Seychelles is primarily notable for the fact that there are many of them - more than a hundred objects, although only 33 of them are inhabited so far. And this is undoubtedly an advantage - the real estate market and infrastructure has room to grow, while there is even an opportunity for especially active and talented people to show themselves.
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This is evidenced by the sensational story of an Englishman in the world media, who bought a tiny uninhabited island in the Seychelles for $ 13,000 and moved there forever, leaving his job and all his past life at home. For almost 40 years, the enterprising Robinson Crusoe planted hundreds of trees with his own hands, improving more than one kilometer of paths, and also revived the rich world of local fauna - as a result, the prince of Saudi Arabia offered the Englishman $ 50 million for the island and was refused, in which it was said that the national the park is not for sale.
Of course, not everyone is able to create their own version of paradise on earth, but the fact that most of the islands that make up the Seychelles are not only inhabited, but also landscaped at the highest level helps here - it is on this segment that the local market is bet real estate. At the same time, the cost per square meter of premium real estate housing in 2019 remained at the same level as last year.
The average price of residential real estate in the Seychelles now fluctuates in the range of 3000-4500 dollars per sq.m. Now there are several unique projects approved by the government, where foreign buyers can purchase real estate on special conditions, that is, very quickly, and this is an important characteristic for Seychelles: if a foreigner acquires a land plot outside these investment projects, then the purchase process can take about one year ...
Investment market and construction
Today, in the Seychelles, housing is being built by a number of well-known Indian contractors (their services cost about $ 1,000 per square meter), who, although they do their job at a fairly high level, still require regular adjustments to all processes. Therefore, experienced local market developers advise everyone who wants to dive deeply into the local housing market to stay in the country as long as possible to control all levels of work, so that in the future it is possible to guarantee the quality of construction or have a reliable local partner.
As for a more creative way - for example, when there is a desire to create an investment project - in the Seychelles it is necessary to get its approval. It was for such needs that the Seychelles Investment Bureau was created here, the main task of which is to provide assistance in investment and commercial projects, including those related to real estate.
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Who is buying?
When analyzing many investment projects, among which there is a demand from foreign investors, there is an increase in the number of South African buyers (this is rather due to geographical factors) who buy local properties as their main home, that is, for personal use, as well as as holiday homes. including as an investment. Also, among the buyers, many investors from Eastern Europe, in particular from the Czech Republic, were noticed.
Experts have noted a decrease in demand recently, but work to promote the Seychelles as a destination for recreation and investment continues and has a positive effect on the attractiveness of this region for foreign buyers. At the moment, the share of Russians is approximately 4-5% among foreign buyers of real estate in the Seychelles.
Seychelles is far from the most accessible tropical and other places with 24-hour sun, so to achieve the necessary level of comfort in these parts, you will need an impressive budget of $ 350,000 or more.
Pros of buying real estate in Seychelles
The advantages of purchasing local square meters primarily include the wonderful climate that is observed here all year round. No tropical storms or cyclones threaten the islands, which also do not have dangerous species of animals or insects. This is a very important factor, since many interesting places around the world for potential property buyers are excluded due to the presence of fauna, which can scare and threaten the health of those who are not accustomed to such a specific environment from birth.
Another not insignificant bonus, which tempts in favor of buying a home in the Seychelles, is the ability to get a residence permit quite easily. If we are talking about the purchase of housing with an eye to generating income from investments, then the approximate return on the Seychelles will be approximately 3-6%.
The cost of rent here, as in the rest of the world, varies from property to property depending on cost and location. But it is important to remember that almost any real estate in the Seychelles is famous for being exclusive, therefore, with an original presentation, it is possible to increase the profitability of real estate.
In addition to the indisputable advantages, the Seychelles also have disadvantages - due to the fact that until 1976 these lands were a colony of Great Britain, any state bureaucratic procedures last long enough. Therefore, when buying a Seychelles home, it is so important to turn to experienced specialists in time, who will not allow the procedure to be dragged out beyond measure.
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Flaws
As for real estate expenses, the main ones will be the tax on main land in the amount of 17.5% - outside the designated and approved by the state zones for investment projects (for private houses and land), and the tax on rental housing, which is today in the Seychelles is 15%.
Thank you for your help in preparing the material:
Cedric Bella, real estate expert at Property Investor
