Published on and written by Cyril Jarnias
Vacoas-Phoenix is quietly establishing itself as one of the most interesting real estate markets in Mauritius. Far from the heavily publicized coastline, this large city on the central plateau is attracting an increasing number of Mauritian families, expatriates, and yield-seeking investors looking for stability and a more temperate living environment than on the coast.
The real estate market is evolving rapidly due to several factors: accelerated urban development, the completion of major public projects, the arrival of the Metro Express, and the rise of short-term rentals (Airbnb type). It is essential to understand these dynamics before any investment, whether for buying a house, an apartment, land, or for a rental project.
This article provides an in-depth overview of the market, prices, prospects, and the rules of the game – especially for non-citizens – to invest in real estate in Vacoas-Phoenix with a clear, data-driven vision.
A hub on the central plateau that ticks many boxes
Vacoas-Phoenix is one of the largest urban areas in Mauritius, with approximately 100,000 to 105,000 inhabitants. Located at an altitude of around 400 meters on the central plateau, it offers a cooler and less humid climate than coastal areas, with hot summers around 28°C and mild winters around 24°C. This climatic specificity, combined with the lack of a coastline, naturally steers the market towards primary residences and long-term residential use rather than pure vacation properties.
This is the number of stations served by the Metro Express tram line connecting Phoenix to Port Louis.
The urban landscape remains marked by established residential neighborhoods like Phoenix, Glen Park, Forest Side, Beau-Bassin, or St Paul, mixed with industrial and commercial zones. The Phoenix Industrial Zone concentrates part of the manufacturing and logistics activity (brewing, agri-food, cosmetics, textiles), which strengthens the city’s attractiveness for workers and SMEs.
The city of Vacoas-Phoenix relies on a natural and family-friendly living environment, with sites like the Mare aux Vacoas, the trails of Sophie Nature Walk, the Domaine des 7 Vallées, and the Mondrain Reserve. These spaces, complemented by leisure facilities (Gymkhana Club, Sodnac Wellness Park) and commerce (Jumbo Phoenix, Phoenix Mall, covered market), form an attractive foundation for residential demand, prioritizing nature and services over resort activities.
A booming real estate market, driven by local and regional demand
Various sources converge: the real estate market in Vacoas-Phoenix is in a phase of sustained growth. It’s described as a market in “full boom“, with increasing demand for housing as well as for commercial and industrial space.
The growth of Vacoas-Phoenix is explained by two main factors. First, strong demographic growth making it one of the most populous areas in the country. Second, its central economic role, with industrial zones, businesses, public services, schools, and proximity to other towns, attracting an active middle class looking for housing near jobs and infrastructure.
Accessibility via the M1 highway, the bus network, and the Metro Express further enhances this attractiveness. Added to this are major urban projects – like the Vacoas Urban Terminal – and private residential developments (Garden Court, Parkside) that boost land value in the center and surrounding areas.
The result is a highly segmented market: single-family homes on large plots in sought-after neighborhoods, contemporary villas with pools, modern apartments in secure complexes, land for residential or commercial development, and even industrial opportunities near the Phoenix zone.
Price levels: how much does a property cost in Vacoas-Phoenix?
Available data allows for drawing a relatively precise price grid, even though heterogeneity remains strong between average products, high-end villas, and strategic land.
On average, house prices in Vacoas-Phoenix hover around 8.5 million Mauritian Rupees (MUR). For Phoenix specifically, the average rises to 9.6 million MUR. Expressed per square meter, a range of 30,000 to 45,000 MUR/m² is typical for well-located apartments and houses.
Here is a summary of average prices by type and number of bedrooms in Vacoas-Phoenix (Properstar data):
| Type / Feature | Average Price (MUR) | Average Price / m² (MUR) |
|---|---|---|
| House (all) | 8,500,000 | — |
| 2-bedroom house | 3,900,000 | 62,727 |
| 3-bedroom house | 8,950,000 | 44,500 |
| 4-bedroom house | 13,300,000 | 40,000 |
| 5+ bedroom house | 12,250,000 | 41,719 |
| Townhouse / Duplex | 7,600,000 | 25,833 |
| Villa | 22,000,000 | 54,348 |
| Houses in Phoenix (all) | 9,600,000 | — |
| Villas in Phoenix | 10,800,000 | 32,895 |
These figures reveal several interesting points. The price per square meter tends to decrease with property size, a classic feature of markets where large plots remain relatively available. Villas are well above the average, both in absolute value and price/m², reflecting a high-demand luxury segment.
