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Following intense opposition to June's Budget measures, the Cabinet announced "grandfathering and moratorium" provisions for the real estate sector on July 11, but concrete details remain elusive as stakeholders await the Finance Bill.
After the budget speech, private sector stakeholders, including real estate agencies, property developers, and financial services firms actively voiced opposition. The Mauritius Chamber of Commerce & Industry (MCCI) and Real Estate Association sent written submissions to the Ministry of Finance. With developers losing buyers, complaint letters even reached the Economic Development Board.
The sustained pressure yielded results: government listened and showed willingness to adjust. The Cabinet "took note" of concerns and announced that "some grandfathering and moratorium will be provided for more certainty to the property market."
Understanding the Measures
Grandfathering ensures existing projects continue under old rules. Projects with permits and construction started before the cutoff will likely retain tax benefits like VAT refunds and income tax exemptions. Only new projects after June 5, 2025 lose these incentives.
Moratorium provides temporary suspension of new policies. The government might pause certain property measures, giving market adjustment time. Industry insiders expect developers could receive 6-12 months before 10% land-transfer tax on foreign sales becomes payable, allowing sales contract adjustments. Foreign buyers who signed under 5% duty and developers with near-completion units stand to benefit.
Mixed Reactions
A financial expert called these provisions an important "course correction" to protect acquired rights and restore investor confidence. Philippe de Beer of Park Lane Properties welcomed the "thoughtful approach."
However, Ashvin Bukhory of the Estate Agents Association expressed frustration: "The decision lacks clarity. We don't know which measures benefit from this acquired right."
Political observer Rajen Valayden was harsher, calling it "blanket covering" that maintains uncertainty whilst favouring big business over middle-class concerns like ended Home Loan schemes.
Next Steps
The Finance (Miscellaneous Provisions) Act 2025, expected by late July, must transform these broad directions into enforceable provisions. The legislation will clarify cutoff dates, compliance requirements, and transition periods, providing the certainty the property market desperately needs.
