Mauritius in recent past years been promoting too much on the Real Estate take it from IRS property everywhere in the coastal region and now its the time for Apartments Construction everywhere. Did any one ever realize that that Real Estate Boom is just a Bubble which happens in a cycle every now and then. If you are not watching out carefully it will doom your saving for life or even your business or even worst case the country economy.
Mauritius as such never had such a great economy on any front, even though we keep tapping our own shoulders to show ourselves as a big sharks. A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline.Well if you think we are telling you all the crazy things, you must surely walk around the areas or growing towns in the country like Quatre Bornes surroundings, you would be really surprised to see amount of new Apartments coming up and none of the apartments cost lower to 4 million for 2 bedrooms. We have seen approximately around 15-25 Ventures currently active in and around just Quatre Bornes area. Every construction area on average offers 75 apartments so we minimum have around 2000 just apartments which are going to be erected in just 12-24 months.
Now beyond these new apartments they are so many new houses which are being constructed at the rate the construction is moving, we are afraid to see some ghost houses and apartments which would be empty or just being purchased to convert Black into white. At the current growth rate in construction in 3 years down the lane we will surely have 1:1 ratio of houses for every human in Mauritius. But for your kind information most of the apartments were been bought by those who stay abroad or those white collared people to do the corporate renting….
The questions of whether real estate bubbles can be identified and prevented, and whether they have broader macroeconomic significance are answered differently by schools of economic thought, as detailed below. The financial crisis of 2007–2010 was related to the bursting of real estate bubbles around the world, which had begun during the mid 2000s.