The maximum price in millions of Mauritian Rupees for an exceptional property exceeding 1100 m².
For land, examples range from 4.3 million MUR for 416 m² to 40 million MUR for over 4,000 m², the latter being open to non-citizens. This shows that well-located land, especially on commercial axes or areas with development potential, is starting to appreciate strongly.
A medium-term upward price trend
Available historical data for Phoenix indicates a fundamentally upward trend. Between 2015 and 2024, the average house price there rose from 6 million to 9.6 million MUR, with a peak of 15 million MUR in 2022. In other words, an increase of over 60% in less than ten years, despite a correction after the 2022 peak.
After strong post-2015 growth fueled by the economy, low interest rates, and the appeal of real estate, the market consolidated in 2023-2024 on a more sustainable basis. However, the long-term trend remains upward, especially for central and well-served properties.
For an investor, this means that the bulk of the price explosion has passed, but the potential for appreciation remains real, especially where new structuring projects (tram, urban terminal, new residences) are underway.
Long-term rental: modest yields but a deep market
Classic rental investment in Vacoas-Phoenix relies mainly on local residential demand and that of active expatriates. Average rental figures give a first glimpse:
| Property Type | Average Monthly Rent (MUR) |
|---|---|
| 1-bedroom apartment – center | 12,000 |
| 1-bedroom apartment – outskirts | 10,667 |
| 3-bedroom apartment – center | 23,333 |
| 3-bedroom apartment – outskirts | 14,667 |
The global indices for Vacoas outlined by a data aggregator are revealing:
| Indicator | Value |
|---|---|
| Price-to-Income Ratio | 17.62 |
| Mortgage as % of Income | 130.97% |
| Loan Affordability Index | 0.76 |
| Price-to-Rent Ratio – city center | 46.08 |
| Price-to-Rent Ratio – outside center | 52.88 |
| Gross rental yield – center | 2.17% |
| Gross rental yield – outside center | 1.89% |
| Average monthly net salary | 33,333 |
| Mortgage interest rate (20-year fixed) | 4.25% |
With a price‑to‑rent ratio above 45, the gross yield comes out around 2% to a little more, sometimes up to 3% for certain products. This is below the Mauritian average (approximately 3.07%), already considered modest.
An apartment costing 6 million MUR rented for 21,000 MUR per month generates a gross yield of about 4.2% before expenses and taxes. However, many high-priced properties rent at lower ratios, explaining an average market yield often below 3%. Thus, the Mauritian real estate market is primarily geared towards capital appreciation rather than generating high cash flow.
This low gross profitability is partly explained by the price level relative to local incomes (high Price-to-Income ratio) and a certain rigidity in rents. For a long-term investor, the key is to select properties where the rent-to-price ratio is less unfavorable: functional apartments near transport, well-located 3-bedroom houses, or small rental complexes.
Airbnb and short-term rentals: a new lever for yield
Alongside classic residential rentals, short-term rentals like Airbnb have gradually taken hold in Vacoas-Phoenix. The market is still small compared to coastal tourist areas, but it presents characteristics that interest investors seeking better returns.
According to an AirROI analysis covering the period May 2024–April 2025, there are 58 active listings of the Airbnb type around Vacoas-Phoenix. The market is lightly regulated at this stage and no listing appears officially licensed, indicating a phase that is still informal but expected to become more structured.
Apartments or condos represent over half of the total listed housing supply.
Average performance breaks down as follows:
| Performance Tier | Monthly Revenue (USD) | Occupancy Rate | ADR (Avg. Nightly Rate, USD) |
|---|---|---|---|
| Top 10% (best-in-class) | ≥ 2,042 | ≥ 84% | ≥ 84 |
| Top 25% (strong performers) | ≥ 1,130 | ≥ 64% | ≥ 54 |
| Median | ~ 668 | ~ 33% | ~ 37 |
| Bottom 25% | ~ 324 | ~ 18% | ~ 25 |
In high season (May, October, November), a median property generates about 1,278 USD in monthly revenue with an occupancy rate around 44% and an ADR of about 50 USD. The low season (February, April, December) drops to 714 USD in monthly revenue with an occupancy rate just under 40%.
