Many South Africans are now looking at buying property in Mauritius to get residency to have a door open in a country outside of South Africa, but most are not yet ready to pack everything to come and live on the island.
According to Severine Dalais-Pietersen, licensee for Seeff Mauritius, a great option for SA buyers is to invest in the buy-to-let market. Should they later decide to relocate to the country, they would already have the property.
She says while property in Mauritius is still well priced, values do increase, and the longer you wait, the more you are likely to pay. Investing now means you can benefit from current prices, and rent the property out until you are ready to relocate to the island.
An important consideration for buyers would be to focus on ensuring they invest in a property that offers a favourable return on investment. She says most developments do not offer a great ROI, but those developments linked to a hotel tend to offer more favourable returns. The property owner also usually gets nights to use in these hotels which is great for them when they come on holidays in Mauritius.
Mauritius has a buoyant tourist and hotels market. According to the pre-Covid tourism statistics, the island welcomed over 1.3 million visitors (2019 figures), mostly from Europe, particularly France and the United Kingdom. Other significant markets include South Africa, India, and China. The market is now well on its way to recovering from the effects of the pandemic.
Mrs Dalais-Pietersen says the reasons for the increase in South Africans considering Mauritius as an alternative to relocate to, or to retire to, are multi-faceted. The island is close to South Africa and easily accessible within just over 4-5 hours with weekly flights.
Aside from safety and a quality lifestyle, the island now offers world-class infrastructure. This includes health care, education, a strong banking and financial sector, and top class amenities including luxury hotels and resorts and a range of luxury developments to invest in. It is also a favourable tax destination.
Additionally, the warm climate, beautiful beaches, and lush natural scenery make Mauritius an attractive location for those seeking a relaxed and laid-back lifestyle. The country's diverse culture, rich history, and friendly locals provide a unique blend of African, Asian, and European influences, creating a truly cosmopolitan and multicultural community.
The government of Mauritius has also implemented several measures to attract foreign investors, including tax incentives and streamlined procedures for property acquisition. One of the main advantages of investing in property in Mauritius is the country's low property prices compared to other residence by investment destinations.
Mrs Dalais-Pietersen says further that Mauritius also has no inheritance tax, capital gains tax or withholding tax on property transactions. This makes it an attractive location for foreign investors looking to purchase property for rental income or as a long-term investment.
Mauritius also has a high standard of living, with excellent healthcare and education systems, modern infrastructure, and a diverse and multicultural population. The country's warm climate, beautiful beaches, and natural scenery make it an attractive location for holiday homes, particularly for those seeking a peaceful and relaxing retreat away from the hustle and bustle of city life.
Overall, investing in property in Mauritius can be a profitable and rewarding venture for those looking to diversify their investment portfolio or simply enjoy the benefits of owning a property in a tropical paradise.
By investing in hotel apartments, investors can benefit from a combination of regular rental income and capital appreciation. Additionally, the government of Mauritius offers various incentives for foreign investors, such as tax exemptions and fast-track residency permits, which can make the investment process smoother.
However, as with any investment, it is important to conduct thorough research and due diligence before making any commitments. She recommends three hotel resort investment schemes for buyers to look at, namely La Pirogue Residences (priced from USD 725,000), The Essence Apartments and Villas (USD 540,000 for two beds), and The Welnest Beachside Residences (USD 435,000 for two beds).
These developments offer owners access to various luxury hotel benefits including reduced rates at facilities such as championship golf clubs and more. These all enjoy beach proximity. The projected return of investment offered ranges between 4% and 7% depending on the choice of property and options taken.
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PROP1 - La Pirogue Residences – offering a mix of luxury apartments (one, two and three bed units), situated on the West Coast of Mauritius for the ultimate ‘live-work and play’ resort lifestyle. Owners have access to various benefits including preferential rates at the two hotels, and the Ile aux Cerfs and Tamarina Golf Clubs. Apartment prices start at USD 725,000 (approx. ZAR 13.4m plus a deco pack) for a two-bedroomed unit which can generate an average yield of 8.2% per year made up of 4.1% in cash (USD 59,000) and 4.1% in the form of 60 hotel nights entitlement.
PROP2 - The Essence Apartments and Villas – a few steps from Trou aux Biches with beach and hotel access, offering a fabulous lifestyle and a choice of apartments and villas, close to Grand Baie, a championship golf course, schools and more. Owners will have access to the 5-star Le Cardinal Exclusive Resort & Spa and the Casuarina Resort & Spa and various services and amenities at special rates.
On a two-bedroomed apartment priced at USD 540,000 (approx. ZAR 9.9m plus a deco pack) the estimated net annual return on investment is around 4.9%.
PROP3 - The Welnest Beachside Residences – offering a mix of apartments and penthouses, located on the North Coast of Mauritius, midway between Port Louis and Grand Baie in the peaceful coastal region of the protected Balaclava Marine Park and facing the Maritim Resort & Spa Mauritius beachside golf course and the Turtle Bay. Owners will enjoy access to the facilities of the adjoining 5-star Maritim Resort & Spa as well as Maritim Hotels’ 30-plus years track record in Mauritius and their operational capabilities to generate superior returns. There is a choice of three programmes offering guaranteed fixed return of 4% over 5-years and an estimated 7% over 10-years.