Two Years On, Mauritius Youth Still Locked Out of Property Market

When the Alliance du Changement swept to power in Mauritius's November 2024 general elections, it carried with it a wave of hope among young voters. Two years into the mandate, however, those aged 18 to 35 say the promise of greater purchasing power has not translated into any real path to owning a home.

The government introduced several measures that brought some financial relief. Young workers between the ages of 18 and 28 received an income tax exemption. The non-taxable income threshold was also raised, meaning individuals earning under Rs 1,000,000 a year pay no income tax at all. On top of that, free public transport, including school vans, and free home internet access helped ease monthly household bills for many families.

But critics argue these measures, while welcome, do not address the structural problems that keep property out of reach for most young Mauritians.

Under Mauritius's Wage Adjustment Regulations, the legal salary framework that sets minimum pay scales across the workforce, entry-level earnings remain far below what is needed to secure a mortgage on today's property market. A young worker without a tertiary qualification earns the national minimum wage of Rs 17,745, rising to Rs 18,380 once the mandatory compensation allowance of Rs 635 is added. A diploma holder starts on a legally set scale of Rs 24,245. A degree or licence holder begins at around Rs 26,245, reaching approximately Rs 26,880 with the compensation allowance included.

Statistics Mauritius, the government body responsible for national data, points to median salary figures that paint a broader picture, but analysts say the gap between average wages and property prices in Mauritius remains vast. Land and housing costs, particularly in urban areas around Port Louis and the west coast, have continued to rise well ahead of wage growth.

What this means: For a generation that was told change was coming, the arithmetic of homeownership has barely shifted. A young degree holder earning under Rs 27,000 a month faces mortgage repayments that lenders typically require to stay below one third of gross income. That ceiling leaves most first-time buyers in their twenties and early thirties unable to qualify for a loan large enough to purchase even a modest apartment. Free bus rides and a tax exemption improve day-to-day cash flow, but they do not close a gap measured in millions of rupees between savings capacity and asking prices. Without targeted housing schemes, subsidised land access or reform of property regulations, the core problem remains untouched. The Alliance du Changement still has time left in its mandate, but for young Mauritians watching property prices move further out of reach, that window is narrowing.

Source: ION News