Mauritius

The country's financial services sector is experiencing robust growth, further bolstered by a tourism recovery and increased foreign direct investment since 2020. In 2023, the leading real estate sectors, in terms of yields and capital growth, have been private healthcare, retail, and the luxury residential market.

Surge in demand for luxury villas and apartments 

Transaction values for residential properties reached US$ 1.5 bn in 2022/23, marking a 16% increase from 2021/22. Despite the repo rate holding steady at 4.5% in April 2024, the highest since 2015, domestic housing demand slightly eased in 2023. However, the market for luxury villas and apartments saw a significant surge in demand from foreign buyers, with France, South Africa, and the UK contributing to 68% of transaction volumes in this segment.

Residential property prices have been on an upward trajectory, averaging an annual increase of 10.6% since 2019. Notably, the 12 months ending Q1 2023 also saw a sharp 35% rise in residential property prices.

Oversupply of lower grade offices 

Prime-grade office vacancies in Mauritius have decreased to 7%, while B-grade vacancies have risen to 25%. The country hosts c.1,055,000 sqm of investment-grade office space, predominantly in the West. Ebene Cybercity leads with 49% of the total stock, followed by the capital, Port Louis, with 31%. Additional nodes stretch from the airport corridor to Moka, Grand Baie in the north, and Cascavelle in the south.

The oversupply of Grade B office space, primarily concentrated in 15 non-performing assets totalling approximately 76,000 sqm that have remained vacant for 4 to 6 years, skews the overall vacancy rate. Excluding these, the vacancy rate adjusts to approximately 7% on average. 

New office developments slowed to a 1% growth rate in the second half of 2023, largely due to the addition of 10,000 sqm of Grade A offices in the 3rd and 4th  towers at the Docks in Port Louis. Despite efforts to restore heritage sites and the newly opened metro rail network, traffic congestion and limited parking in the capital continue to hinder office rental growth.

Looking ahead, the development pipeline for the next two years includes approximately 140,000 sqm of additional Grade A office space. Over 75% of this new development is concentrated in and around Ebene, notably within the Tribeca and Cote d'Or Technopole precincts and the centre of Telfair. The market has also seen a significant increase in LEED Green-certified office buildings, growing from just six buildings in 2020 to an additional 20 buildings in 2024, bringing the total to c. 60,000 sqm.

Robust performance in the hospitality sector 

The Mauritian tourism market has seen a robust recovery, with 2023 tourist arrivals reaching 95% of 2019 levels, totalling 1.3 million visitors. The Stock Exchange of Mauritius (SEM)-listed LUX Island Resorts, Sunlife Resorts, and New Mauritius Hotels lead the luxury hotel sector. The sector witnessed a significant increase in demand in 2023, with New Mauritius Hotels reporting a 6% rise in revenues for the first half of FY2024. Average hotel occupancy rates for 2023 stood at 67%, with revenue per available room (RevPAR) surpassing 2019 levels in the 4-star and 5-star segments. With limited new supply on the horizon, hotel performance is expected to remain strong through 2024 and into 2025.

Increased occupancies in the retail sector

Mauritius boasts over 350,000 sqm of mall shopping establishments, with average occupancies exceeding 90%. Ascencia dominates the sector, controlling approximately 40% of the total mall space. Most shopping malls are strategically located along the North-South Highway, as well as in Grand Baie, Flaq, and Tamarin on the West Coast.