Many developers have recognised the many potentials of the Property Development Scheme (PDS) emerging as the best investment in Mauritius.  Since its 2015 launch, this programme has spawned some 70 real estate projects, with their rental prospects helping drive sales.

The government’s guidelines specifically allow the owners of PDS residential properties to rent out these residences. The rental should be through the company holding the development’s PDS certificate. Alternatively, the PDS company can appoint a service provider which shall take care of the rental and property management.

Dual-purpose property

This setup makes a PDS residence an ideal dual-purpose holding. An owner can use it as a seasonal vacation home. During the rest of the year, the owner of the property could  rent it out easily. This as a property manager takes care of the rental and its upkeep.

The Mauritius rental market is a fertile ground for PDS properties.These properties are specifically geared as high-end developments that jibe well with the island’s growing luxury rental market.

The island’s robust tourism industry provides the tailwinds for luxury rentals. Demand for these upscale rentals is strong particularly in Grand Baie and Pereybere in the northern part of Mauritius. The top choices of PDS projects here include the developments of 2Futures, the No. 1 luxury real estate developer in Mauritius.

Attractive rental yield

The island’s luxury rental rates look rosy for those searching for these PDS ventures. The rental properties mostly in demand are those near tourist spots. The premium price goes to waterfront villas that could rent as much as MUR325,000 (USD8,200) per month. This compares with the median monthly rental of MUR40,000 (USD1,006) in Mauritius. On an annual basis, rental yield in the island’s capital Port Louis has been estimated at 6.17 per cent.

Earnings from rentals are on an upwards momentum particularly during Mauritius’s peak tourist season from December 20 to January 5. This is the time when European holiday-makers flock to the island and enjoy the southern summer. There are many local festivals as well during this time.

Tailwinds from vibrant tourism

But essentially, there isn’t much lull in the island’s tourist arrivals. Mauritius girds too for an influx of visitors from October to December, from January to mid-April, and mid-July to August. Water-based recreational activities, like boating, paddle boarding, and kayaking, are the main tourist draws during these periods. Golf is another favourite for island visitors at these times.

The southern winter months of May-June and August-September still gain some tourist arrivals. These are the windsurfers and kite surfers out for a kick of adrenaline from the island waters’ intensified trade winds.

As the time gaps are filled in the tourist trade, properties groomed as rentals in PDS projects indeed hold so much promise. The wider playing field that this real estate programme offers just may be reason enough to hold it as the best investment you could have.

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