Property developments in Mauritius are likely to cushion the economic fallout of the Covid-19 pandemic. Real estate sales to foreigners contribute a huge slice of foreign direct investment in the country. As a result, Mauritius government is expected to continue actively supporting real estate projects approved under its development schemes.
Significantly, the Bank of Mauritius has initiated financial measures to support businesses impacted by the pandemic. These include a foreign currency line of credit of USD300 million for businesses generating forex earnings. The bank has also cut its benchmark interest rate, lowering the cost of financing for property purchases.
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Luxury property developments
Government measures to assist Mauritian real estate developers are wise. Real estate and construction activities contribute 10.5 percent to GDP, according to an Economic Development Board 2019 report. Moreover, new property developments in Mauritius influence employment opportunities in sales and marketing, and creative services too. The Mauritian construction industry employs an estimated 40,000 workers.
Many real estate projects are now either ongoing or in the pipeline. For example, top luxury real estate developer 2Futures has 10 ongoing projects: 2Beach Residences, Serenity Villas, Ocean Point, Ki Resort, Les Residences de Mont Choisy, MCBQ HQ, Ki Residences, Manta Cove, Mont Choisy Le Parc, and Le Barachois. These fall under the government’s Property Development Scheme (PDS) or Real Estate Scheme (RES), which enable foreign investors to invest in property developments in Mauritius.
2Futures, like most of the country’s well-established developers, remains committed to its projects despite current challenges. Property investors have found 2Futures dependable, having completed all its developments, thus keeping foreign investment safe.
Firm footing towards recovery
While uncertainty remains on how the post-pandemic economic scenario will pan out, new property developments in Mauritius could provide some impetus to recovery. Construction on real estate projects halted during the Covid-19 lockdown is likely to resume when work restrictions are gradually lifted from June 2020. This bodes well for businesses and households looking forward to seeing the island nation on firm soil after navigating the challenges posed by the pandemic.