Mauritius has successfully kept its reputation as a safe destination for foreigners investing in real estate despite the coronavirus-induced economic challenges. This comes thanks to the continuing confidence of the luxury home developers on the island. They set in 2020 the implementation of Mauritius property investmentprojects valued at MUR10 billion, the Economic Development Board reported. In 2021, “30 new projects are finalised to move to the construction phase,” the board also said.
The developers’ firm display of commitment to these projects assures foreign investors to buy off-plan or sale under condition of future completion. These off-plan system or VEFA (Vente en État Futur d’Achèvement) are the typical contracts for foreigners’ Mauritius property purchases.
Significantly, Mauritius residential property projects have drawn a total of MUR5.1 billion foreign investments as of the 2020 third quarter. The constraints of the pandemic significantly trimmed this total below the comparable 2019 foreign investments on the island’s real estate. Nonetheless, it accounted for over half of the MUR9 billion gross foreign investments in the first nine months of 2020. This sure is an indication of the continuing sharp appeal of a Mauritius property investment to foreigners.
2Futures’ beachfront project Ocean Grand Gaube is a new landmark in the north of Mauritius.
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Strong fundamentals on homeownership
Mauritius not only offers the natural attractions of an exotic tropical island. Besides its natural beauty, Mauritius has also stood out for its health measures to effectively contain the spread of Covid-19 amongst its populace.
Encouraging especially to foreign homebuyers, Mauritius provides strong property rights under its statutes. Moreover, the government grants residency status to foreigners buying in projects under its real estate development schemes.
To attract more foreign homebuyers, the government has reduced the purchase price threshold to USD375,000 for residence eligibility. With residency status, the foreign homeowners won’t need a permit to work or invest in Mauritius.
Tailwinds for rental properties
Meanwhile, the government has adopted new measures that augur well for Mauritius property investment on rentals. The Mauritius Tourism Promotion Authority and the Economic Development Board launched in November 2020 a Premium Travel Visa. Valid for one year, this visa is designed to attract foreigners for extended stays on the island.
With this visa, Mauritius aims to draw not only tourists but also retirees and digital nomads working for overseas clients. The initial response to the visa has been encouraging. The EDB reported having already received thousands of online inquiries from interested visa applicants. In 2021, the board is initiating a joint marketing strategy with stakeholders in the tourism and real estate sectors to further promote the long-stay visa.
Mauritius property investment opportunities are surely growing. Government efforts jibe well with the confidence and enthusiasm of developers and other players in the island’s real estate sector.
We, at 2Futures, are well in synch with these dynamics. Contact us to explore the best entry points on investing in a property in Mauritius.
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