Published on and written by Cyril Jarnias
New vs Old: The Mauritius Real Estate Investment Dilemma
In a dynamic market like Mauritius real estate, choosing between investing in new or old properties can present a genuine dilemma for potential buyers. This article provides a data-driven comparison between these two options, exploring the unique advantages of each with tangible data that will inform your decisions.
While new properties often offer modern infrastructure and better energy efficiency, old properties can appeal with their charm and generally more affordable prices. By diving into these comparisons, you’ll discover which option might suit your needs, whether you’re seeking optimized return on investment or an authentic living environment.
Good to Know:
The Mauritian real estate market offers different opportunities depending on whether you choose new or old properties. Carefully weigh the advantages of each option before making your decision.
Advantages of New Real Estate in Mauritius
New real estate properties in Mauritius offer numerous advantages compared to older properties, both in terms of costs and opportunities, as well as comfort.
| Criterion | New Real Estate | Old Real Estate |
|---|---|---|
| Initial Cost | Sometimes higher purchase price but often negotiable in off-plan sales; reduced notary fees; possible customization according to budget | Generally lower prices but higher additional costs (renovation, compliance upgrades) |
| Maintenance Costs | Very low in the first years thanks to recent equipment and materials under 10-year builder warranty; little to no work needed for several years | Regular expensive maintenance: repairs, electrical/plumbing upgrades, often necessary insulation improvements |
| Compliance & Safety | Strict adherence to latest seismic, thermal and electrical standards; modern fire safety devices integrated from construction | Risk of non-compliance with current standards; upgrades often essential |
Energy Efficiency
- New developments are designed to maximize thermal and acoustic insulation.
- Systematic integration of low-consumption equipment (inverter air conditioning, solar water heaters).
- Significant reduction in energy bills compared to older housing.
Tax Benefits and Government Incentives
- Flat rate: rental income tax capped at 15%.
- No wealth tax, no property tax, no capital gains tax on resale.
- Partial or total exemption possible depending on programs (PDS, RES, IRS…).
- Residence permit obtainable from $375,000 invested in eligible programs.
- Bilateral agreement avoiding any double taxation for French residents.
Contemporary Architectural Trends & Modern Equipment
- Bright open spaces with large bay windows overlooking private pools or gardens.
- Preferred use of natural materials (local volcanic stone) combined with tropical chic minimalist design.
- Integrated home automation in some high-end residences: centralized control of shutters/air conditioning/security/lighting via smartphone/tablet.
- Premium common areas: state-of-the-art fitness room, heated shared pool, secure coworking/reception spaces.
Recent Market Statistics
- In 2024–2025 the new property segment shows continuous growth despite a slight tax increase.
- Net rental yield remains higher than that offered in France.
- Marked increase in off-plan sales to foreign investors seeking tax stability and asset quality.
Numerical example:
A new “Les Chatelets Essentiels” villa offered around €590,000 already shows strong appreciation potential before delivery scheduled within twelve months—typical illustration of local dynamism.
Testimonials / Case Studies
“We chose a new PDS villa near Grand Baie: absolutely no technical surprises after delivery! The quality is impeccable compared to the previous old property we constantly renovated…” — Testimonial from French expatriate couple
“The simplified taxation was decisive. No hidden taxes or unexpected charges as one might fear elsewhere. Our manager even handles all seasonal rentals entirely!” — Belgian owner
New real estate appeals to both international investors and local buyers thanks to its enhanced legal/fiscal security and constant adaptation to contemporary lifestyles.
Good to Know:
In Mauritius, new real estate offers considerable advantages over older properties, including reduced maintenance costs thanks to modern construction materials and strict compliance with safety and energy efficiency standards. New constructions often incorporate contemporary architectural trends and modern equipment, offering superior comfort. Additionally, attractive tax measures and government incentives financially facilitate purchasing new properties, attracting more and more local and foreign buyers. In 2022, 15% growth in sales in this sector was reported, demonstrating its growing appeal. Testimonials also highlight the added value of these properties, reinforced by reduced energy expenses often observed in the first years following acquisition.
Cost and Benefit Analysis of New and Old Real Estate
| Region | Average New Price (MUR/m²) | Average Old Price (MUR/m²) |
| Grand Baie | 200,000 to 250,000 | 150,000 to 180,000 |
| Tamarin / Black River | ~236,000 | ~190,000 |
| Moka / Highlands | ~237,000 | ~170,000 |
| Center (Quatre Bornes, Curepipe) | 120,000 to 140,000 | 80,000 to 110,000 |
| South of the Island | 100,000 to 120,000 | 70,000 to 90,000 |
Renovation and Maintenance Cost Comparison
- New Real Estate:
- Low maintenance costs in the first years
- Possible builder warranty
- Compliance with recent standards, better thermal and acoustic insulation
- Old Real Estate:
- Frequent renovation work (roofing, electricity, plumbing)
- Ongoing charges often higher if property not renovated to current standards
- Possibility of obtaining financing for renovation
Tax Incentives and Financial Assistance
- New:
- Reduced notary fees (3% to 4% of price vs up to 8% for old)
- Possible tax benefits for certain off-plan programs or projects meeting specific ecological or tourist criteria
- Old:
- Fewer direct incentives but possibility of financing assistance for work depending on project nature
Impact of Wear and Tear on Valuation
An unrenovated old property depreciates more quickly over time; its value depends heavily on general condition and any work carried out.
