The Indian Ocean Island of Mauritius, renowned for its beautiful coastline and tropical climate, has over the past 10 years drawn attention on the global stage with its investor friendly environment, appetite for talent and a continually growing economy.
“Viewed as a sound model of stability and economic prosperity, the country has managed to firmly establish itself as a secure and reliable investment destination, with good fundamentals for growing wealth including solid ownership rights, a strong real estate market, a first world banking system, low tax rates and a free and independent media”, says Richard Haller – Director for Pam Golding Properties Mauritius.
Once dependent on sugar exports, the island has built up a strong outsourcing and financial services sector, an important tourism industry, a strong real-estate market and now boasts one of Africa’s highest per capita incomes.
Looking at the fundamentals, there are a number of key indicators to take note of, says Haller. “Firstly, Mauritius has consistently achieved economic growth of between 3% and 5.9% since 2006. This is significant given the global world crisis post 2008. The tourism numbers have also fared well, with growth in arrivals in the region of 10% per annum and are now in the region of 1.2 million visitors per year”.
“One of the more interesting statistics released by research company New World Wealth, is the noticeable movement of wealth to Mauritius. Since 2000, the number of United States dollar millionaires living in Mauritius increased by 340% and 160% since 2007. This makes Mauritius one of the top 5 performing markets in the world, as most countries experienced a negative growth in millionaires for this period”.
From a real-estate perspective, the introduction of the IRS legislation in 2004 which affords foreigners the opportunity to purchase property in Mauritius, has also attracted a significant amount of foreign direct investment into the country. Besides the appeal of owning a home in Mauritius, the ability to gain permanent residency for purchases over USD500,000 has appealed to a large proportion of buyers. The market continues to attract strong interest from foreigners as is evident at the sales done by Pam Golding Properties Mauritius at the Mont Choisy Le Parc development in Grand Baie. “We have sold 220 units since launch 3 years go to the value of over USD250 million (Rs 9 billion) with their still being strong interest in both Villas and apartments”, says Haller.
Grand Baie in particular has seen significant growth over the past 5 years with entry into this market at approximately €286,000 for a 2-bedroom, 2-bathroom apartments at KI Residences or stand alone villas from €690,000 at Ki Villas. Both these options offers property in the prime area of Pereybere, Grand Baie, at excellent price points, says Haller.
Real estate research undertaken by New World Wealth for Mauritius indicates a 6% growth in property prices for 2016, and growth of over 40% over the next 10 years. “Interestingly, we are already seeing proven capital growth at Mont Choisy Le Parc with some units being resold, before construction is even complete, for 25% more than it was purchased for some 24 months ago.
