Drivers of growth: Mauritius property investment schemes

Foreign buyers have been able to buy Mauritius property since the early 2000s. The sector has long been one of the main drivers of growth on the island. Real estate projects mushroomed through property investment programmes launched by government to attract foreign investors.

Direct investment inflows into real estate developments under these schemes totalled MUR14,03 billion in 2019, up from MUR8,06 billion in 2018. Overall, Mauritius’s real estate sector contributes over 5 percent to the country’s GDP.

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Award-winning masterpiece developments

The wins Mauritius real estate have gained over the years can be attributed to the superb developments on the market. Many have won international awards.

These include the 2017 International Property Award for Mont Choisy Le Parc in Grand Baie. Mont Choisy Le Parc is a residential project by 2Futures, the no. 1 real estate developer in Mauritius.

Lucrative niche market

Targeting a lucrative niche market is another reason behind the success of the Mauritius property investment schemes. Developers cater to the sophisticated tastes and desires of wealthy buyers, whether local or foreign.

The Mauritius property investment programmes gain traction from government’s drive to position the island as a regional financial centre. The schemes also benefit from the strength of the country’s tourism industry. Investors in the G+2 and integrated resort schemes access the possibility of good rental returns.

Strategic linkages

Mauritian real estate schemes are closely linked to government’s other growth objectives, such as attracting talent to help grow the economy.

To that end, the entry point for a permanent resident permit has dropped from USD500,000 (MUR8,6 million) to USD375,000 (MUR6,5 million). The validity of the permit has also been extended from 10 to 20 years.

What’s more, foreigners who obtained a residence permit under the real estate schemes will be able to work and invest in Mauritius without an occupation or work permit.

Mauritius offers certain tax perks to foreigners. These include tax exemption for capital gains and dividends, as well as inheritance.

Investment schemes have all the features that foreign buyers look for. Expect them to remain at the forefront of the country’s economic growth in the years ahead.

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