Interview of Somaya Joshua, Managing Executive: Commercial Property Finance
1. How do you see the evolution of the real estate sector in Mauritius over the past few years?
The real estate sector in Mauritius has experienced exponential growth in recent years. Notable examples include Moka, Telfair, Cascavelle, and Bagatelle, all of which are primely located. A clear shift is underway, with the financial and business district gradually transitioning across Ebene and Moka.
We have seen activity across all asset classes especially with a substantial increase in residential real estate, particularly within mixed-use and smart city developments. There’s been a strong shift in demand toward well-designed, well-integrated, lifestyle-oriented precincts that combine living, working, and leisure.
Across these segments, Absa remains actively involved in supporting developers and investors through tailored solutions that unlock value in a market that continues to evolve.
2. What are, in your opinion, the main obstacles or uncertainties currently weighing on investment decisions in the real estate sector?
Policy shifts combined with global geopolitical tensions and broader macroeconomic pressures have led to short-term uncertainty, driving the reassessment of project feasibilities as the market recalibrates.
Despite these headwinds, we remain confident in the resilience and long-term fundamentals of the Mauritian real estate market and continue to work closely with our partners as we navigate the current challenges and contribute to sustainable, strategic growth across the sector.
3. What trends are you seeing in real estate financing? Is there growing demand for specific types of loans?
Real estate financing is becoming increasingly tailored and strategic, reflecting a more sophisticated and diversified investor base. At Absa Commercial Property Finance, we pride ourselves on delivering bespoke, structured financing solutions that align closely with our clients’ strategic objectives and is key to how we differentiate ourselves.
There is growing demand for structured loans that accommodate phased developments, especially in mixed-use precincts, serviced residences, and integrated lifestyle projects. Developers are increasingly seeking flexible funding models that adapt to the evolving realities of the development cycle, whether in development or holding as long term investment. This is where early engagement becomes crucial, allowing us to conduct feasibility reviews and incorporate risk mitigation strategies from the outset.
We’re also seeing a notable rise in demand for sustainability-linked financing. As ESG considerations move to the forefront for both developers and investors, there is heightened interest in green loans tied to measurable outcomes, such as green building certifications (EDGE or LEED), energy efficiency standards, and broader environmental performance metrics.
4. Are you observing any changes in investor behaviour, such as a preference for renting over buying?
We anticipate that Mauritius, much like more mature markets, may begin to see a stronger inclination toward rental models. From a lifestyle perspective, both individuals and corporates are showing growing appetite for flexibility over long-term ownership. Developers, too, are beginning to adapt, with more build-to-rent (BTR) and serviced apartment models coming into play.
This shift doesn't suggest a decline in ownership demand altogether, but rather a diversification of how real estate is being consumed and monetised. Investors are increasingly evaluating yield stability, tenant profiles, and occupancy risks as part of their decision-making, signalling a more institutional, income-oriented approach to the market.
5. What are clients’ main concerns at the moment?
Real estate developers and asset owners in Mauritius are currently navigating a complex mix of economic nuances that influence longer term investment thesis’.
Clients are becoming more selective, seeking out well-structured, demand-led developments that are financially viable and future-ready.
In addition, there’s a heightened focus on long-term value creation, sustainability, and adaptability. Clients want to ensure that projects are future ready when considering energy efficiency, climate resilience, and underlying fundamentals.
6. Is Absa planning to further support projects related to sustainability or the green transition?
Sustainability is a core pillar of Absa’s strategic vision. Our financing solutions increasingly integrate sustainability linked features as we remain committed to staying in lock-step with the communities in which we operate.
As a certified Top Employer in Mauritius and Africa, we continue to invest in talent to drive innovation and sustainable practises ensuring that we remain at the forefront of the green transition.
7. What are Absa’s strategic priorities for Mauritius in the coming years?
Real estate remains a key strategic imperative for Absa in Mauritius that includes expanding our footprint in real estate financing, promoting inclusive housing solutions, and driving sustainable development across the sector. We aim to deepen collaboration with developers, investors, and policymakers to foster a resilient, diversified, and future-ready property market.
8. Financing for mixed-use projects (office, retail, residential) is gaining renewed interest. Is this trend relevant for Mauritius? Why?
The trend toward mixed-use developments is one of the primary growth drivers in Mauritius’ real estate landscape. These projects have gained significant traction, particularly through the success of smart city initiatives that are reshaping urban living across the island. Precincts such as Moka, Telfair, Cascavelle, and Bagatelle are clear examples of how integrated, lifestyle-oriented environments are transforming the way people live, work, and interact.
This shift is largely driven by changing end-user preferences and landowners and master planners in Mauritius are responding by repositioning their assets to accommodate these integrated developments. For financial institutions like Absa, this presents an exciting opportunity. Mixed-use projects offer diversified revenue streams, greater resilience against market fluctuations, and long-term urban value creation. Through bespoke and flexible funding solutions, Absa Commercial Property Finance actively supports well-conceived, future-ready developments that align with the evolving needs of both communities and investors.
9. As a woman leader in a sector that remains largely male-dominated, what message would you like to share in Mauritius, especially with young talent in the financial and real estate sectors?
Representation matters. The sector is evolving, and diverse leadership is essential for innovation and inclusivity. Your perspective is valuable, your voice is needed, and your potential is limitless. Seek mentors, sponsors, and lean on your peers. And when it's your turn, pay it forward! Research suggests that there is a multiplier effect on performance correlated to the advancement of women so bring your full self – you’ve been given a seat at the table for a reason.
10. The notion of “risk” is evolving. In your view, what new risks should be anticipated – whether geopolitical, climatic, or economic – when it comes to real estate financing?
The risk landscape in real estate is indeed evolving and requires a bespoke approach to risk management. Climate-related disruptions are becoming increasingly material: for instance, while Mauritius contributes less than 0.01% of global emissions, it faces some of the highest climate vulnerabilities in the region including flash floods, beach erosion and rising sea levels. These climate risks directly impact the long-term viability of developments across Mauritius and other African coastal and urban regions, where low emissions coexist with high exposure to climate shocks.
Digitization of real estate transactions also expects deliberate risk mitigation strategies in relation to cybersecurity and data privacy, which can undermine operational resilience and trust if not properly managed.
Enhanced due diligence that includes, scenario analysis, and collaboration with stakeholders to build resilience and ensure sustainability in the real estate sector is required.
