The Real Estate Industry in Mauritius "Post-COVID-19"

COVID-19 took the world by storm at the beginning of 2020 and has never truly left us as we individually still mourn the death of loved ones and the world over still mourns economic losses that include inflation, unemployment and salary and wage reduction. The results of these worldwide circumstances have equaled a severe decrease in consumer spending, this includes the real estate and housing markets which could not overcome the throes of the pandemic despite being widely acknowledged as an industry of Veblen goods (Sani, Aliyu, and Nuhu 2021).

Mauritius is one of the most prominent tourist attractions in the world and therefore the government restrictions implemented worldwide caused a severe decline in activity in the real estate market. According to Wang (2021) this was a common theme worldwide based on a study conducted in America where it was established that economies that rely heavily on face-to-face interaction industries such as tourism, aviation and service were bound to be some of the worst stricken areas of the world. However the world has seen the worst of the pandemic at the very least for the foreseeable future and the restrictions have been lifted for the most part. Several industry leaders in Mauritius such as Barnes International Realty digitalized their services and kept in touch with customers through social media and email marketing. Furthermore they predicted that the market would recover and reestablish its rise upon the reopening of borders (Barnes Mauritius 2021). Unfortunately the reopening of borders did not take place until October 2021 after a failed attempt in July 2021 which saw a rapid spike in cases and deaths due to new variants. But it begs the question...

What has the real estate market looked like since October 2021?

Well, the real estate and housing markets were one of the very first to recover from the pandemic in Mauritius because of its reliance on foreign investment and tourism. In a New York Times article the CEO of Barnes Mauritius said she was pleased to report that the market has recovered extremely well especially because of the ratio of stock to buyers as well as the average price of land per square meter being the lowest in comparison to any other tropical island in the world (The New York Times 2022).

This is evident in massive purchases that have occurred since October for example the U$95 million acquisition by Barrows Hotel Enterprises for Lagoon Gardens (Africa Business 2022). This shows promising signs because it indicates the foreign perception and sentiment over real estate in Mauritius still continues after the throes of the pandemic. Furthermore government incentivized projects such as smart cities have continued to expand and offer a sustainable smart and green future for investors complimenting new demand in such projects. Experts in the field, similarly to foreign investors have confidence in the real estate industry to continue to be a key economic driver both locally and internationally. This is due to the support of various other sectors of the Mauritius economy which include banking, tourism and IT where Mauritius continues to be one of the foremost countries in Africa setting an example of an advanced ecosystem (Afrasia Bank 2021). This serves as not only a testament to the adaptability, evolution and sustainability of the real estate industry in Mauritius but its unprecedented economic potential in the future of tropical island lifestyle and a shining example for the rest of its contemporaries.

References

Afrasia Bank. 2021. “Mauritius Is Back in Business – What to Expect for the Tourism/Hospitality and Real Estate Sectors?” Afrasia Bank Mauritius. https://www.afrasiabank.com/en/blog/expert-views/2021/mauritius-is-back-in-business-what-to-expect-for-the-tourismhospitality-and-real-estate-sectors.

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African Business. 2021. “Barrows Hotel Enterprises Closes 95-Million-Dollar Advisory Deal for Lagoon Gardens Mauritius.” 2022. African Business. https://african.business/2022/03/apo-newsfeed/barrows-hotel-enterprises-closes-95-million-dollar-advisory-deal-for-lagoon-gardens-mauritius/

Barnes Mauritius. 2021. “Trend and Evolution of Real Estate Prices in Mauritius.” Barnes International Realty. https://www.barnes-mauritius.com/en/2021/trend-and-evolution-of-real-estate-prices-in-mauritius-1320-728-0-0

Sani, Habibu, Bilkisu Adamu Aliyu, and Siddique R. Nuhu. 2021. “Assessing Renewable Energy Practice in Turaki Ali House Kaduna-Nigeria.” Real Estate Management and Valuation 29 (4): 85–96. https://doi.org/10.2478/remav-2021-0031

The New York Times. 2022. “House Hunting on Mauritius: Indoor-Outdoor Flow in the Indian Ocean,” The New York Times. https://www.nytimes.com/2021/12/15/realestate/mauritius-house-hunting.html

Wang, Bingbing. 2021. “How Does COVID-19 Affect House Prices? A Cross-City Analysis.” Journal of Risk and Financial Management 14 (2): 47.

https://doi.org/10.3390/jrfm14020047

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