What drives demand for Mauritius property in a pandemic?

Demand for Mauritius property continues despite the COVID-19 pandemic-induced market difficulties, particularly in the upmarket niche. High-net-worth foreign buyers are more resilient financially.

The unique selling proposition of upscale residential properties as a safe investment has become even more evident. High-end homes fully demonstrated their worth as safe havens during the extended periods of quarantine.

More attractive price range

The price points of luxury real estate in Mauritius are also more attractive to foreign investors when compared with other international destinations. In most major cities of the world, investors need at least USD1 million to own luxury home.

However, the price of upscale residences in the Mauritius incentive schemes for foreign buyers is much lower. The median price for these properties was estimated at about USD545,800 in prime property developments.

Residency and tax advantages

Moreover, certain privileges sweeten the deal for property purchases under these schemes. At a specified minimum price point, foreign buyers get permanent residency status and certain tax perks. Notably, Mauritius has no property tax. Inheritances, capital gains, and dividends earned locally are also tax-free. The country charges a flat 15 percent tax on individual and corporate income.

Significantly, Mauritius has reduced the minimum price for foreign buyers to gain permanent residency. The previous USD500,000 minimum price was cut to USD375,000 in the country’s 2020-2021 budget.

This reduction would be particularly appealing to South African investors, who rank second to French buyers. Mauritius has become a second home for many South Africans because property prices are more attractive on the island. The increased choices among property developments in Mauritius are a compelling factor too.

More choices, rich resale returns

For instance, 2Futures, the no. 1 luxury real estate developer in Mauritius, has 10 new projects. These are either under construction or in the pipeline. Most comply with the country’s foreign investment schemes.

Investing in well-chosen, upscale Mauritius property can generate substantial returns upon resale. A penthouse bought for USD370,000 could be worth USD500,000 in just four years. Indeed, this is a strong motivation for investing in high-end properties in Mauritius.

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