94% of travelers are international clients, with strong representation from French and British visitors.
For an investor, this opens several avenues. First, the possibility of targeting yields higher than long-term rentals by aiming for a careful positioning (Wi‑Fi, equipped kitchen, free parking, contemporary decor). Second, the interest in positioning within the most in-demand segments: 1 to 2 bedrooms, capacity for 2 to 4 people, proximity to the Metro Express, shopping centers, and parks.
Neighborhood focus: where to invest in Vacoas-Phoenix?
The municipality encompasses a set of sub‑neighborhoods and agglomerations with varied profiles. Among the areas mentioned in the data:
– Phoenix
– Vacoas
– Belle Terre
– Camp Fouquereaux
– Cinq Arpents
– Clairfonds
– Glen Park
– Henrietta
– Hermitage
– Highlands
– Hollyrood
– La Caverne
– La Marie
– Mesnil
– Quinze Cantons
– Réunion
– Solférino
– St Paul
– Visitation
Added to these are areas described in other sources such as Forest Side, Glen Park, and Beau-Bassin.
The Phoenix area benefits from exceptional accessibility due to its direct connection to the Metro Express, immediate proximity to Jumbo Phoenix, Phoenix Mall, and the industrial zone, as well as new residential projects. It also concentrates the most strategic land, particularly commercial plots near the industrial zone and Royal Road, making it a prime target for investment.
More residential neighborhoods like Glen Park, La Caverne, Henrietta, or Highlands offer houses on generous plots, often with gardens and sometimes views of the Moka range. They attract more local middle and upper classes, as well as expatriates seeking tranquility, with long-term appreciation potential.
The investor must choose between dynamic centrality (Phoenix center, metro, market, future developments) and a greener living environment (residential outskirts, proximity to Mare aux Vacoas and trails). These two options cater to different demands but can be complementary in a portfolio strategy.
Structuring projects: the Urban Terminal, Garden Court, Parkside
One of the major elements for the future evolution of the market is the “Vacoas Urban Terminal Project”. Launched via a call for proposals from the Ministry of Local Government and Disaster Risk Management, this project aims to transform the heart of Vacoas into a modern multimodal hub, connecting buses, taxis, and the Metro Express in a mixed-use complex with a market, fair, parking, and iconic buildings.
The government proposes a 60-year lease on state land for the construction of a new terminal. Developers must finance and carry out the project, integrating sustainability criteria like natural ventilation, solar energy, and universal accessibility, in exchange for a preferential annual rent.
Even if this project primarily targets the center of Vacoas, its impact will be felt across the entire municipality: strengthening its role as a hub, upgrading the urban image, improving mobility, and revaluing nearby land. One can reasonably anticipate price appreciation within the influence perimeter of the future terminal.
Concurrently, two private projects are densifying and modernizing Phoenix:
Discover two innovative real estate projects located in the heart of Phoenix, designed to meet the needs of urban professionals and investors.
A residence of about 80 apartments and penthouses, ideally located near Sodnac Wellness Park, shops, and transport (bus, Metro Express). Construction ongoing, targeting urban professionals and investors.
A mixed-use complex with apartments, penthouses, and offices for rent or sale. Includes shops, restaurants, a wellness center, gym, and pool. Delivery announced for 2023, illustrating a more vertical and urban Phoenix.
These programs illustrate a transformation: the shift from a predominantly suburban city to a more dense center, with an offering of modern apartments suited for young couples, professionals, and expatriates, and perfectly calibrated for furnished long-term or short-term rentals.
