, the Mauritian real estate market is expected to continue to attract many foreign investors due to its economic and political stability, as well as its favourable tax and regulatory environment. The Mauritian government has also announced new measures to facilitate residence permit procedures for foreigners.