If you are planning a residential build in Mauritius, the numbers are moving against you. The Construction Price Index published by Statistics Mauritius hit 145.5 in June 2025, up from 141.6 six months earlier. That is a 2.8% jump in half a year and a 5.9% rise year-on-year, well above general inflation. Construction costs are now a front-line concern for every household and developer on the island.
Labour Is the Big Story
Labour accounts for 24.1% of the index and surged around 13.8% year-on-year through the second quarter. It is the single most persistent cost driver in the market right now. Materials, at 68.6% of the index, compound the problem. Cement, aluminium openings, and premixed mortar have all trended upward since mid-2024, showing no signs of relief.
The Winners and Losers
Cement spiked 5.0% in May alone. Aluminium doors and windows, weighted at 13.3% of the index, rose 8.0% year-on-year. Formwork climbed about 9.2% over the past year, one of the sharpest sustained increases across all categories. Steel bars are the exception , down 3.5% in May and 3.7% lower year-on-year. For those timing their procurement carefully, steel offers a genuine short-term saving on structural costs.
What This Means on Site
A project budgeted at Rs 3.0 million can realistically reach Rs 3.2 million within twelve months at current rates. Families are already responding- phasing construction, trimming finishes, reducing floor area. For developers locked into fixed-price contracts, margin erosion is no longer theoretical. Cost-escalation clauses indexed to the official CPI should now be standard practice, not an afterthought.
Since 2018, the index has risen 45.5% from its base of 100. The trajectory is clear. Smart procurement, phased purchasing, and contract indexing are no longer optional, they are how you protect a build budget in today's Mauritius.
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