10 Reasons for Real Estate Investment in Mauritius

1. The unique beauty of nature

Mauritius is located in the western Indian Ocean, 900 km east of Madagascar. The very origin itself provides him with a completely unique, piercing tropical beauty. It is a volcanic island surrounded by coral reefs that protect the coast from the destructive effects of ocean waves. From a bird's-eye view, the coast looks like a bizarre pattern: under the turquoise ocean water, black, dotted with corals, on the shore - green, rich in vegetation. Mauritius has a unique ecosystem with unique flora and fauna, no wonder its official motto is "The Star and Key of the Indian Ocean"! There are valleys and mountains covered with greenery and sugar cane; paradise sandy beaches and cozy coves; tall coconut palms; waterfalls and colored sands of Chamarelle; sparsely populated areas with wildlife in the south of the island. The island is washed by the clear turquoise waters of the Indian Ocean. And one more important detail: there are no dangerous insects, animals and diseases here. When traveling to Mauritius, you do not need to be vaccinated, unlike other tropical countries.

2. Comfortable climate

The climate of Mauritius is comfortable for rest and permanent residence. Since the island lies in the southern hemisphere, the seasons here are opposite to the Russian ones. Summer lasts from November to April, and winter lasts from May to October. It is the Mauritian summer that is the period of the tourist boom, when real estate is most actively rented out. The air temperature at this time is +23-25 °C, water is +21-23 °C. It is worth noting that there is no high humidity, usual for the tropics. The rainy season lasts from May to July, but the rains are always interspersed with the sun and last no more than an hour. The air temperature in the period from May to October rises to +27-30 °C. The highest temperatures reign on the west coast — it is more arid. For lovers of water sports, the southwest is mainly attractive, in the area of the mountain and the peninsula of Le Morne of the same name, because the wind rose creates stable conditions in this place for constantly blowing wind and the formation of the right wave. The southeastern and eastern coast of Mauritius has a milder climate and is comfortable for those who do not like the heat. The north of the island is the choice of those who live here permanently or do business: there is a developed infrastructure, although it is hotter. The West is also convenient and represents a good balance between the level of urbanization, developed infrastructure and natural beauty.

3. Convenient geography for different lifestyles

Future buyers of real estate in Mauritius should first decide on the purchase goals, and then get to know the geography of the island well. This will make it clear which part of it is most suitable for the future home. Not only weather conditions play a role here, but also infrastructure, in some parts of the island more suitable for a relaxed holiday, in others for an active life and doing business, as well as the proximity of real estate to the sea. North Mauritius is the most densely populated and urbanized, with convenient access to all infrastructure facilities: shops, restaurants, banks, clubs, educational institutions. And, of course, to the gorgeous tropical beaches! For those who live here permanently and also conduct business, this is the No. 1 direction. Southwest Mauritius is a prestigious destination with villas located on large territories, as well as modern residential complexes with a unique design, each planned in its own style. There are many interesting projects here: some of them consist only of villas, others of townhouses, others have both on their territory. The west of the island is a cross between the north and southwest of Mauritius. There is a convenient infrastructure, there are many shops, supermarkets, restaurants, there is everything necessary for life. The temperature in summer reaches +30-35 °C. In the east, where the trade winds blow and the air is clean and fresh, open spaces reign, which is typical for residential projects located on impressive territories. This means that you will most likely have to get to the nearest store here by taxi. Of course, there are small shops in residential complexes, but this may not be enough for year-round living. It is here that the famous golf courses of Mauritius are located, attracting wealthy audiences from all over the world.

4. Good transport accessibility

Although Mauritius is located far from Russia, our countries have convenient transport links. In addition, they are in the same time zone, and the time difference with Moscow is only one hour, which is very convenient for doing business in the country. After the termination of the airline "Transaero", there are no direct flights from Russia to Mauritius, but on November 16, 2017, a meeting was held between the deputy head of the Federal Air Transport Agency (Rosaviation) Oleg Klim and the Ambassador of Mauritius to the Russian Federation Maheshwarsingh Hemliva, at which the resumption of direct flights between the states was discussed. Interestingly, more Russians visited Mauritius this year than in any other year, including when direct flights were still operating. The most convenient flight to date is provided by Emirates via Dubai. British Airways flights via London and Air France via Paris are also popular.

