Dreaming of a tropical paradise to call home? Whether you’re planning to retire, invest, or simply find a luxurious getaway, Mauritius is the gem you’ve been searching for. Dive deep into a comprehensive guide designed specifically for foreign buyers and discover the unique property schemes that Mauritius offers to international buyers.
Why does Mauritius have Property Schemes?
The Portuguese first found Mauritius in 1505. After that, the Dutch, French, and then the British took turns ruling it. In 1968, Mauritius became independent but stayed in the Commonwealth, and by 1992, it became a Republic. Interestingly, when the Portuguese first arrived, there were no local people living there. This fact plays a significant role when talking about land changes and rural development in Mauritius.
Real estate investment has come to incorporate the concept of property schemes as a regular component. We will also examine the economic impact of secure property rights, particularly their correlation with prosperity and community resilience.
This page further discusses crucial factors influencing investment decisions in property schemes such as location valuation and considerations for new constructions (Off-Plan under VEFA) versus existing properties (Built-Up / Resale). Buyers can also look into other indirect investment options through trusts and offshore company acquisitions.
Property Schemes for Foreign Acquisition
IRS
RES
PDS
SCS
What differentiates a Property Scheme from every other deed on the Island?
Mauritius’ property rights have come a long way, to the most secure in the Indian Ocean and in Africa. Buying property in Mauritius through one of the designated property schemes—like IRS (Integrated Resort Scheme), RES (Real Estate Scheme), PDS (Property Development Scheme), and SCS (Smart City Scheme) – is considered secure for several reasons:
Government Endorsement
These schemes are introduced and monitored by the Mauritian government. This ensures that the investments are made within a legal framework that adheres to local regulations and standards.
Ownership Deeds & Titles
Mauritius has a robust legal system, inherited largely from its French and British colonial roots, that ensures clear property titles. Buyers can be confident that there won’t be disputes over ownership. Mauritian Notaries are amongst the most qualified, and of course, busy professionals. Some notable offices include Hart de Keating, Etude Maigrot and Etude Gopee.
Attractive Incentives for Investors
The Mauritian government offers various fiscal incentives to foreign investors, such as non-double taxation agreements and no capital gains tax, which adds a layer of financial security and attractiveness to the investment.
Quality Standards
Properties developed under these schemes often adhere to high-quality standards, ensuring that buyers get value for their money. Grade A construction requirements are guaranteed by all reputed property developers. The selection of property developers featured on liveinmauritius.com go through thorough screening and in person meetings prior to being featured.
Residency Benefits (Residence Permit)
Purchasing property under these schemes often comes with residency benefits. This not only ensures that foreign buyers can live in Mauritius but also adds an extra layer of commitment from the government towards these buyers.
Stable Political Climate
Mauritius boasts a stable political environment, which makes it a safe haven for real estate investments.
Growing Economy
With its strategic location and diversified economy, Mauritius has been witnessing consistent economic growth, which ensures a conducive environment for property investments to thrive.
Due Diligence by the EDB
Before any real estate project is approved under these schemes, it undergoes a stringent due diligence process. This ensures that only legitimate projects that meet specific criteria get the nod, adding a layer of trust for investors. The Economic Development Board of Mauritius is the institution that vets and give permits to both promoters and investors.
Foreigner-Friendly Policies
Mauritius actively encourages foreign investment. The property schemes are part of this initiative, and as such, they are designed to make the buying process as smooth as possible for foreign investors.
Robust Banking System
Mauritius has a well-established banking system, and many international banks operate in the country. This ensures secure transactions and financial reliability when purchasing property.
Property Schemes and Social Responsibility
Property developers in Mauritius, under many of these schemes, have an obligation to initiate CSR (Corporate Social Responsibility) initiatives in the areas they develop. Consequently, neighboring communities benefit greatly, gaining access to sponsored educational and training programs, employment prospects, infrastructure improvements, and community-enhancing projects, such as health clinics and recreational areas. This holistic approach ensures that development is not just about constructing buildings, but also about uplifting and empowering the local population.
Sustainable development in Mauritius Real Estate
Sustainable development, particularly in the context of real estate, has been gaining significant attention in Mauritius. The island nation recognizes the importance of balancing economic growth with environmental protection and social inclusivity.
