The dream of building one's own home in Mauritius is becoming increasingly expensive. The construction cost index for 2026 stands at 9%, a significant increase from previous years. This rise is attributed to various factors, including the cost of land, preparation and financing costs, and construction expenses. Yaceer Pondor, director of Newbuild Contractors Ltd, notes that the price of land has surged in recent years, with an eight-perch plot costing between Rs 2.5 million and Rs 3 million.
The cost of acquiring a plot of land is just the beginning. Additional expenses include architect and engineer fees, permit costs, and loan application fees. Kentish Moorghen, CEO of Prime Pillar Group, highlights that financing is a major obstacle, as borrowers must provide sufficient guarantees and demonstrate a capacity for repayment over several years. As a result, some households are forced to adjust their project scope, opt for cheaper materials, or phase their construction plans.
Material costs are also subject to fluctuations, with some prices increasing significantly. For example, cement prices rose by 5% at the beginning of 2026, while ready-to-use concrete increased by 4% in the first quarter and 1.6% in the second quarter. Aluminum joinery prices have also risen by 8-8.6% over the past year, with a 3.9% increase at the start of 2026. In contrast, tile and granite prices have decreased by 0.2-1.2%, and steel bar prices have dropped by 3.5-3.7% over the past year.
The COVID-19 pandemic and subsequent geopolitical tensions have contributed to the increased costs, as Mauritius relies heavily on imports for materials and finishing products. These fluctuations have a ripple effect on the overall cost of construction projects. Yaceer Pondor estimates that the construction cost index rose by over 4% in 2025 and 9% in 2026.
Another significant challenge facing builders is the scarcity of skilled labor. Ajay Subrun, of Concrete Deal Ltd, notes that the lack of qualified workers, such as masons, tilers, and plumbers, can slow down construction and disrupt the initial schedule. Yaceer Pondor adds that the daily wage for a mason is around Rs 2,000-2,500, which is a significant expense for many households.
The shortage of skilled labor is not the only issue; the recruitment of foreign workers is also a complex process. Yaceer Pondor criticizes the lengthy and cumbersome procedures for obtaining permits and recruiting foreign workers, which can lead to delays and increased costs. Kentish Moorghen emphasizes that a well-coordinated team is essential for a successful construction project, and delays can have a ripple effect on the entire project.
The cumulative effect of these challenges is that many construction projects are being interrupted or abandoned due to unforeseen cost increases. Kentish Moorghen, as a Chartered Valuation Surveyor, has witnessed firsthand the difficulties faced by homeowners and entrepreneurs in navigating these complexities. As the construction industry continues to evolve, it remains to be seen how stakeholders will adapt to these changing circumstances.
Key points
- The construction cost index in Mauritius has risen by 9% in 2026.
- The cost of land in Mauritius has increased significantly, with an eight-perch plot costing between Rs 2.5 million and Rs 3 million.
- The scarcity of skilled labor and complex recruitment procedures for foreign workers are major challenges facing the construction industry in Mauritius.
