Demand for housing in Mauritius is booming
Article: Lifestyle and permanent residency attract foreign buyers to Mauritius.
The real-estate market in Mauritius is expected to experience a construction boom in 2013 according to many experts. The government believes that real-estate sector would be one of the main drivers of economic growth this year. The robust tourist industry and the political stability will support the boom and some sugar estates may well convert their property into retail or residential developments.
Mauritius real estate market analysis
The residential property market in Mauritius is often used as an example of the ability of the country to overcome the effects of the global financial crisis – and the demand for one of the country’s biggest housing projects, Azuri, appears to substantiate this claim.
Residential real estate in Mauritius
- The country is popular with buyers from France and demand has strengthened because of new tax laws in France.
- The second biggest buying group is investors from South Africa.
- Many of these buyers look for prime locations on the beachfront in the northeastern and southwestern coasts where they can live around the year.
- The lifestyle and political stability (making for safer investment) are now critical to the investment decision – these types of properties can be easily rented out.
- The highest capital growth is found in the price bracket of USD $400,000 to USD $1 million.
- Some buyers are looking to relocate while others are looking for income properties.
- There is some demand for properties over USD $1 million but availability is limited.
One of the best selling resort schemes is Azuri, which is beautifully located on a beachfront location on the coast in the northeast.
- Construction started in May 2012 and 279 residences as well as a 5-star hotel will be completed by November 2013.
- Almost 40% of buyers come from South Africa and are now looking at Mauritius property as an attractive investment and diversification outside South Africa.
- The Integrated Resort Scheme (IRS) also offers foreigners the chance to become permanent residents if they buy a property with a price of USD $500,000 or more. Under the scheme, there are no restrictions on the acquisition of property by foreigners
- The company says that the average price for an IRS residential unit on the island is USD $1.6 million. Azuri offers units from USD $500,000 to USD $800,000.
- The development contains the first international school in Mauritius to cater to the education of the children of long-term residents.
- Buyers will receive freehold property, the benefits of a 5-star hotel as well as a guaranteed 5% yield on their investment.
The bottom line
The appeal of an island lifestyle, sunshine around the year and warm seas makes it easy to see why many people are choosing to live permanently in Mauritius.
The country has developed considerably with an upgrade to the road network, a new shopping mall and cyber city. And a new airport is under construction to accommodate a much larger number of tourists. In addition, property is much more affordable than other island resorts like the Maldives.