A new property maintains its value better during the first years and generally benefits from better appreciation during initial resales.
Advantages in Terms of Rental Yield and Capital Gains
Comparative list:
- New:
- Potentially higher rents thanks to modern standards
- Increased appeal to expatriates or high-end tenants
- Less rental vacancy thanks to recent equipment
- Old:
- Lower initial investment thus interesting gross profitability after successful renovation
- Strong potential in certain highly demanded urban areas where new properties are rare
Concrete Examples Illustrating Profitability
Example: In Grand Baie, a new apartment purchased around MUR 220k/m² can rent for MUR 80–100k/month while an old apartment purchased around MUR 160k/m² may sometimes require up to MUR 1–2 million in work but can then rent for around MUR 70–85k/month. Depending on renovation level achieved, old properties may offer comparable or even superior gross profitability in certain segments.
In city center (e.g., Quatre Bornes), purchasing old housing around MUR 90k/m² then investing approximately MUR 800k in modernization often allows resale with strong capital gains if the area experiences general price increases.
Numerical Summary
- The price per square meter differential between new and old generally varies between +20% and +40%, but must be weighed against additional costs required for old properties.
- Net rental yield mainly depends on:
- Location
- Total amount invested after renovation
- Overall level of local rental market
Good to Know:
In Mauritius, the average price per square meter for new real estate is often higher than for older constructions, particularly in popular tourist and urban areas. However, renovation and maintenance costs are generally lower for new properties, thus avoiding unexpected short-term expenses. Buyers of new properties can benefit from tax incentives such as exemption from registration duties. Conversely, acquiring an old property may offer better long-term capital gains potential, despite depreciation due to wear and tear. For example, a house requiring renovation in a developing neighborhood could offer superior rental profitability following well-planned modernization work. Investors should also consider that new housing tends to attract a broader tenant clientele thanks to its compliance with modern standards.
Builder Warranties in New Mauritius Real Estate
| Warranty | Duration | Protection Offered | Additional Costs for Buyer |
|---|---|---|---|
| Perfect Completion Guarantee | 1 year | Repair of all defects reported after handover | Included in new property price |
| Two-Year Guarantee (proper functioning) | 2 years | Coverage of defects on separable equipment | Included |
| Ten-Year Guarantee | 10 years | Faults affecting structural integrity or making property unfit for use | Included |
| Construction Damage Insurance | Up to 10 years | Immediate reimbursement of repairs falling under ten-year guarantee | Covered by developer |
| Financial Completion Guarantee (FCG) | Until property delivery | Completion of works even if developer fails | No additional cost |
List of Warranties for New Real Estate Purchase in Mauritius:
- Financial Completion Guarantee (FCG): Mandatory for all off-plan programs. If developer defaults, bank or insurance guarantees necessary funds will be released to complete construction. This fully protects buyer against construction abandonment risk.
- Ten-Year Guarantee: Covers for ten years from works acceptance all hidden defects compromising building structural integrity or making it unfit for purpose. This guarantee also applies to subsequent owners.
- Two-Year Guarantee: Valid two years after acceptance, requires builder/contractor to intervene on separable elements like shutters, faucets, tiles, etc.
- Perfect Completion Guarantee: Covers for one year all defects reported during or after delivery; all faults must be repaired by builder.
Concrete Examples and Case Studies:
A buyer who discovered major water infiltration in their apartment three years after handover was able to invoke the ten-year guarantee. Structural work was fully covered without additional costs or complex legal action thanks to this protection.
In another case, recurring malfunction of several rolling shutters allowed concerned co-owners to obtain rapid replacement under two-year guarantee.
Comparison with Old Property Purchase:
- Old properties don’t automatically benefit from these extended legal guarantees. Buyer must often rely on standard contractual clauses and generally has no specific protection against hidden defects other than that provided by general Civil Code (limited legal action).
- No equivalent mechanism to FCG exists to guarantee that renovations undertaken by seller will be completed if they go bankrupt before final transfer.
Mauritian Specificities and Local Legislation:
- Since 2013, Mauritius has aligned with logic close to French law regarding builder guarantees with explicit obligation of ten-year guarantee covering architects and contractors linked to project owner.
- Construction Damage Insurance is mandatory: it allows rapid coverage without waiting for court ruling on technical party responsibilities.
- Not all off-plan projects are systematically covered by extrinsic guarantee; it’s therefore essential for every buyer to verify this point contractually before commitment.
Key Takeaways
New real estate purchases thus offer Mauritian buyers a robust legal foundation enabling either rapid repair or direct compensation against major technical risks inherent to all new construction – advantages they would lack in old property purchases where only meticulous prior expertise could protect against certain costly post-acquisition surprises.
Good to Know:
In new Mauritius real estate, buyers benefit from crucial builder warranties: the ten-year guarantee covers structural defects for 10 years, the perfect completion guarantee ensures repair of faults observed the year following works acceptance, and the two-year guarantee protects separable elements like doors or windows for two years. Unlike old properties lacking such insurance, these warranties minimize financial risks linked to unexpected repairs. For example, a new apartment owner saw a water infiltration issue resolved without additional cost thanks to the two-year guarantee. Mauritian legislation requires developers to subscribe to these insurances, thus strengthening buyer security. Comparatively, purchasing in the old market may lead to significant renovation expenses, in the absence of such protections, highlighting the attractiveness of builder warranties for new buyers.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
