Sharp uptick in Mauritius property as borders reopen to South Africans
Category International
A sharp uptick in the demand for property in Mauritius is anticipated as the borders reopen to vaccinated South Africans on the 1st of October, says Séverine Dalais-Pietersen, Marketing Executive for Seeff Mauritius.
As the island prepares for an influx of tourists, she says there is a growing expat population which fuels demand for new developments and further contributes to the vibrant sales and rental market.
The island lifestyle, excellent infrastructure including a good education, healthcare and a strong financial system along with attractive tax benefits including a flat rate of 15% (individuals and corporates) are part of the attraction for foreign buyers and investors, she adds.
Pre-pandemic Mauritius boasted one of the strongest economies in Africa and was upgraded to a high-income country by the World Bank in mid-2020. It boasts the highest per capita wealth in Africa at USD 31,900, followed by South Africa at USD 10,310.
About 25% of real estate sales were to foreign buyers in the pre-pandemic period and Ms Dalais-Pietersen expects this to recover quite quickly depending on the pandemic of course. There may even be a boom as buyers look to escape the confines of the pandemic in their home countries. Bear in mind, few people have been able to travel over the last 18-months.
South Africans comprise the second highest volume of sales (after the French) with volumes rising rapidly (up from 14% five years go to 25%). New World Wealth estimates that some 280 of South Africa’s dollar-millionaires have relocated to Mauritius since 2007.
Residential prices expanded by about 133% over an 8-year period to 2019. The market is diversified across both commercial and residential offering sales, rentals and investment opportunities, she says.
What are South Africans investing in?
Foreigners may only purchase and invest in certain designated property developments, but these are in excellent locations, generally along the coast, says Ms Dalais-Pietersen.
There are a number of new developments around the sought-after north-western area close to Grand Baie of interest to South Africans. The most exciting is “The Welnest Residential Hideaway” which is opposite the 5-star Maritim Resort and Spa about midway between Port Louis and Grand Baie.
It is next to Turtle Bay, the first protected marine park of Mauritius and close to the Turtle Bay 18-hole championship golf course, business centres and schools.
The development is operated by Maritim and offers 5-star beach resort amenities including direct beach and sea access, hotel services for all residences, restaurants, leisure centre with a host of features including a fitness centre and spa, mediation decks, yoga and tai chi.
There is a choice of apartments with two to four bedrooms, four-bedroomed penthouses and villas with three to four bedrooms. Prices range from just over R5,8 million (MUR 15.7 million) (plus costs) for a two-bedroomed apartment.
Maritim boasts a 30-year track record and the development offers an exceptional investment opportunity to earn rental returns with a choice of three rental programmes available to choose from.
The expected return on investment is 6%-7% per annum over ten years on average, or 4% fixed guaranteed return over five years. There are attractive launch prices and a deposit of only 10% is required to secure your unit, she says.
Visa options for South Africans when investing in property
Mauritius is a fabulous destination to own a holiday home in, but an increasing number of South Africans are relocating and retiring to the island. Given the accessibility from and to South Africa, it is ideal for second homes, she says further.
The investment needed for a residency visa now starts from only USD 375 000 (down from the previous requirement of USD 500 000) as a property investment. Long-stay (Premium Travel) visas are now also available subject to certain conditions which is a great option for remote workers or if you want to experience the lifestyle before making a permanent move, concludes Ms Dalais-Pietersen.
Contact Seeff Mauritius by email at mauritius@seeff.com or https://mauritius.seeff.com/.
Author: Gina Meintjes
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