5. Rich history and comfortable living environment

Mauritius is a country in Africa that has an interesting history, thanks to which a unique cultural environment has been formed on the island. Since its discovery in 1512 by the Portuguese navigator Pedro di Machcarenhas, the Dutch have visited here, for 100 years the island has been a French colony and for 150 years the British flag has flown over it. Ships stopped here on their way from Asia to Europe, and every nation that lingered in Mauritius left its mark here. Today, several ethnic groups belonging to different faiths live and coexist harmoniously on the island - Islam, Christianity and Buddhism.The vast majority of the island's population are Indo-Mauritians, but also Creoles, French-Mauritians, Chinese, as well as representatives of all countries of the world live in Mauritius. Nevertheless, the French period had a strong influence on the culture of the island, which was reflected not only in architecture, cooking and the general mood of life, but also in the fact that French is the second most popular language on the island after Creole. Interestingly, Mauritius is the only country in the world where the constitution does not mention any official languages. Although all documents in Parliament are published in English, it is also most used in schools and government offices.

6. High standard of living and developed infrastructure

Mauritius is a tropical paradise with all the advantages of a developed European state. The island has the status of a prestigious holiday destination and annually receives an impressive number of wealthy tourists from all over the world. Holidays in Mauritius are considered expensive, as well as real estate, mainly villas, as well as townhouses. It has a very convenient, comfortable and modern infrastructure. Mauritius has the best hotels in the world, championship-class golf courses designed by famous golfers, great shops and restaurants. The rich nature of the island provides a lot of interesting, including exotic entertainment: boat trips on yachts (or in spacesuits on the ocean floor!), diving in an underwater scooter, surfing, kiting, windsurfing. Here are definitely some of the best opportunities for a beach holiday in the world, as well as spending holidays with children. The north of Mauritius and its capital Port Louis is the most populated part of the island, where those who move here for permanent residence or for business choose real estate. In addition to the business center, government offices, banks, insurance and trading companies, there is a university and several museums. 

7. Excellent opportunities for conductingbusiness

According to the BOI Investment Council (the National Investment Development Agency of the Government of Mauritius), international experts consider Mauritius a profitable investment destination. The legal system of Mauritius is based on the legislation of Great Britain and France, which is considered one of the most reliable and accurate in the world. The agreement on the abolition of double taxation has been signed with 33 countries, including Russia. Large international and developed local banks are represented. There is no progressive taxation system and there is a fixed tax rate. All investors who purchase real estate on the island pay a fixed amount of 15% of the amount of income received.

8. A simple procedure for obtaining a residence permit for investment

The opportunity to purchase real estate for foreigners appeared in Mauritius relatively recently, in 2005. Citizens of other countries can buy housing on the island in freehold ownership, which is a big plus in comparison with other tropical destinations. A residence permit is issued indefinitely, and after two years of residence in the country in compliance with the constitution and the relevant rules, a foreigner can apply for citizenship of Mauritius. The state protects its residents: the holders of a residence permit are under the government, including in the field of confidentiality of the movement of funds.

The main conditions for obtaining a residence permit under the three investment programs of Mauritius: 

• Integrated Resort Schemee assumes automatic receipt of a residence permit when buying a real estate object, the cost of which exceeds $500,000, provided that the applicant complies with all the requirements of the program. The registration fee is $70,000. The progressive taxation system is not used. The minimum area of possible development is 10 hectares.
• Real Estate Scheme. This program, introduced by the Government of Mauritius in 2007. It is considered the most accessible of the three. The minimum investment budget is not defined, but when buying a home in excess of $ 500,000, an investor can immediately apply for a residence permit. The amount of the registration fee is $25,000. The resident gets access to infrastructure facilities independently, and the building area for him is limited to 10 hectares.
• Property Development Scheme. Implemented by the Government of Mauritius in 2015, combines the advantages of the other two and, according to experts, is the most promising of all. It involves the purchase of luxury housing from a reliable developer. The amount of the registration fee is strictly fixed and amounts to 5% of the value of the purchased object. A residence permit for the purchase of real estate under this program is provided, and the investor has the right to use the entire developed infrastructure of the island and receive social services. The government carefully monitors the implementation of this scheme, grants permits for the construction of new facilities, thus guaranteeing compliance with obligations to buyers of real estate.

