Before investing in real estate, in Mauritius as anywhere else in the world, many questions naturally arise: the objective of the investment (rental, residential, seeking capital gains upon resale in the short or long term…), the financial situation (budget, loan, return on investment…), the property itself (condition, potential renovations, location, potential rent, expenses, taxes…), taxation in general, management, what is the current market situation, what was it like before, how has the urban landscape evolved and is it evolving, what are the trends…?
A brief historical overview is therefore necessary to better “feel” the market. Not so long ago, until the early 2000s, the market was exclusively local, reserved exclusively for Mauritians; expatriates were completely excluded.
To better understand how the real estate landscape was taking shape in this not-so-distant past, it is helpful to briefly recap the importance that sugar has played, and continues to play, in the Mauritian economy. Indeed, its history is closely linked to the economic, social, and even political development of the island for over 300 years and has consequently had a major influence on the real estate landscape. Introduced by the Dutch in the 17th century and still relatively undeveloped, sugarcane cultivation became more structured, with the introduction of sugar mills and the use of slaves under the French (1715–1810).
Under the British (1810–1968), the sugar industry became the main economic activity. The abolition of slavery in 1835 was followed by the massive arrival of indentured Indian laborers to work on the plantations. This activity would remain crucial and a dominant economic pillar. Until very recently, sugar still represented nearly 90% of the country’s exports.
At its peak, over 250 sugar factories were in operation. The sugar industry thus structured rural Mauritius, with the formation of large estates, workers’ villages, and a railway network for transport that has unfortunately disappeared today.
The sugar estates, which belonged to a handful of families, covered a vast area of the island. Urban areas were limited: towns like Port Louis, Curepipe, Rose Hill, and Quatre Bornes were the main residential centers. The coasts were sparsely populated and reserved primarily for agriculture or fishing.
Access to property was very limited, particularly for the less privileged classes. With independence in 1968, some land was gradually redistributed. From 1960 to 1980, population growth led to urban development in the center of the island.
From 1980 to 2000, we witnessed the expansion of secondary towns such as Vacoas, Triolet, and Mahébourg.
The rise of international tourism led to the construction of the first hotels, especially in the North and West. However, real estate prices remained relatively low; land and houses were still affordable compared to today’s standards.
There was little high-end development or gated communities, and although the first coastal developments with the construction of second homes were emerging, beachfront properties were not yet valued as they are today. Foreign investment was very limited, if not nonexistent. The market was not very speculative and was based on family or agricultural use.
A major event then completely disrupted the real estate landscape: the end of the ACP (Africa, Caribbean, Pacific) – EU preferential agreements, which guaranteed preferential sugar prices and led to a drastic drop in income for sugar producers and threatened the Mauritian economy as a whole. Mauritius had to reinvent its economic model; the large sugar families and groups (Medine, ENL, Terra, Omnicane…) had to diversify their activities to survive. Some low-yield agricultural land, especially in the West and North, could be converted into real estate, whether for housing, commercial zones, or new infrastructure.
Therefore, to maximize the value of these lands and to generate foreign currency, the government decided to allow non-Mauritians to own property under certain conditions and in specifically designated areas. The authorities established a specific legal framework to allow non-citizens to invest in diverse and varied projects. This led to the emergence of the IRS, RES, smart cities, and other schemes, which we will discuss later.
The real estate market and its regulations, which have been booming since the 2000s, and particularly since the decline of the sugar industry, have been constantly evolving. This new landscape has led to, among other things, a complete overhaul of the road network and the development of new modes of transportation such as the metro, with other projects currently under consideration. We therefore know today a Mauritius very different from what it was just a few years ago, in the midst of a real estate revolution with a multitude of projects and products all over the island, which we will analyze soon.
