The year 2025 marks a strategic phase for the real estate market in Mauritius. After several cycles of expansion, the market is entering a more balanced period, while remaining extremely attractive to international investors and local buyers. The tax changes announced for 2026, combined with continued strong demand for residential and high-end properties, are shaping a changing real estate landscape. This article analyzes the major trends of 2025 and the concrete outlook for 2026 to help investors make informed decisions.
1. A strong but stable market in 2025
In 2025, the Mauritian real estate market is showing more mature behavior, with prices gradually stabilizing. Transactions remain active, particularly in the most sought-after regions such as the north and west, but the momentum is no longer as explosive as it was in 2022–2023. This moderation does not reflect a decline in interest; on the contrary, demand remains high, but is more focused on high-quality properties in good locations that meet the expectations of a demanding clientele.
Key signals observed in 2025
• Price stabilization in several regions.
• Strong rental demand for high-end properties, particularly around international schools and tourist areas.
• Continued development of premium projects (villas, penthouses, Smart City residences).
• Sustained interest from expatriates and foreign investors in acquisition schemes such as PDS, IRS, and Smart City.
This stabilization is part of a mature market trend, where buyers are taking more time to compare, analyze, and secure their purchases.
2. Impact of tax measures for 2025–2026 and expected effects in 2026
The 2025–2026 Budget introduces several major tax adjustments that will directly affect real estate, particularly for non-citizens. These measures will come into effect gradually and will have full impact from July 2026.
Key measures
• Increase in registration and transfer fees for foreign buyers (from 5% to 10% in certain segments).
• Reduction or elimination of certain tax benefits for Smart City projects.
• Increased focus on environmental standards and sustainable development criteria.
• Government commitment to stabilizing the market and encouraging long-term investment rather than a speculative approach.
Expected effects in 2026
• Transition window favorable to buyers until July 2026, allowing them to secure more advantageous conditions before the new rates come into effect.
• Strong selectivity among international investors, with a refocus on premium properties offering stability, location, and heritage value.
• A more rational, less volatile market, better structured around real demand.
For foreign investors, 2025–early 2026 is a strategic period to finalize a purchase under optimized conditions before the tax adjustment.
3. Market segments to watch in 2025–2026
The MLI (Multilateral Instrument) is an international treaty developed by the OECD as part of the BEPS (Base Erosion and Profit Shifting) project.
Its purpose is to quickly and simultaneously amend existing bilateral tax treaties between countries in order to incorporate anti-abuse and transparency clauses without having to renegotiate each treaty individually.
Rental investment
Demand for high-end rentals remains strong, particularly in Rivière Noire, Tamarin, Flic en Flac, Grand Baie, and Pereybère. Properties offering a combination of stable rental yields and potential for appreciation remain the most sought after.
Strategic geographic areas
• North: Grand Baie, Mont Choisy, Pereybère — highly attractive residential and commercial areas.
• West: Rivière Noire, Tamarin — sought-after living environment, close to amenities and schools, expanding high-end market.
• Smart Cities: attractive to families and expatriates, although some tax advantages have been reduced.
• East: Roches Noires, Beau Champ — peaceful, golf, premium quality of life.
4. Opportunities for investors looking ahead to 2026
Finalize acquisitions before July 2026
This window allows you to avoid higher new transfer fees, a significant financial advantage for premium properties.
Focus on sustainable and modern properties
Projects incorporating energy efficiency, renewable energies, sustainable resource management, and thermal performance will enjoy higher value in a few years’ time.
Prioritize properties that combine personal use and rental income
This dual functionality allows you to secure a return on investment while enjoying the quality of life offered by Mauritius.
FAQ – The 6 most frequently asked questions about the Mauritian real estate market in 2025–2026
Will real estate prices rise or fall in 2026?
Prices are expected to remain stable overall, with a slight increase in premium areas. Segments with lower demand could experience stagnation.Is now the right time to buy before the 2026 tax changes?
Yes. Buyers still benefit from more favorable registration fees until July 2026, which makes the purchase more financially attractive.Will foreigners still be able to purchase property in Mauritius in 2026?
Yes. The PDS, IRS, Smart Cities, and certain high-end projects remain accessible to non-citizens.What are the best sectors for rental investment in 2025-2026?
The best performing areas are Rivière Noire, Tamarin, Grand Baie, Mont Choisy, and parts of Pereybère.Will Smart City projects remain attractive despite the new tax adjustments?
Yes, because they offer a modern, secure living environment with integrated amenities. However, their appeal will depend more on the quality of the project than on tax benefits.What type of property will be most sought after in 2026?
Premium properties with sea views, proximity to schools, and high heritage value, as well as projects incorporating high environmental standards.
Conclusion
In 2025, the Mauritius real estate market will enter a more structured and stable phase, but one that remains highly attractive to investors. The tax adjustments planned for 2026 reinforce the importance of a well-thought-out strategy: choosing the right locations, favoring high-end properties, and securing an acquisition before the new tax rates come into effect. For long-term investors, Mauritius remains one of the strongest and most resilient markets in the region, combining quality of life, legal certainty, and sustainable asset appreciation.
