Budget 2026-27 Unveils Housing Measures for Low- and Middle-Income Families

The Prime Minister, Dr Navinchandra Ramgoolam, announced, on 19 June 2026, a series of measures aimed at improving access to housing for low- and middle-income families, including funding for social housing infrastructure, incentives for first-time buyers and new public-private partnerships to deliver mixed-income developments.

Presenting Budget 2026-27, the Prime Minister highlighted that the Government is pursuing a fair housing policy to strengthen social resilience, stressing that access to decent housing is essential to ensuring dignity for all households.

To translate this vision into concrete action, the Government has earmarked substantial resources for social housing initiatives: provision of an allocation of Rs 2 billion for off-site infrastructure under the first phase of the 8,000 social housing project; and an additional Rs 25 million for critical drainage infrastructure at Highlands and Riche Terre.

As announced in Budget 2026-27, the Government will partner with the private sector to develop mixed-income housing projects on privately owned land. A proportion of the housing units will be reserved at preferential rates for low- and middle-income families through the National Housing Development Company Ltd and New Social Living Development Ltd. State land will also be made available for the construction of around 1,000 housing units for middle-income families under a pilot project to be carried out in partnership with private developers.

In addition, Rs 150 million has been earmarked for the implementation of a pilot scheme comprising 100 serviced plots equipped with essential infrastructure for middle-income households.

The Budget also provides enhanced tax relief for first-time home buyers. The exemption on Registration Duty for the purchase of bare land will be increased, with buyers now exempted on the first Rs 3 million of the property's value instead of Rs 2.5 million previously.

Regarding the purchase of a house or apartment, first-time buyers will benefit from an exemption on the first Rs 6 million of the acquisition price, as compared to the current threshold of Rs 5 million. Owners of agricultural land, who are currently excluded from the scheme, will now also be eligible for the first-time buyer exemption.

22 June 2026

Email: gis@govmu.org

Website: https://gis.govmu.org

Mobile App: GIS News

Topics: Housing