Can foreigners buy property in Mauritius?

Yes, but only through approved government schemes such as PDS, Smart City, or the G+2 apartment scheme. Freehold land purchases outside these frameworks are generally not permitted for non-citizens.

What is the minimum investment to get residency through property in Mauritius?

Purchasing a property valued at USD 375,000 or more within an approved PDS or IRS development qualifies the buyer and their dependants for a Mauritian residency permit.

Are property prices rising in Mauritius?

Yes, particularly in the luxury and coastal segments. Limited land supply, strong expat demand, and tourism growth have supported consistent price appreciation over the past five years.

Is there capital gains tax on property in Mauritius?

No. Mauritius does not levy capital gains tax on property sales, which is a key advantage for investors looking to benefit from long-term appreciation.

Which part of Mauritius is best for property investment?

The north (Grand Baie) offers the most liquid market and strongest rental demand. The west (Tamarin, Black River) provides better value. The east and south suit buyers prioritising exclusivity and long-term growth.

What rental yields can I expect from Mauritius property?

Long-term rental yields typically range from 4 to 7 percent per annum. Short-term holiday lets in prime coastal areas can achieve higher returns during peak tourist season.

Mauritius Real Estate Market Analysis 2025

Mauritius Real Estate Market Analysis: What Buyers and Investors Need to Know in 2025

The Mauritius real estate market remains one of the most resilient and internationally attractive property markets in the Indian Ocean region. Prices have risen steadily across premium segments, foreign ownership frameworks have matured, and demand from European, South African, and Asian buyers continues to outpace supply in key coastal corridors. Whether you are planning to relocate, retire, or invest, understanding the market structure is essential before committing capital.

How Has the Mauritius Property Market Performed in Recent Years?

Over the past five years, the Mauritian property market has recorded consistent capital appreciation in the luxury and mid-range segments. The COVID-19 period created a short pause, but recovery was swift. Key drivers include:

Tourism-linked demand: Mauritius welcomed over 1.3 million tourists in 2023 and targets higher figures annually, sustaining short-term rental yields and villa demand.
Diaspora and expat inflows: The country's Premium Visa and Occupation Permit schemes have attracted a growing base of remote workers and retirees, translating directly into residential demand.
Limited land supply: Mauritius covers just 2,040 square kilometres. Coastal land is finite, which structurally supports long-term price floors.
Currency dynamics: Properties priced in Mauritian rupees offer relative value to buyers holding euros, US dollars, or South African rand, particularly when the rupee softens.

Gross rental yields for villa and apartment properties in prime areas typically range between 4 and 7 percent per annum, with short-term holiday lets capable of pushing returns higher in peak season.

What Are the Main Property Segments in Mauritius?

Luxury Villas and IRS/RES/PDS Schemes

Foreign nationals cannot purchase freehold land in Mauritius freely. However, the government has created structured frameworks that allow non-citizens to buy property legally and qualify for residency:

IRS (Integrated Resort Scheme): Large-scale luxury developments, minimum purchase price of USD 375,000, grants residency.
RES (Real Estate Scheme): Smaller developments on plots under 10 hectares, no minimum price floor for residency eligibility (though residency requires meeting a threshold).
PDS (Property Development Scheme): Replaced and consolidated IRS and RES from 2015. Covers villas, apartments, penthouses, and serviced plots within approved developments. A purchase above USD 375,000 qualifies the buyer and dependants for a residency permit.
G+2 Scheme: Allows foreigners to purchase apartments in buildings of at least three storeys, with a minimum price of MUR 6 million (approximately USD 135,000 at current rates).
Smart City Scheme: Mixed-use urban developments combining residential, commercial, and leisure components.

For buyers seeking freehold land or standalone properties outside these schemes, a local partner or corporate structure may be required, and legal advice is strongly recommended.

Mid-Range and Local Market Apartments

The local residential market, primarily serving Mauritian citizens and long-term residents, offers more accessible price points. Towns such as Quatre Bornes, Rose Hill, and Curepipe contain solid mid-range apartment stock. These are generally not available to foreign buyers under standard rules, but the G+2 scheme opens a portion of this segment.

Commercial and Mixed-Use Property

Demand for Grade A office space in Ebene Cybercity and Port Louis remains stable, driven by the financial services and BPO sectors. Retail and hospitality assets are also attracting institutional interest as tourism infrastructure expands.

Which Areas Offer the Best Real Estate Opportunities?

The North: Grand Baie and Surroundings

Grand Baie is the lifestyle capital of Mauritius. It offers the highest concentration of PDS and IRS developments, strong short-term rental demand, international schools, and a well-established expat community. Prices per square metre for luxury villas can exceed MUR 150,000 in premium beachfront positions.

The West: Tamarin, Black River, and La Preneuse

The west coast has evolved rapidly over the past decade. Tamarin attracts surfers, families, and younger expatriates. Black River offers a quieter, more nature-oriented lifestyle. Property values are generally 10 to 20 percent lower than comparable north coast stock, making it attractive for value-focused buyers.

The East: Belle Mare and Palmar

The east coast is known for its turquoise lagoons and some of the island's most prestigious hotel addresses. Residential development here is more limited, which keeps supply tight and supports strong resale values.

The South: Bel Ombre and Riviere des Anguilles

The south remains the least developed coastal zone, offering genuine land value and emerging resort projects. It suits buyers prioritising privacy and long-term capital growth over immediate rental income.

What Are the Costs and Taxes Involved in Buying Property in Mauritius?

Buyers should budget for the following transaction costs:

Registration duty: 5 percent of the property value (applicable in most transactions).
Notary fees: Approximately 1 to 2 percent, regulated by law.
Agency commission: Typically 2 to 3 percent, often paid by the seller but worth clarifying.
Land Transfer Tax: 5 percent, payable by the seller but sometimes factored into negotiation.
VAT: 15 percent applies to new PDS properties in certain structures. Confirm with your notary.

Annual property taxes in Mauritius are low by international standards. There is no capital gains tax on property, which is a significant advantage for investors.

How Do You Find Property in Mauritius?

Working with a reputable local agent and a qualified notary is essential. Online platforms such as PropertyFinder.mu provide a broad and regularly updated inventory of PDS villas, apartments, and commercial listings across all regions of the island. Filtering by scheme type, price range, and location allows buyers to shortlist efficiently before engaging agents directly.

What Is the Outlook for the Mauritius Real Estate Market?

The medium-term outlook is cautiously optimistic. Government policy continues to support foreign investment in property, new Smart City projects are adding modern mixed-use stock, and the island's reputation as a stable, low-tax jurisdiction with good air connectivity to Europe and Africa remains intact. Risks include global interest rate movements affecting buyer affordability, rupee depreciation compressing local purchasing power, and infrastructure constraints in the most popular coastal zones.

For long-term investors and relocators, Mauritius continues to offer a compelling combination of lifestyle quality, legal security, and tax efficiency that few other Indian Ocean destinations can match.