The Impact of Foreign Real Estate Investment on Land Prices: Evidence from Mauritius

16 Pages Posted: 13 Nov 2017

See all articles by Chris Brooks

Chris Brooks

University of Reading - ICMA Centre

Matthew John Lamport

University of Mauritius

Kesseven Padachi

University of Technology, Mauritius (UTM)

Vinesh Sannassee

University of Mauritius

Keshav Seetah

University of Mauritius

Boopen Seetanah

University of Mauritius

Date Written: November 2017

Abstract

This paper examines the impact of foreign real estate on land prices in Mauritius. Using a panel dataset comprising price, quantity and other information for a variety of luxury villas and apartments, we show that the price of land paid by locals has been pushed up by a modest 4–22% in total as a result of these developments. We also examine the determinants of the prices of the dwellings in these schemes, finding that they are strongly related to the sizes of the plots, whether they have ocean views, and the desirability of the region in which they are sited, although there remains considerable unexplained heterogeneity.

Suggested Citation

Brooks, Chris and Lamport, Matthew John and Padachi, Kesseven and Sannassee, Vinesh and Seetah, Keshav and Seetanah, Boopen, The Impact of Foreign Real Estate Investment on Land Prices: Evidence from Mauritius (November 2017). Review of Development Economics, Vol. 21, Issue 4, pp. e131-e146, 2017, Available at SSRN: https://ssrn.com/abstract=3069198 or http://dx.doi.org/10.1111/rode.12316

Chris Brooks (Contact Author)

University of Reading - ICMA Centre ( email )

Whiteknights Park
P.O. Box 242
Reading RG6 6BA
United Kingdom
+44 118 931 82 39 (Phone)
+44 118 931 47 41 (Fax)

Matthew John Lamport

University of Mauritius

Kesseven Padachi

University of Technology, Mauritius (UTM) ( email )

La Tour Koenig
Pointe-aux-Sables
Pointe aux Sables
Mauritius

Vinesh Sannassee

University of Mauritius

Reduit, 80837
Mauritius

Keshav Seetah

University of Mauritius

Reduit, 80837
Mauritius

Boopen Seetanah

University of Mauritius ( email )

Reduit, 80837
Mauritius

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