Mauritius real estate remains attractive to foreigners since the country allowed non-citizens to invest in freehold property on the island nearly 20 years ago. Despite the coronavirus pandemic’s constraints, non-citizen acquisition of residential properties amounted to MUR9.2 billion in 2020, according to the Economic Development Board (EDB).
The Mauritian government’s dynamic approach to foreign real estate investment helped sustain foreigners’ interest in the acquisition of properties on the island. The government at once offered juicy incentives when it introduced the Integrated Resort Scheme (IRS) to foreign investors in 2002. Since then, it pursued further efforts to heighten foreigners’ interest in investing in island properties.
The Mont Choisy Le Parc is an IRS project that owes much of its success to these dynamic government policies. The VEFA (Vente en l’État Futur d’Achèvement) allowed in the IRS is one factor pivotal to this success. With VEFA, the property purchases proceed on the pre-construction or construction stage. This setup thus enabled staggered payments while the project is in progress.
An idyllic golf course location plus stylish residences build pride in owning a residence at Mont Choisy Le Parc of 2Futures.
Quality workmanship guaranteed
Importantly, a performance bond called Garantie Financière d’Achèvement (GFA) backs the VEFA as an assurance of construction completion. This bond not only provides peace of mind to the foreign buyers of Mauritius real estate. It also offers a guarantee in the quality of workmanship in IRS projects like Mont Choisy Le Parc. Here, 2Futures delivered 212 luxury residences at a total development value of USD240 million.
The market success of the IRS and its VEFA provision contributed to revolutionising the island’s property market. Building upon the IRS’s success, the government launched the Real Estate Scheme (RES) to attract more foreign investors. Later, it combined the two programmes in the Property Development Scheme (PDS) to streamline the foreign investors’ entry into Mauritius real estate.
Property choices widened
Besides this streamlining, more land parcels became eligible under the PDS, thus expanding foreign investors’ property choices. In 2020, the government sharpened its incentive for permanent residency tied with foreign investment in Mauritius real estate. It lowered the investment threshold to USD375,000 from the former USD500,000 minimum investment for residence eligibility.
G+2 apartments like these at Ocean Grand Gaube offer potent opportunities for rental investors.
Real estate investment at lower price points is also now open to foreign investors. The government amended the Non-Citizens (Property Restriction) Act to allow non-citizens to buy apartments two levels above ground (G+2). This scheme covers purchases starting from MUR6 million (about USD160,000), with buyers allowed to purchase more than one apartment. It is thus suited for rental property investors.
The Ocean Grand Gaube of 2Futures is a G+2 project generating keen attention from prospective foreign investors. Its waterfront location near Grand Baie makes this property ideal as a rental investment. For sales enquiries, reach out to Rinie on +230 5817 75 or rb@2futures.com.
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