Mauritius continues to stand out as an attractive destination for real estate investors. The year 2024 has seen significant developments, and the outlook for 2025 is equally promising. The country positions itself as an appealing hub due to its political stability and tax benefits, while also meeting emerging trends such as sustainability and the demand for luxury properties. However, this momentum is accompanied by key challenges, notably in terms of financial accessibility and construction costs. In this blog, we will review the 2024 real estate market performance and provide an outlook for 2025.
2024 Market Overview
The year 2024 saw positive and sustained dynamics in the Mauritian real estate market. According to the latest “Property Highlights” report from the Economic Development Board, 2022 and 2023 experienced notable growth, with a combined sales volume of Rs 44 billion, highlighting the ongoing appeal of the market. Sales during this period set records, reaching Rs 14 billion in 2022 and Rs 23 billion in 2023. Based on these trends, it was anticipated that the 6,000th property sale would occur in 2024, marking a significant milestone in the growth of the Mauritian real estate sector.
Economic and Political Context for Mauritius in 2025
The Mauritian real estate market is closely linked to the health of the country’s economy. In 2025, Mauritius is expected to maintain stable economic growth, with GDP growth forecasts around 4 to 5% per year. This economic dynamism, coupled with a pro-investment policy, should continue to drive demand for both residential and commercial properties.
The Mauritian government has implemented various reforms to stimulate real estate investment. Favorable tax policies, particularly the ability for foreigners to acquire property through the IRS (Integrated Resort Scheme), RES (Real Estate Scheme), and PDS (Property Development Scheme) programs, remain key drivers of the market. Additionally, infrastructure projects such as the development of special economic zones and improvements to transport networks will enhance the island’s attractiveness.
Key Factors Shaping the Market in 2025
Mauritius remains a haven for foreign investors, particularly due to its attractive fiscal programs, residency benefits, and status as an offshore financial hub. The country’s welcoming policy towards expatriates, combined with property acquisition schemes, continues to attract international clients, especially from Europe, Asia, and Africa.
In 2025, we can expect this demand to strengthen, driven by the search for secure and tax-friendly destinations.
New Housing Expectations
The emergence of new consumer expectations, especially in the housing sector, is a major factor shaping the future of the real estate market. Both Mauritians and expatriates are increasingly seeking eco-friendly homes, equipped with smart technologies and optimized energy performance. The development of sustainable homes, incorporating solar panels, rainwater harvesting systems, and durable materials, is expected to meet these growing demands.
Moreover, the pandemic has changed how people live and work, further boosting the demand for homes that offer dedicated workspaces, enhanced connectivity, and a pleasant living environment.
Anticipated Challenges
Rising Construction Costs
Like elsewhere, the Mauritian real estate sector may face rising construction costs. Global inflation, increasing material prices, and a shortage of skilled labor could slow down some real estate projects. Investors will need to anticipate these potential increases and adjust their strategies accordingly.
Environmental Risks
Mauritius, like other islands in the Indian Ocean, is vulnerable to the effects of climate change, such as coastal erosion and extreme weather events. The environmental impact of certain real estate projects could become a key consideration for developers, especially those investing in coastal areas.
Outlook for 2025
Looking ahead to 2025, the real estate market in Mauritius presents a promising outlook, supported by a growing economy, a pro-investor policy, and sustained demand across various sectors. However, challenges remain, including rising construction costs and environmental risks. That said, informed investors who are ready to adapt to new trends will find plenty of opportunities in this dynamic market. For those looking to explore further, it is recommended to consult a local real estate expert and carefully assess projects in line with upcoming trends.
