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In its June 2025 country report on Mauritius’s residential real estate sector, the International Monetary Fund (IMF) highlighted clear signs of market overheating, a post-pandemic boom, and growing regional price disparities. Three months later, official data validates the IMF’s core arguments. The latest Residential Property Price Index (RPPI) from Statistics Mauritius and PropertyCloud.mu's own listings data confirm a market characterized by rapid price appreciation and significant regional shifts
The IMF's comprehensive analysis identified that Mauritius's housing market transitioned into an "expansion and boom phase" following the pandemic in 2020. Historically, the market has been shaped by government policy over the last two decades. Between 2010 and 2020, the market matured significantly due to Foreign Direct Investment (FDI) channeled through initiatives like the Integrated Resort Scheme (IRS) and the Property Development Scheme (PDS). Post-pandemic, this boom was amplified by specific fiscal measures, notably the Home Ownership and Home Loan Schemes, which boosted demand. This surge contributed to an 80% increase in residential real estate prices since 2019, significantly outpacing wage growth.
The IMF noted that Mauritius faced a contradictory situation. While financial regulators tried to cool the market by making bank lending rules stricter (for example, by requiring larger down payments from buyers), the government's financial incentives—like cash-back schemes for homebuyers—were simultaneously boosting demand. According to the IMF, these incentives ultimately overpowered the lending rules, contributing directly to the market overheating.
Beyond the national surge, the market is increasingly fragmented. The IMF first identified growing price differences across districts, with areas like Moka and Pamplemousses emerging as new high-value zones due to major infrastructure investments. PropertyCloud.mu’s nine-month analysis of 15,238 listings provides granular proof of this divergence. The northern region remains dominant, commanding 45.1% of all property listings. However, other regions show unique dynamics: the East has the island's highest average sales price at Rs 47.3 million, while the Centre region displays remarkable efficiency, generating 28.1% of demand from just 14.8% of listings, indicating intense competition.
In its report, the IMF made a direct recommendation: to scale back the fiscal stimulus measures that fueled this price surge. The Mauritian government acted decisively on this advice. The National Budget, announced on June 5, 2025, and the Finance Act, gazetted on August 9, 2025, implemented several key changes. The Home Ownership and Home Loan Payment Schemes were officially discontinued after June 30, 2025. Furthermore, taxes on property transactions for non-citizens were increased, with both registration duty and land transfer tax becoming effective as from July 1, 2026. These actions represent a clear and comprehensive policy shift designed to cool the overheated market, directly aligning with the IMF's guidance.
Looking ahead, the IMF's report serves as a critical benchmark. It implicitly suggests monitoring the impact of its recommendation to scale back fiscal stimulus measures. The evolution of FDI, particularly from key markets like France and Europe, will also be a crucial indicator to watch, as this has been a primary engine of the luxury market's growth.
