According to a recent Market Trends report, villas and penthouses are Mauritius’s most sought-after properties for luxury residential living. The information published by LexpressProperty, in collaboration with Market Trends, the real estate market research specialists, collates online searches for Mauritius properties from January to December 2022 and highlights where there is value and demand.

Results confirm the ongoing preference for the North (36%), particularly for South Africans, and the West (26%), with 16% of searches directed to the East.

Almost half of the searches are for villas (on land of more than 1,000 sqm), 15% for penthouses, 14% for duplexes/townhouses and 13% for apartments and land. Of those, 20% specified property with a waterfront or access to the sea. People living on the island amount to almost half the searchers, followed by residents in France (9%), the UK, Belarus and the US (6%), Switzerland (5%) and finally, Malawi, New Zealand and South Africa (4%). “Investors have a wide choice of high-end properties with sea view or a view on a golf course, and other luxury services such as a concierge or hotel service when the real estate project is attached to a hotel,” says Sachin Mohabeer of the Economic Development Board (EDB) Mauritius.

Upscale residential living by the sea

Properties that suit the luxury residential living sector in Mauritius are defined in terms of pricing from MUR47m (USD1,03m) or more or MUR300,000/sqm (USD6,600).

According to the report, Villas have a median price of MUR76m (USD1,67m), while penthouses and duplexes/townhouses are around MUR65m (USD1,43m). More luxury residential properties are in the West (44%). The North has a 33% concentration, followed by the South with 12% and the East with 10%. Key areas are Tamarin, Black River, Bel Ombre, Grand Bay, and Beau Champ.

“There is a demand for investment in luxury real estate in Mauritius but the ultraluxury offer remains rare, especially in terms of waterfront properties,” says Mohabeer. “Investors are increasingly looking for sustainable projects with green amenities. Some investors are willing to switch to projects more in line with these values.”

More homeownership incentives for foreigners 

The Mauritius Budget Speech for the fiscal year 2023-2024, presented by Dr The Hon. Renganaden Padayachy, reinforces the government’s commitment to sustaining economic recovery and guiding Mauritius towards becoming a modern, sustainable, and resilient nation.

According to the IMF’s World Economic Outlook report in April 2023, Mauritius is one of the top 20 fastest-growing economies globally. “In 2022, the Mauritian economy grew fastest in over 35 years – 8.7% compared to an initial forecast of 7.2 %. Our GDP exceeded earlier estimates by MUR 26bn to reach MUR 570bn. Foreign direct investment totalled MUR 27.7bn, 50 % higher than in 2021,” says Padayachy.

According to the EDB, France and South Africa were the primary market sources for the increase in FDI. In its Economic Outlook shared in its Budget Newsletter 2023-2024, the EDB notes: “Real estate activities account for 54.7% of gross direct investment flows, followed by Education (13.4%)… The real estate sector, in tandem with the construction sector, offers diversified asset classes and is well-positioned in the global property market. In 2022, private sector investments in the construction and real estate sectors stood at MUR 38bn. In contrast, FDI in the real estate sector witnessed impressive growth with over 600 sales in regulated schemes amounting to MUR 15.4bn.”

Changes for non-citizen retirees

The silver economy segment has played a crucial role in bolstering the real estate sector. According to the EDB, in 2022, applications for residence permits by foreign retirees increased by 268%. More than half (52%) of residence permit holders hail from France, 28% from South Africa, and the balance from England (8%), Switzerland (5%) and Germany (4%).

As per the National Budget Speech 2023-2024, the Immigration Act will be amended to grant a residence permit to a retired non-citizen 50 years and older and his family when they buy a property in a Property Development Scheme (PDS) project relating to senior living. The purchase price must exceed USD 200,000. This amendment will be backdated, applying from 27 April 2019. The status of the resident will be valid as long as the buyer holds the property.

Moreover, a resident non-citizen may buy a residential property outside of existing schemes subject to the payment of an additional registration fee of 10%. The minimum value of the property acquired will be increased to USD 500,000. Only the primary holder of the resident permit may purchase it (not their spouse or children).

Currently, the Retirement Permit is valid for 10 years and renewable, is available to any non-citizen above 50 years, and allows dependents to benefit from residence permits in Mauritius.

Holders of a retirement permit needed to transfer USD 1,500 monthly (or USD 18,000 yearly) to their Mauritian bank accounts to maintain access. However, the Minister of Finance announced the removal of this requirement henceforth. As such, an applicant will only have to show proof of funds from his bank in his country of origin when applying for the Retirement Permit. This policy is yet to be enacted in law and is expected to come into effect by the end of July 2023.