Housing Finance in Mauritius


This profile is also available in French here.

To download a pdf version of the full 2019 Mauritius  country profile, click here.

The Republic of Mauritius is a small island nation, with a population of 1 265 637 people as at December 2018 and 381 500 households in 2017. Mauritius has a sound political and economic environment and ranks first in Africa in terms of governance. This is supported by the fact that the country’s GDP increased from Rs457 201 million (US$12 803 million) in 2017 to Rs482 210 million (US$13 504 million) in 2018. Further, there was a noticeable decrease in the country’s unemployment rate from 7.1 percent to 6.9 percent. Mauritius is ranked first in Africa in terms of economic freedom and first in the Sub-Saharan African region in terms of the ease of doing business in the country. Although the country has had a strengthening economy, structural challenges prohibit the country’s desire to become a high income economy.

The country’s financial services sector significantly contributes to the GDP. This sector is dominated by banks, which hold 83 percent of the total assets of the sector. The use of modern settlement systems has strengthened the sector’s basic infrastructure and enhanced financial access. The housing and construction investment sectors remained buoyant powered by an increase in bank credit for housing purposes.  However, the country’s mortgage market faces constraints which challenge access to mortgages and affect affordability.

On the other hand, the Gini-Coefficient has demonstrated a shift of households towards higher income groups, which suggests that this income band has improved access to mortgage finance. State-initiated housing programmes have been devised to improve the housing affordability of low-income households.  Further, government budgets have made provisions for middle-income families  by introducing tax exemptions which seek to improve their access to housing. The government of Mauritius is developing a blueprint for the country’s financial services sector which promises to positively impact on housing markets through the creation of employment opportunities.

Find out more information on the housing finance sector of Mauritius, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

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