North Mauritius Secures 54% of Luxury Property Sales as Retirees Flock South

The north of Mauritius has emerged as the premier destination for international property investors, capturing 54% of all foreign purchases in a surging luxury real estate market.

A joint report by CareEdge Ratings Africa and StraConsult reveals that the sector is increasingly driven by the “silver economy,” with wealthy foreign retirees seeking security and a serene lifestyle. Investors aged 50 and over now account for 61% of all buyers across all price brackets.

High-End Demand

The appetite for ultra-luxury estates is particularly sharp among senior buyers. In the price bracket ranging from Rs 110 million to Rs 160 million, those over 50 represent a staggering 76% of the market.

While the North remains the undisputed favourite, the West follows as the second most popular region, accounting for 26% of transactions.

Coastal hotspots such as Grand Baie, Pereybère, and Trou aux Biches are cited as primary draws due to their modern infrastructure and proximity to the La Croisette shopping centre.

Nationalities on the Move

French nationals continue to lead the investment wave, making up 42% of foreign buyers, with a distinct preference for northern coastal locations.

South Africans represent the second-largest group at 22%. Interestingly, the report notes geographical preferences by nationality:

• French: Strong preference for the North.
• Swiss and Belgians: Showing a greater affinity for the centre of the island.

Economic Impact and Cooling Measures

Since the early 2000s, luxury real estate has evolved into a “mature segment” and a vital pillar of the Mauritian economy, supporting sectors such as construction, tourism, and financial services.

However, this rapid growth has come with significant price appreciation. The Residential Property Price Index has climbed steadily since 2019, reaching 205.7 in 2024.

In response to this “boom” and subsequent price tensions, the Bank of Mauritius has introduced stabilisation measures:

• Provisioning: Commercial banks must now hold an additional 0.5% provision on real estate credit portfolios.
• Monetary Policy: The Key Rate has been maintained at 4.5% to manage debt levels.

Future Outlook

Following a 17% surge in Gross Fixed Capital Formation (GFCF) within the sector in 2024, analysts expect a slight contraction of 2.6% in 2025.

Despite this, demand remains buoyed by investment-led residency schemes, including the Integrated Resort Scheme (IRS) and the Property Development Scheme (PDS), which continue to attract the global elite to Mauritian shores.

Source: Defi Media