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The Bank of Mauritius recently lowered the Key Rate (KR) from 4.50% to 4.00%. This decision reflects a strong economy and falling inflation, creating a positive outlook for real estate in Mauritius.
Strong economic growth
The International Monetary Fund (IMF) has projected global growth at 3.2% for 2024. In Mauritius, GDP grew by 6.4% in the first quarter, driven by strong consumer spending and investment. The tourism sector is thriving, and major construction projects are underway, making Mauritius a prime location for property investment.
Decreasing inflation
Inflation has dropped significantly, from 11.3% in February 2023 to 4.0% in August 2024. This trend is expected to continue, making housing more affordable and stimulating market activity. A stable inflation rate within the target range of 2-5% makes housing more affordable and encourages market activity.
Key rate and real estate
The cut in interest rate means lower borrowing costs for buyers and investors, making mortgages more accessible. As banks lower their lending rates, we can expect an increase in housing demand, boosting the real estate market.
The Bank of Mauritius’ decision to cut the Key rate is a positive sign for the real estate sector. With strong economic growth, decreasing inflation, and lower borrowing costs, now is a great time to explore property investment in Mauritius.
