First time to buy a house in Mauritius? PDS has a VEFA for you

The hefty amount it takes for a home purchase is often a tough hurdle for first-time buyers. Aspiring homeowners can nonetheless readily take that leap to invest in properties for sale in Mauritius.  They can even go high-end in their picks, which is possible under the government’s Property Development Scheme (PDS).

They can even go high-end as well in their picks, which is possible under the government’s Property Development Scheme (PDS). Developers of PDS projects can sell their builds on the basis of a plan or during their projects’ construction phase.

A boon for investors too

Hence with this scheme, prospective homeowners can buy a house in Mauritius by installments. There’s even a great bonus in buyers being able to contribute their ideas to the plans of their dream homes.

Buyers purchasing a residence in Mauritius on the basis of a plan or during the residential construction enter into a VEFA. Defined as Vente en l’Etat Futur d’Achèvement or sale in a future state of completion, this contract works best too for investors.

Pricing at the development stage is typically at a discount as compared with residences ready for occupancy.  A home purchase under a VEFA contract thus opens the potential for a resale profit upon delivery of the residence and completion of the PDS project.

The schedule of payments and amounts in a VEFA contract is based on certain milestones. This timetable proceeds on the following signposts:

Purchase contract signing — 25 %
Foundation works completion — 10 %
Roofing completion — 35 %
Project completion — 25 %
House key handover — 5 %

For the buyers’ assurance and protection

The VEFA provides mechanisms to protect home buyers in case a developer is unable to meet its obligation to deliver the residence. The Mauritian Civil Code provides such guarantees under the contractual agreement between the buyer and the developer. Mauritian banks and other financial institutions also extend a GFA or Garantie Financière d’Achèvement to protect a buyer if the developer fails to complete a project.

First-time homebuyers can get further assurance if they pick well-established developers in the mould of 2Futures. This leading luxury real estate developer in Mauritius not only undertakes PDS projects. It also has several developments under the Integrated Resort Scheme and the Real Estate Scheme.

All told, 2Futures has 18 projects either completed or in the pipeline or under construction. As of 2020, it has delivered more than 370 residential units, all on time. This developer is likewise currently building over 450 residences in locations where it’s ideal to invest in Mauritius.

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