Mauritius’ real estate sector is poised for continued growth, driven by strategic development, innovation, and investment opportunities. In this feature, Rajen Manikion, Head of Domestic Corporate at Absa Mauritius, provides a deep dive into the trends shaping the market in 2025.
This article explores how Absa is supporting clients with tailored financing solutions and sector-specific expertise.
Discover how Absa’s proactive approach is empowering sustainable development and contributing to the future growth of Mauritius and the African continent.
1. What are the key trends shaping real estate investment in 2025?
Over the past 24 months, Mauritius has witnessed significant development activity, a trend projected to persist in the foreseeable future. This ongoing momentum is supported by numerous development projects across the island. The increase in development spans all major asset classes, with residential and office/commercial real estate leading new investments. The Residential Property Price Index (RPPI) notably reached 213.3 in the third quarter of 2024, reflecting a steady appreciation in residential property values. The country's appeal as a destination for real estate and investment remains robust. The development of several master-planned communities and mixed-use projects has significantly boosted economic activity, establishing Mauritius as a key destination for business and lifestyle investments in the region.
According to recent data from Statistics Mauritius, the Gross Value Added (GVA) for real estate activities in 2022 was estimated at MUR27,544 million, an increase from MUR26,042 million in 2021. This growth underscores the sector's rising contribution to the economy. The long-term fundamentals of Mauritius' development sector remain robust. Continued demand for high-quality residential, commercial, and industrial developments will provide resilience against external economic shocks. According to Statistics Mauritius' latest projections, private sector investment, including real estate developments, was anticipated to grow by 14.5% in 2023, compared to a 9.6% increase in 2022.
Mauritius' strategic location, coupled with its commitment to sustainability and innovation, will continue making it an attractive destination for investors seeking long-term growth opportunities in the real estate and infrastructure sectors. Absa Bank Mauritius's client-focused approach and innovative solutions are crucial in facilitating and supporting such developments. Additionally, they contribute to the broader goal of empowering Africa’s future.
2. What are the main criteria that banks and financial institutions consider when granting a real estate loan?
Absa Mauritius recognizes real estate as a key sector with significant growth potential and remains committed to expanding its market share within this space. The bank sees real estate development as a strong indicator of investor confidence and economic activity, making it a strategic focus for financial support and investment.
The Commercial Property Finance Team at Absa is composed of highly experienced professionals who understand that each transaction is unique. As a result, the bank offers customised financing solutions that are tailor-made to align with each client’s requirements while adhering to the bank’s risk management.
3. How does Absa Mauritius support investors in financing their real estate projects?
Absa stands out due to its in-house, multi-dimensional team with deep sector expertise. This team plays a crucial role in conducting thorough due diligence, cost assessments, and feasibility studies to ensure that development projects are financially sound and well-structured.
Absa strongly encourages early engagement with promoters and potential clients during the planning phase of their projects. By involving the bank at an early stage, clients can benefit from tailored financial structuring, risk assessment, and strategic guidance that align with their long-term vision. This proactive approach ensures that Absa can provide efficient, effective, and well-structured financing solutions that enhance project success while mitigating potential risks.
Our commitment to fostering a culture of excellence and innovation in providing our clients with top talent is recognised by the Top Employer Institute, which has certified Absa Mauritius as a Top Employer 2025 for both Mauritius and Africa. The bank invests in continuous professional development, attracting subject matter experts from both Mauritius and abroad to enhance its service offerings. This dedication to talent development ensures that clients receive expert guidance and support, reinforcing Absa's position as a trusted partner in real estate financing.
4. What areas of improvement could enhance the attractiveness of the real estate sector?
To further enhance the attractiveness of the real estate sector in Mauritius, a combination of infrastructure development, financial incentives, and market innovations is essential. By addressing several key focus areas, Mauritius can foster a more dynamic and investor-friendly environment, driving sustainable growth in the sector.
These areas include:
• Infrastructure and urban planning improvements
1. Expansion of smart-city initiatives
Continued investment in mixed-use smart cities with integrated technology, green spaces, and efficient transport systems will increase real estate demand.
2. Enhanced transport and connectivity
Strengthening road networks, public transit, and digital infrastructure will make certain locations more attractive for residential and commercial investment.
3. Sustainable energy solutions
Promoting green building initiatives and alternative energy sources (solar, wind) will improve long-term viability and attract eco-conscious investors.
• Financial and market development
1. Establishing a REITs market in Mauritius can provide an alternative investment vehicle, offering liquidity and diversification in the real estate sector. This would encourage local investments from pension funds and institutional entities, as well as foreign investment (which will require regulatory relaxation).
2. A diverse group of investors supported by local banks will help create a well-structured capital framework for the real estate sector.
• Addressing market demand and housing affordability
1. Diversification of property types
Encouraging developments in co-living spaces, student housing, and affordable housing can cater to different demographics beyond luxury buyers.
2. Public-private partnerships for middle-income housing solutions can address housing shortages and create a more inclusive market.
• Adoption of technology, innovation, and sustainability
1. Sustainable and smart building technologies
Providing incentives for green buildings, energy-efficient construction materials, and water conservation systems can increase long-term value.
• Strengthening market transparency and data availability
1. Better access to real estate data, including pricing trends, occupancy rates, and transaction volumes, can help investors make informed decisions.
2. The introduction of a real estate index to track price movements against market performance would add confidence and attract institutional investors.
A holistic approach focusing on these key areas will make Mauritius a more attractive and competitive destination for real estate investment, ensuring sustained growth and development for years to come. Absa’s continued involvement in these efforts, from offering tailored financial solutions to advocating for sustainable development, will contribute to both the long-term prosperity of the real estate sector and the broader economic growth of Mauritius and Africa.
