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While the new government cautions against over-reliance on real estate as our economic cornerstone, the luxury property sector continues to thrive despite this potential slowdown. As latest report reveals, the market has successfully expanded beyond its original retirement-focused niche, with high-end developments attracting diverse international buyers alongside emerging mid-market segments like GR+2 apartments.
"The market has maintained impressive momentum," shares my friend Ashwin, a local property consultant. He points to developments along the coastline, explaining how prices in prime locations like Grand Baie, Pereybère, and Tamarin saw increases exceeding 7% last year—remarkable in today's global economic climate.
If you have recently taken a walk along the sun-drenched shores of Grand Baie, you wouldn't help noticing construction cranes dotting the skyline – testament to the market's remarkable resilience. Since 2005, Mauritius has sold over 5,300 luxury properties, with total values soaring past Rs 156 billion.
What's driving this impressive growth trajectory? It's not just our pristine beaches and year-round sunshine. Mauritius has crafted an irresistible cocktail of economic stability, favorable tax policies, and accessible residency programs. With no capital gains tax, no inheritance tax, and a flat income tax rate of just 15%, investors quickly do the math and like what they see.
The government's ongoing infrastructure investments are adding fuel to this already blazing market. With Rs 57 billion allocated to roads, water treatment facilities, and transportation improvements in the 2024/25 budget, property values in affected areas are seeing substantial lifts. First-time local buyers aren't being left behind either, with home ownership schemes offering 5% refunds on housing loans and property costs extended through June 2025.
Mauritius is positioned to achieve a significant milestone in its real estate sector, with projections indicating the overall market will reach USD 24.35 billion by end 2025. This impressive figure reflects the island nation’s growing prominence as an investment destination, with the residential sector expected to lead this growth at USD 14.45 billion for the same period. Meanwhile, commercial real estate is expanding its footprint, with office space expected to increase by 8% next year as international businesses in finance, IT, and tourism maintain their appetite for Grade A offices.
For those concerned about sustainability, there's good news too. Developers are increasingly embracing eco-conscious practices, incorporating solar panels, rainwater harvesting systems, and energy-efficient designs. Properties exceeding 5 arpents must now allocate 4% of land for green forests with endemic trees.