Green Building Standards
Mauritius is increasingly adopting green building standards. Newer constructions often incorporate energy-efficient designs, utilize renewable energy sources, and emphasize water conservation. The aim is to minimize the ecological footprint of the buildings.
Local Material Use
To reduce the carbon footprint of transporting materials, there’s a growing emphasis on using local materials for construction. This also helps in supporting the local economy.
Afforestation
Property Developers in Mauritius are also focusing on tree planting and creating green spaces around their properties. This not only enhances the aesthetics but also contributes to the environment by acting as a carbon sink.
Community Involvement
Sustainable development isn’t just about the environment. Developers are now more engaged with local communities to ensure their needs are met and that they benefit from the development, whether through job opportunities, educational programs, or infrastructure improvements.
Buying off plan v/s resales (built-up) within property schemes
When investing in real estate, two common purchasing options are “buying off-plan” and “buying resales.” Both options come with their respective advantages and disadvantages. Here’s a comparison to help you understand each approach better:
Advantages of buying off-plan
Potential for Higher Returns: Often, prices for off-plan properties are set lower than the market rate. As the development progresses, the value of the property can increase, potentially leading to higher returns on investment upon completion.
Customization: With off-plan properties, buyers sometimes have the option to customize certain features or layouts to suit their preferences.
Modern Design and Standards: New developments usually adhere to the latest building standards and incorporate modern designs and technologies.
Payment Plans: Developers often offer flexible payment plans for off-plan purchases, allowing buyers to make staged payments.
New Amenities: Newly built properties may come with modern amenities, energy-efficient systems, and newer construction materials.
Things to pay attention to when buying off-plan
Risk of Delay: Construction projects can face slight delays due to various reasons, usually unforeseen construction issues. However, Mauritian property developers are known for keeping their buyers up to date at each stage of construction.
Uncertainty: Computer-generated images or show homes are the only reference, so the final product might differ slightly from what’s been shown.
Initial Flaws: Newly constructed homes might have teething issues or defects, although these are usually covered under warranties. Real Estate developers also cater for “snagging” period after delivery.
Financial Instability: In rare cases, if a developer goes bankrupt, it can pose risks for those who’ve bought off-plan. However, Mauritius requirements for developers include a GFA (the bank guarantees the completion of the real estate development)
Cap Marina
Cap Marina is steeped in nature and offer extraordinary apartments, townhouses and villas for Mauritian and foreigners.
Living in Cap Marina is like dwelling in nature itself, yet having the luxury of essential products and services at one’s doorstep. These include a little supermarket pharmacy, bakery and various shops. Recreation facilities are also available including a swimming pool, sports centre, concierge, kid’s club and spa. Moreover, from the gourmet restaurant with a roof top bar, one has a breath-taking view of the Coin de Mire.
Pros of buying built-up / resale properties
What You See is What You Get: With resales, buyers can inspect the actual property, understanding its condition, layout, and any potential issues.
Faster Possession: Resale properties are ready-to-move-in, avoiding the wait associated with off-plan projects.
Established Neighborhood: Resale homes are often in established communities with existing infrastructure, amenities, and neighborhood vibes.
Negotiation: Prices for resale properties can sometimes be negotiated based on the property’s age, condition, and the urgency of the seller.
Things to pay attention to when buying resales / built-up
Potential for Upgrades: Older properties might require renovations or upgrades to meet a buyer’s standards.
Higher Initial Costs: Resale homes may not offer the flexible payment plans that off-plan properties do, often requiring a substantial down payment.
In summing up, Mauritius stands out as a beacon for global real estate investors. From its rich history to its forward-thinking property schemes designed to cater to international buyers, the island nation offers a comprehensive package.
Its commitment to ensuring secure property rights, emphasis on sustainable development, and the blend of off-plan and resale options make it a versatile and attractive investment hub.
With added advantages like robust banking systems, government incentives, and a promising economic trajectory, it’s no wonder that Mauritius is increasingly becoming the preferred choice for many looking to invest in tropical paradises. Whether you’re a retiree, an investor, or someone looking for a luxurious getaway, the Mauritian real estate landscape promises something for everyone. Dive in, explore, and let Mauritius enchant you!