9. Stable rental income

Mauritius is a new direction for investment in the residential real estate market, which is mainly represented by new high-quality housing, which is built according to high modern standards. The share of housing in the secondary market is small due to the fact that this is a relatively new area for investment, which has been developing for just over 10 years. But already built objects for the most part are sold, because in the vast majority of cases, real estate is purchased at the stage of marking the site by the developer, that is, "from the plan". The choice of such objects is small, but it exists and will grow over the years. Prices are higher than in the primary market. The main demand, therefore, falls on primary real estate, which is the main direction for investors. In summer, villas and apartments are actively rented to guests of the island. Before buying such objects, experts recommend that you definitely consult with a reliable local realtor in order to buy the right object in the territories of those residential complexes where there are already management companies offering their services for renting residential real estate. It is worth remembering that due to the high cost of buying a house for rent does not belong to the direction of investment with a quick return. It is bought primarily in order to secure assets in a growing and stable market. And also to get income during your absence on the island. The rental profit in Mauritius is around 4-5% per annum, and at the conclusion of a guaranteed lease agreement reaches 7% in three years. Real estate must be rented out through a management company, choosing residential complexes or resorting to the help of a reliable agency that will find such a company for complexes that do not provide such a service.

10. Reliable real estate purchase schemes

One of the main advantages of purchasing real estate in Mauritius is full transparency and reliability of the purchase and sale transaction. The laws of the French civil law system have been in force on the island for many years, which confirms their reliability and protection of the buyer from the occurrence of any force majeure.Most of the objects in Mauritius, experts say, are bought at the stage of marking the site. At the same time, unlike many other countries in the world, it is completely safe for the investor.

The acquisition of the property is carried out on the basis of the plan Vente en l'état futur d'achèvement (VEFA), which meets a number of serious standards put forward to developers and is a detailed step-by-step description of the project delivery and conditions for the buyer. In fact, this is the purchase of an object in installments according to the 2D and 3D plan of the future project, that is, an off-plan transaction. On average, the construction of residential complexes in Mauritius takes 18 months. The minimum term is 12 months, the maximum is 2.5 years. Ready-made objects are rented with furniture and all household appliances. An authorized specialist, Quantity surveyor, who has a state license and officially certifies each stage of construction, necessarily participates in the process.

To confirm its obligations, the developer is obliged to provide a bank guarantee Garantie financière d'achèvement (GFA), which is issued to him by a commercial bank in Mauritius and is a guarantee of completion of work. The developer passes this stage after obtaining a construction license and acquiring a land plot. To obtain a GFA, the developer is obliged to provide the bank with documents confirming that at least 60% of the objects to be erected have already been sold to buyers on the basis of pre-booking agreements.

Step-by-step process of buying primary housing in Mauritius:

1. Based on the pre-booking agreement, the buyer transfers 5% to the notary's account. This amount is frozen.
2. When the owners of 60% of the future objects transfer to the notary's account an amount of 5% of the cost of the objects under construction on the basis of a pre-booking agreement, the bank issues a financial guarantee for the completion of construction GFA.
3. Based on the GFA guarantee, the developer applies to the notary and clients for the second stage of payment, which is from 20% to 25% of the cost of the object.
4. Funds are transferred from the notary's account to the developer's account, and he provides clients with a construction plan indicating the end of each of its stages and the amounts as a percentage. Each stage is certified by a Quantity Surveyor.
5. A purchase and sale agreement is concluded with the buyers, and immediately the land on which the object is being built (and all future buildings) is registered as property in the name of the future owner. It is at this moment, if the conditions for the purchase of housing coincide with the conditions of the investment program, the owner can apply for a residence permit.
6. Construction begins.
7. At the final stage, the buyer pays 5% of the cost upon commissioning of the object, 5% upon delivery of the object to the client and signing of transfer certificates. It should be borne in mind that in Mauritius, very strict penalties are applied to developers, and if the client does not like something in the proposed object, the developer must solve this problem within the specified period. If no problem is found, the buyer pays the last 5% of the amount and becomes the happy owner of the dream house in Mauritius. 

Portal HomesOverseas.ru thanks for the help in preparing the article by Yuri Serzhantov (Stone Investment RUS).

_{фото: Stone Investment RUS}

HomesOverseas.ru