Foreign demand for luxury real estate in Mauritius has skyrocketed, with foreign direct investment (FDI) inflows reaching $530 million in 2024.
This surge is attributed to the island’s appeal as a premier destination for high-net-worth individuals seeking idyllic living conditions and tax advantages.
Key Takeaways
- FDI inflows into Mauritius increased by 27% to 23.1 billion rupees ($503 million) in the nine months ending September 2024.
- Real estate activities accounted for 69% of total foreign investments, with a 59% year-on-year increase in the sector.
- Sales of luxury residential units to foreigners rose by a third, totaling 10.24 billion rupees.
- The luxury property market is primarily driven by European buyers, particularly from France.
Surge in Foreign Direct Investment
Mauritius has experienced a remarkable increase in foreign direct investment, primarily driven by the luxury real estate sector.
According to the Bank of Mauritius, FDI in the real estate industry climbed 13% to nearly 24 billion rupees ($530 million) in 2024.
This growth reflects a broader trend of high-net-worth individuals seeking permanent residences in the tropical paradise.
Luxury Property Sales on the Rise
The luxury property market in Mauritius has seen significant activity, with acquisitions of high-end villas and apartments totaling 18.6 billion rupees, up from 13.9 billion rupees in 2023.
Notably, the sale of a six-bedroom beachfront villa for $13.6 million marked a record high for residential property sales on the island.
This villa, located in the exclusive One&Only Private Homes Le Saint Géran resort, was purchased by a young European family looking to relocate permanently.
Factors Driving Demand
Several factors contribute to the growing demand for luxury real estate in Mauritius:
- Tax Advantages: The absence of capital gains and inheritance taxes makes Mauritius an attractive option for foreign buyers.
- Lifestyle Appeal: The island’s stunning beaches, warm climate, and high-quality amenities appeal to affluent individuals seeking a luxurious lifestyle.
- Investment Opportunities: The potential for rental income through branded residences adds to the allure for investors.
The Future of Luxury Real Estate in Mauritius
As the demand for luxury properties continues to rise, prices have escalated significantly. Homes priced over $10 million are becoming more common, reflecting the increasing desirability of the island.
The trend is expected to persist, with more high-net-worth individuals considering Mauritius as their permanent residence or vacation home.
The luxury real estate market in Mauritius is not only a reflection of the island’s economic growth but also a testament to its evolving status as a global luxury destination.
With ongoing developments and a focus on attracting affluent buyers, Mauritius is poised to remain a key player in the luxury real estate sector for years to come.
