South
Africans are increasingly dominating the property market in Mauritius – with their
buying power contributing to growth in the construction and real estate sector.
This
is according to Diane Watkins, executive director of Barnes International
Realty in Mauritius.
Foreign
investors can get permanent residence status, upon the purchase of property of
more than $500 000 (about R7m) within designated Property Development Scheme (PDS)
areas.
Moreover,
personal and corporate tax on the island is standardised at 15%, and there is
no capital gains tax.
'Hedging bets'
Mauritius
is also viewed as a hub from which to access the rest of Africa for business.
"SA
buyers are not just looking to buy in Mauritius from a financial investment
perspective, but from a lifestyle and 'hedging their bets' perspective
too," Watkins told Fin24.
"We
are even seeing some SA buyers who bought in Mauritius up to ten years ago,
noticing that their property investment held its value and now wanting to buy
more properties on the island."
SA
families are worried about crime and the status of the rand, she says, and the
island offers good schools and even tertiary options with international
accreditation for SA expats' children.
"This
is not just a short-term goal for the SA buyers.
"It is a smoother transition
for them, allowing them to decide at a later stage whether they want to leave
SA permanently or not. Some even continue running their businesses in SA."
Two
villages, one owner
Foreign investors looking at
purchasing property in PDS can start more conservatively and still expect
excellent medium- to long-term returns, Watkins believes.
Such growth was occurring in the
south-east coast currently, she told Fin24.
Most
of the land around the Blue Bay and Pointe d’Esny areas – the two villages that
front the lagoon in this part of the island – have had a single owner for
almost 300 years.
That ownership was consolidated
under the umbrella of the Compagnie de Beau Vallon Ltée some 97 years ago and
remains intact to this day.
But Compagnie de Beau Vallon Ltée
has been a property developer for a dozen years now, apart from being an island
agricultural mainstay and a hospitality player.
Its new PDS development, Pointe
d’Esny le Village, is the first near the lagoon. The development is an
integrated village project close to the ocean, consisting of close to 500
residential units. Apartments are going from around R5.4m, duplexes from R7.2m
and villas from between R15.14m and R28.75m.
The south east coast of the
island is still relatively undeveloped, and the land owners have taken some
time developing a sustainable scheme that would provide growth but also protect
the sensitive ecological area, Watkins said.
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