Regulations for non-citizens: what to know before buying
For foreign investors, Mauritius offers an attractive but regulated framework. The rules applicable to Vacoas-Phoenix are the same as for the rest of the territory: in principle, a non-citizen cannot freely purchase residential property outside the schemes approved by the Economic Development Board (EDB). The main schemes are:
– Integrated Resort Scheme (IRS)
– Real Estate Scheme (RES)
– Property Development Scheme (PDS)
– Smart City Scheme (SCS)
– Invest Hotel Scheme (IHS)
– Ground+2 Scheme (apartments in buildings with 2 or more levels above ground floor)
An investment of at least USD 375,000 in an IRS, RES, PDS, or Smart City grants a 20-year permanent residence permit for the investor, spouse, and children under 24. In contrast, the Ground+2 option, with a minimum investment of about USD 130,000, does not grant permanent residence rights.
Since late 2023, a limited opening had allowed certain foreign residents to acquire a property outside a scheme for over USD 500,000, but this regulatory window has been closed. The logic therefore remains the same: for a non-citizen who is not already a holder of a residence or occupation permit, investment will go through an EDB scheme.
Since December 2024, non-citizens purchasing real estate in Mauritius must pay at least 85% of the price in Mauritian Rupees, after a transfer and conversion of foreign currency (USD, EUR…). Up to 15% of the price can be settled directly in foreign currency. For a purchase exceeding USD 750,000, the portion above this threshold can be financed by a local loan, while the first USD 750,000 must come from equity transferred from abroad.
Financing of up to 70% of the price is possible for off-plan properties (VEFA) and up to 80% for completed properties, through Mauritian banks (MCB, SBM, AfrAsia, Absa…). Interest rates for non‑residents are generally higher than for citizens, with a minimum of about 5 to 7% depending on the case. For a non-resident, the mortgage amount rarely falls below EUR 100,000.
Costs, taxation, and net profitability: a calculation to refine
Mauritius does not levy tax on real estate capital gains, no wealth tax, nor an annual property tax on built properties. However, registration duties and certain fees become significant, especially for foreigners and within regulated schemes.
On the buyer’s side, costs include at least: at least
Percentage of registration duties applicable, which will increase to 10% from July 2026 for certain acquisitions under EDB schemes.
Overall, transaction costs for the buyer are often between 8.5% and 11% of the price, and those for the seller around 7%, meaning a round-trip cost (purchase + resale) close to 15.5 to 18%. This imposes a rather long holding horizon to amortize these fees.
Rental income is integrated into income tax, subject to a progressive scale (0%, 10%, 20%) since 2025. The effective rate depends on the taxpayer’s overall income. Companies, on the other hand, pay a flat 15% tax on their profits.
Once these elements are taken into account, the net profitability of a purely rental investment in Vacoas-Phoenix will rarely be high, unless several levers are combined: a well-negotiated purchase price, positioning in a performing short-term rental segment, or long-term appreciation in an area of projects (Urban Terminal, Metro Express, mixed-use developments).
Financing, affordability, and debt risk
With a price-to-income ratio above 17 and mortgage payments representing on average over 130% of income, homeownership affordability for local households remains a challenge. Average net salaries hover around 33,000 MUR, while theoretical monthly loan payments simulated on classified platforms often exceed 80,000 MUR for properties between 12 and 13.5 million MUR.
Simplified table of some simulated monthly payments:
| Property Price (MUR) | Simulated Monthly Payment (MUR/month) |
|---|---|
| 2,200,000 | 14,490 |
| 3,550,000 | 23,381 |
| 4,900,000 | 32,272 |
| 9,000,000 | 59,275 |
| 13,500,000 | 88,912 |
| 19,000,000 | 125,135 |
| 25,000,000 | 164,651 |
| 38,000,000 | 250,269 |
Even if these payments depend on interest rate and duration assumptions, they show that access to homeownership in medium and higher ranges requires either a high income level or a significant personal contribution. This limits the solvent clientele for certain properties but conversely strengthens rental demand, especially for well-positioned products (2–3 bedroom apartments near transport and shops).
For a foreign investor, market figures indicate that the capacity of the local clientele to absorb price increases has solvency limits. It is therefore crucial to select properties carefully and precisely calibrate the offering (size, rent level, standard) to avoid prolonged rental vacancy periods.
Possible investment strategies in Vacoas-Phoenix
From this panorama, several strategies emerge for an investor wishing to position themselves in Vacoas-Phoenix.
