Foreign Demand sees market rebound

Mauritius saw demand halt in the wake of border closures throughout 2020/21 with supply far outstripping demand. During this period the market remained quite resilient with sale prices not moving while homeowners waited out this period.

Interestingly, Mauritius has a high ratio of property liquidity compared to many other countries with banks generally requiring a minimum of 30-40% LTV, which indirectly acts as a protection mechanism in down cycles easing the burden on mortgaged properties and land parcels. Only recently have financial institutions been gearing up to offer higher loan values to local citizens in an attempt to re-ignite the market with easier accessibility.

The last quarter of 2021 saw the property market strongly rebound. Pending sale transactions were concluded while previous rental prices that were steeply discounted, often towards 40% less than asking, have now normalized with demand from foreign visitors returning to our shores.

There was a 20% increase in inquiries registered (PropertyCloud data extract) during Q4 2021. Although supply chain disruptions continue to cause delays in the transfer process for the acquisition of property - the overall outlook remains highly positive heading into the new year.

Mauritius has a unique real estate set-up - a market that runs in ‘two parallels’. Foreigners are only eligible to acquire property in approved projects and designated schemes, mostly in the mid-to-high luxury segment. Whereas Mauritian citizens are free to acquire all types of immovable properties.

2022 promises to be a buyers market with a slight oversupply of products; with new projects once again coming onto the market, there will be great value available. With the pent up demand however from key markets, the anticipate is for this to change as the year progresses