Prime local residential areas include Floreal and Moka in the central plains, Trou Aux Biches, Grand Baie and Pointe Aux Cannoniers in the northern coastal zone, Flic en Flac, Black River and Tamarin on the western coastal zone, and Blue Bay in the south east coastal zone.
On a local scale, land in quality residential morcellements are generally sold in the region of Rs 3,948 per square meter (Rs 15,000 per toise) to Rs 9,212 per square meter– only a limited number of sales at that price point - (Rs 35,000 per toise), with an estimated overall average of Rs 5,396 per square meter (Rs 20,500 per toise). This, of course, excludes a few prime beachfront freehold sites in the Blue Bay region sold in excess of Rs21, 057 per square meter (Rs 80,000 per toise).
Based on the relative stagnation of pricing in such developments over the last 4 years, there has been a push towards greenfield sites situated at the edge of prime areas with capital growth potential trading at almost more than half of the lowest residential rate in quality morcellement.
For built up apartments, the market is mainly dominated by prime coastal areas(Trou Aux Biches, Grand Bay, Pointe Aux Canonniers, Flic en Flac, Black River and Tamarin)with recent regain of interest in central plains (Moka and Floreal). The general range of pricing for quality apartments is between Rs 50,000 per square meter to Rs 130,000 per square meter (the latter being fetched in prime beachfront developments). Whereas demand has dried up for prime beachfront apartment developments at peak pricing, it has boosted for rear locations with adequate pricing structures.
On the foreign ownership market, given that the schemes (IRS and RES) have merged into a single framework known as ‘Property Development Schemes’ (PDS), we have combined data of the previous schemes to provide a clear picture of the segment going forward. Following a decrease in average pricing in 2012 and 2013, overall average pricing of IRS/RES in 2014 was at Euros 819,000 with a recorded low transaction at Euros 237,000 and a high of Euros 3,230,500. In terms of pricing per square meter, the average for 2014 was at Euros 3,524, representing a jump of 41% over the previous year, with a low of Euros 1,033 and a high of Euros 8,966. About half of the buyers in these schemes are French nationals and a quarter, South Africans followed by other European citizens. There are a limited amount of quality schemes coming onto the market this year with the most interesting ones located on the western coast.
Broll Indian Ocean has a number of properties and projects on sale now and in the pipeline over which 87% are under exclusivity. Our cross range of services ranging from residential, valuation, asset management, corporate real estate services, property, body corporate and facility management, gives us an edge on the marketplace in terms of getting our clients the right deal at the right time. Our association with world leader CB Richard Ellis allows us to access to the latest technologies, best practices, global market knowledge and research, and enables us to keep pace with the latest developments in the real estate services sector.
Broll Indian Ocean / CBRE
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