A first approach is to target long-term appreciation on well-located land or houses. Listings for land (from 400 m² to over 4,000 m²), some accessible to non‑citizens, suggest potential for future development (subdivision, small residential complexes, R+2 buildings) when demand justifies it further, especially around the Metro Express and future urban hubs.
New or recent apartments in projects like Garden Court or Parkside, thanks to their privileged location (Phoenix center, proximity to Sodnac Park, metro access) and their standard, are suited for high-end furnished rentals. This strategy targets professionals, expatriate families, or medium-term relocations. It allows for higher rents per square meter and better liquidity upon resale, although gross yield remains moderate.
A third path exploits the growing potential of short-term rentals. The Airbnb data shows that a small number of well-managed properties can generate over 2,000 USD per month with occupancy rates above 80%. Positioning a modern 2-bedroom apartment, ideally near Phoenix or Vacoas center, with parking, quality Wi‑Fi, contemporary decor, and professional management, can create a product above the market median. Current traveler profiles – largely international, often young, French or English-speaking – are receptive to this type of product.
Prioritize buying 3 to 4 bedroom houses in the established residential neighborhoods of Quatre-Bornes to rent them long-term to Mauritian families. The gross yield is moderate, but the vacancy risk is limited thanks to the city’s central position in the Plaines Wilhems and the density of its school, commercial, and transport services.
Role of local agencies and on-the-ground expertise
The abundance of agencies in and around Vacoas-Phoenix reflects market activity. Among the structures mentioned, some are very close to the ground, such as RPC Estate Agency (Carreau Laliane Rd), Carson Real Estate (Royal Road Mesnil Phoenix), IslandMove Properties (Thompson Rd), La Casa Properties (Main Road Mesnil, next to SBM Phoenix, well-rated on Google), or big names like BARNES or PAM Golding that cover the entire island.
Real estate professionals facilitate access to less visible properties (off-market, discreet sales), help refine prices according to micro-location, and assist non-residents with administrative and banking procedures. Some agencies specialize in the high-end segment and international clientele.
For foreign investors, advice from a lawyer specialized in Mauritian real estate law and a notary is also essential, especially to ensure compliance with the Non-Citizens (Property Restriction) Act, EDB requirements, MUR financing rules, and short and long-term tax implications.
A city in transition, between densification and urban challenges
Like any fast-growing city, Vacoas-Phoenix must contend with challenges: urban sprawl on the periphery, pressure on road and sanitation infrastructure, reduction of agricultural land, lack of green spaces and local services in some new subdivisions. Voices are being raised calling for more structured urban planning, more soft mobility (wide sidewalks, bike lanes), and less car dependency.
The development of projects like the Urban Terminal, mixed-use complexes in Phoenix center, and the expansion of the Metro Express indicates a trend towards densification and functional mix (housing, commerce, offices, leisure). This evolution suggests considering strategic investments in areas destined to become the new central hubs of the city.
For an investor, the key will be to position themselves within this dynamic rather than endure it: identify sectors that will benefit directly from transport improvements, public space requalification, or the creation of new commercial hubs; prioritize properties that meet both current needs (functional housing, accessibility, services) and future expectations (energy efficiency, outdoor spaces, connectivity).
Conclusion: Vacoas-Phoenix, a market for patient and strategic investors
Investing in real estate in Vacoas-Phoenix has nothing to do with a speculative bet on a beachfront or an ultra‑luxurious residence on the west of the island. It’s a more subtle game, involving reading the trajectories of a large inland city in full structuration, anticipating the effects of infrastructures like the Metro Express or the future Urban Terminal, and dealing with a precise regulatory environment, especially for non‑citizens.
Despite strong price increases over the last decade, modest gross rental yields, and high transaction costs, the Mauritian real estate market has solid assets. Residential demand is deep, Port-Louis is central to the economy, and the market is diversifying between residential, commercial, and industrial. The rise of short-term rentals also offers new opportunities. Success relies on a patient approach, precise information, and a rigorous choice of investment products.
Vacoas-Phoenix is not a “postcard” destination: it’s a real Mauritian city, vibrant, multicolored, crossed by flows of workers, families, and now international travelers passing through. Understanding this reality is already a decisive step towards a successful investment.
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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.
