The basics show there’s money to be made if you have the smarts to invest in Mauritius residential property developments. Demand for housing in this country of 1.3 million is high, considering its remarkable growth in homeownership.
A Mauritius bank study showed that as of 2011, 89 per cent of the country’s households own their homes. This clip represents a significant increase from the 76 per cent homeownership rate posted on the island in 1990. Notably, these comparative Mauritius homeownership rates by themselves already exceed the world average estimated at 74.1 per cent.
What’s even more significant, the increase in the country’s home demand is coming not only from Mauritian locals. Wealthy foreign homebuyers also account for much of the gains, thus enriching potential ROI from residential properties.
Foreign homebuying in Mauritius started picking up steam in 2001. This was when the country introduced the Integrated Resort Scheme (IRS) allowing non-citizens’ real estate purchases on the island. Mauritius has approved 11 IRS projects including the highly successful Mont Choisy Le Parc where 2Futures delivered 212 residences.
Subsequently, the country also introduced a programme similar to the IRS, the Real Estate Scheme (RES). The government has approved 85 RES projects, vastly expanding opportunities to invest in Mauritius homes for sale.
Amongst the prime picks in RES, developments are the beachfront apartments of Manta Cove that 2Futures delivered in 2019. Only two of this property’s 14 residences remain unsold. The 2021 market looks ready to absorb these remaining units as well. In 2020, the Mauritius property schemes remarkably generated home sales of MUR9.2 billion despite the difficulties of the Covid-19 pandemic.
Swift market absorption is likely too for the 20 boutique apartments of Les Residences de Mont Choisy. 2Futures hands over the keys to the early buyers of these units starting the second quarter of 2021.
A boutique apartment is an enticing ticket for a Mauritian passport for non-citizens.
Learning from past market hits
The market penetration of these RES properties is built upon buyers’ warm response on 2Futures’ past residential deliveries under the same scheme. One prior market hit, AO Residences, was delivered on the market in 2015 and is comprised of 29 luxury apartments, villas, and townhouses. A three-bedroom apartment in this property listed for resale in early 2021 already carried a tag price in the million-dollar range.
There is a healthy appreciation in home value for those who choose to invest in homes for sale. The handsome returns come especially for those buying either before or during construction. On the high side, capital gains ranging from 40 to 50 per cent in these off-plan purchases are possible.
The expected return on investment will largely depend on the location of a development and the construction quality of its residences. To draw the most out of these factors, put high on the search list the projects of 2Futures. These properties have cornered some of the most coveted parcels on the idyllic north and west coast of Mauritius. Award-winning templates formed the backbone of these developments which have delivered fortunes for many who chose to invest in real estate.
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