Tracking Trends: Residential, Commercial, and Retail Dynamics in Mauritius Real Estate Market

Admin January 17, 2025

There are over Rs 300 billion in real estate projects currently under construction or in the pipeline. Residential property prices are up 22% year-on-year based on the RPPI, FDI into real estate activities is up 26% year-on-year, and sales in approved foreigner schemes achieved another record during the past year - of which Mauritian citizens now account for 9% of the buyer persona. So where does it go from here?

Residential

The residential sector has performed extremely well, considering Mauritius has a unique ‘parallel’ real estate market - of the foreigner and local citizen market. The demand for already-built properties has risen, overtaking off-plan sales as buyers seek immediate occupancy. This shift has bolstered property values across the island. EDB Mauritius indicates there is an overall supply pool of more than 7,800 units from approved residential projects which includes Smart City developers. From this figure 5,396 have been sold - indicating a remaining pool of just under 2,500 units either vacant or currently under construction. 

Mauritian citizens have been the benefactors of new ‘Morcellement projects’ consisting of serviced land parcels in master planned communities where demand has outpaced supply - with most projects selling out within weeks. Based on available data points, although supply has increased - demand from buyers has remained, coupled with a consistent appreciation of capital growth. 

Commercial

The commercial sector has seen immense expansion over the past decade. Much of the development strategy has focused on de-urbanisation and the creation of ‘new hubs’ such as Ebene Cybercity and Vivea Business Parks to much success. Buildings have been constructed, and corporations have occupied them. But this trend seems to be changing with saturation levels reaching all-time highs. As of mid-2024 the total stock of office buildings is at over 1 million square meters, an additional 95,000m2 is estimated to come onto the market by June 2025 - indicating an additional 8% to current supply figures. Forecasts indicate total stock (with an index of 126.00) exceeds occupied stock (index of 117.5). In terms of occupancy, current levels are estimated at 94% occupancy for Grade A offices and 78% split between Grades B and C. There is a widening divide between available supply and demand which could lead to underperforming buildings and/or adjustment of prices to realign with market expectations. 

Retail

Retail spaces in Mauritius embody a captivating mix of cultural diversity, commercial vibrancy and modern amenities. The country now offers a diverse array of retail spaces that has evolved dramatically over the past 2 decades - now boasting a total of 25 shopping malls, split between 4 destination malls and 21 main regional malls - with around 84% of the population visiting a shopping mall during the month. In terms of super/hypermarkets, there is a grand total of 141 centers located around Mauritius. Continuous upgrades and innovations in terms of offerings have satisfied the appeal to consumer demands.

As a small island, Mauritius has developed into a burgeoning hub of real estate activity, not only in satisfying local consumers in terms of variety but also in terms of attractive government policies aimed at enabling home ownership to stimulate this growth. The country continues to attract significant forms of foreign direct investment that, in current market conditions, are enabling the continuous upward cycle of growth.

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