Evolution of real estate in Mauritius after Covid-19
Mauritians are particularly attached to their land and their heritage. Owning a property in Mauritius is a sign of exceptional nobility for a household. It is also a perfect guarantee to ensure a happy and fulfilling future life for a whole future generation. Before the country experienced its current economic boom, Mauritians mainly sought to build a decent roof, depending on their purchasing power, to make it a primary residence. Some then invest in the purchase of land, others finance the construction of their house with their savings or a bank loan.
Over the past 20 years, the economy of Mauritius has experienced unparalleled development. The infrastructure is constantly evolving, many schools and universities are now available on the island, and Mauritians are also beginning to feel a need to consume more. And with a much more advanced quality of life, Mauritians can now afford to live more easily, and to invest in the real estate sector with more capital.
More and more Mauritians are now deciding to invest in the purchase of a second home, either to profit from it by renting it out, or to afford a main residence in a beautiful region of the island. . The dynamism of the Mauritian economy also makes it easier for locals to obtain real estate financing, at relatively low rates, from Mauritian banks. Young entrepreneurs thus manage to afford a beautiful property quite quickly in Mauritius. And the evolution of the real estate sector is being felt day by day, because if previously, buyers themselves got down to the construction of their future residence, today, many Mauritians prefer to buy a property. new turnkey real estate.
Many buyers choose to invest for the medium to long term. For the majority of them, it is about investing in the purchase of a primary residence. Those who plan to make a real estate investment, over the long term, choose IRS or RES type schemes.
The real estate resale market, even if it exists, remains very small, as most buyers decide to keep their acquisition to make it a heritage to pass on to their future generations. Those who think they will get a capital gain from their property opt for resale, but offers are still very rare on the Mauritian market.
Significant added value in both new and old
Talking about capital gain means reselling your property at a much higher price than what you bought it for. It is therefore the difference between the sale price and the purchase price.
Given the scarcity of real estate resale offers in the former, in Mauritius, it is quite possible to obtain a high capital gain. However, you have to stay within the average possible depending on the market price and the region where the property is located. Investing in real estate resale in the old one has the advantage of being able to negotiate the price, depending on the condition of the property and the repairs to be made.
In new buildings, an off-plan acquisition allows for significant and rapid capital gain. Prices tend to rise between the launch of a new program and the delivery of the asset. Today, this option seems more interesting, because we are facing an increasing demand and a very limited supply. Mauritius, being a small island with a very limited area, the land available for new construction is also limited. This also allows developers to offer higher and higher prices in certain tourist areas, such as Grand Baie. On the other hand, the new real estate sector is of more interest to current investors than the old one.
To ensure that you get the correct capital gain, it is recommended to check the price / quality ratio when buying a property. Without forgetting its geographical location, and the potential urban development of the region. We must also take into account the evolution of the market, and the general condition of the property at the time of purchase.
The prices of the houses vary depending on the region. In the most popular areas where villas and complexes are built like:
Grand Bay
From Rs 6 million to 40 millions
Tamarin
From 7,000,000 to Rs 125, 000, 000
Flic en Flac
From 10,000,000 to 300,000,000
Wait a bit to get an idea, both for developers and investors. This is the current posture. By force of circumstances given the closure of borders, preventing any visit to property that could lead to a reservation, but also give time the mission to erase the doubt about a consequent financial choice, in times of uncertainty. A real estate development on the island still has a bright future ahead of it. Because people will always have to find housing, seniors find solutions adapted to their lifestyles and young working people a home of their own. Mauritius also has enormous assets on which land developers can draw in order to attract foreign clients, which are essential for the country and its economic development.
A necessary part of observation on the evolution of the market, locally and internationally, patience before experiencing a return to normal, a communication focused on the uniqueness of goods, a readjustment positioning to turn to Mauritian investors for some… promoters must be reactive and creative. But they do not seem to have lost their confidence in the future … Because associated with the heightened perception that real estate investment represents more than ever a safe haven, the island itself is a Gaull village. Having been able to protect themselves from the COVID-19 health threat.