Rental investment in Mauritius: a fresh perspective on island property

Mauritius may be known for its beaches, but savvy investors are now paying attention to its bricks and mortar. Beyond its sun-drenched coastline, the island’s maturing property market offers stability, lifestyle benefits, and robust long-term returns. As governments elsewhere tighten regulations and markets cool under economic pressure, rental investment in Mauritius has emerged as a dynamic alternative, especially for those seeking access to a tropical home that works for them, rather than only costing them.

Mauritius’s property market is underpinned by more than its natural beauty. Political stability, a secure banking system, and investor-friendly legislation give the island a competitive edge in the region. Property developments eligible for foreign ownership are meticulously planned, built to high standards and typically come with access to a wide range of amenities, professional rental management, and the potential for permanent residency.

Mauritius also benefits from tax advantages, including no capital gains tax and low-income tax. Add to this its strategic location between Asia and Africa, and it’s easy to see why the island is gaining ground as a preferred destination for rental investment.

Spotlight on the West Coast

Those who venture west will find more than just postcard sunsets. The West of Mauritius has become one of the island’s most exciting regions for property investment. Known for its spectacular lagoon views and proximity to both nature reserves and modern conveniences, this side of the island offers a lifestyle that blends outdoor adventure with urban comfort.

Sunset Cove is a good example of how The West is evolving in terms of residential appeal. Tucked between the mountains and the sea, the project offers contemporary apartments designed to maximise natural light and cross-ventilation, while blending into the surrounding landscape. The development also features shared spaces like rooftop lounges and a swimming pool – amenities that elevate the rental experience and increase appeal for long-term tenants and holidaymakers.

Investors looking for a return on investment in Mauritius often appreciate the West Coast’s appeal to a wide demographic – young professionals, expats, and families alike. The area is also home to several international schools and business parks, which helps reduce seasonality in rental demand. For those planning to stay part of the year and rent out the rest, The West offers enough infrastructure and charm to make both options attractive.

Northern exposure

Further up the coast, the north of Mauritius has long been the epicentre of activity for foreign buyers. The North Coast offers a more cosmopolitan vibe – an established hub of restaurants, shopping centres, beach clubs, and nightlife. Here, communities like Grand Baie and Pereybere are already well known, but what makes the region compelling for rental investment is its proven track record.

Pierre & Vacances stands out among recent developments in The North. With its blend of resort-style living and private ownership, the project bridges the gap between investment property and vacation retreat. It also benefits from being part of a larger hospitality group, providing access to a rental pool that helps ensure high occupancy rates and professional property management. Pierre & Vacances was founded in 1967 by Gérard Brémond and is a leading European provider of tourism services and property development. The company operates a diverse portfolio of holiday residences, villages, and hotels across Europe, including France, Spain, Italy, and Germany, offering self-catering accommodations in popular seaside, mountain, countryside, and city-centre destinations.

What makes investment for rental returns in Mauritius particularly appealing in the north is the area’s year-round popularity. While the West Coast is prized for its tranquil beaches and nature-focused lifestyle, the North Coast offers constant movement, ideal for consistent rental income. The established infrastructure also reduces the risk factor, as services and amenities are already in place to support high-volume tourism and residential living.

What to expect as a property investor in Mauritius

Purchasing property in Mauritius under one of the official schemes allows foreign buyers to secure full ownership of a freehold property, which is not always the case in other island destinations such as Bali and the Seychelles.

In Indonesia, including Bali, foreigners are prohibited from owning freehold land (Hak Milik). Instead, they can acquire property through:

• Leasehold agreements: Typically lasting 25–30 years, with options to extend.
• Right to use (Hak Pakai): Allows usage of a property for a set period, often up to 80 years, but with specific conditions.
• Right to build (Hak Guna Bangunan): Available through establishing a foreign-owned company (PT PMA), permitting building on leased land for up to 80 years.

These alternatives do not confer full ownership and come with regulatory complexities.

Meanwhile, in Seychelles, non-citizens can purchase freehold property, but it requires obtaining official permission from the government, specifically the Seychelles Investment Board (SIB). The process involves:

• Application for sanction: Foreigners must apply for and receive a sanction under the Immovable Property (Transfer Restriction) Act.
• Property usage: The property is typically intended for residential purposes, and commercial use may have additional restrictions.
• Fees and conditions: There are applicable fees, and the government may impose conditions on the property’s use.

While freehold ownership is possible, the process is regulated and subject to government approval.

However, in Mauritius, for a minimum investment (currently USD 375,000), buyers have the added benefit of obtaining permanent residency, which extends to their immediate family. This is a significant draw for relocating or securing a long-term base abroad.

The rental yields on the island can be healthy, particularly when properties are managed efficiently and marketed through the proper channels. Short-term holiday rentals often generate higher returns, particularly in high-traffic regions like the West and North Coast. In contrast, long-term rentals offer more predictability, common in the Black River area, where many expat families and professionals settle.

Unlike some other international markets, buying property to rent in Mauritius doesn’t require navigating a maze of red tape. The process is straightforward and transparent, and many developers work closely with legal and financial advisors to ensure that foreign buyers understand every step. From securing your title deed to setting up a local bank account for rental income, the path is well paved. The government has a sophisticated online platform to facilitate digital submissions of applications. That means all paperwork is handled online without applicants being physically on the island.

Rental investment Mauritius: more than diversification

Rental investment in Mauritius isn’t just about diversifying your portfolio – it’s about investing in lifestyle, resilience, and opportunity. Whether you’re drawn to the untamed beauty of the West Coast or the vibrant energy of the North Coast, there’s a project to suit your needs and a market ready to welcome you.

This is a destination where real estate is more than a transaction. It’s a commitment to quality of life, a strategic move in uncertain times, and perhaps most importantly, a place where your property can start working for you.

Investing in property in Mauritius is not only about owning a slice of paradise but also about maximising returns when you’re not in residence. 2Futures simplifies this through its dedicated rental management arm, 2Futures Holidays, which is the exclusive provider for short- and long-term rental services across most of its developments.

2Futures Holidays handles every aspect of property management, including marketing, guest relations, housekeeping, maintenance, and administrative support. This ensures that your property is well-maintained and marketed at its true value, providing peace of mind and optimal rental returns.

For developments partnered with international hospitality brands, rental management is handled by the respective brand’s management team. For instance, the résidence premium Pierre & Vacances Île Maurice is managed by Pierre & Vacances, leveraging their extensive experience in tourism and accommodation.

In the case of The Essence, located in Trou aux Biches, rental management is entrusted to Alizée Resort Management, a seasoned company with 40 years of experience. They offer comprehensive services, including personalised guest welcomes, daily housekeeping, maintenance, and marketing through The Essence’s dedicated booking platform. Depending on the unit type, owners can expect indicative gross rental yields ranging from 4.34% to 6.83%. Meanwhile, at Sunset Cove, two-bedroom units yield 5.2%, 3-bedroom units 5.4%, and luxurious penthouses offer returns of 6.2%. For the résidence premium Pierre & Vacances Île Maurice, projections are as seen on the image below.

Rest assured that these projections are calculated with care and not exaggerated.

Owners also have the flexibility to establish their own rental management company, provided it complies with local regulations. However, partnering with established entities like 2Futures Holidays or Alizée Resort Management ensures professional handling of your property, optimised occupancy rates, and a seamless experience for both owners and guests.