Why Mauritius Attracts Real Estate Developers in Africa
Mauritius, although a popular tourist destination and already well-developed in terms of accommodation, is largely an untapped investment opportunity for real estate developers in Africa.
In this article, we’ll provide a glimpse into what makes it attractive for investors, companies wanting to expand their retail and commercial presence, and real estate developers in Africa, helping to identify potential investment and development opportunities in the country. View details of the St Helene Artemis Hospital, as one of GREA Africa’s latest property development projects in Mauritius.
Basic information about Mauritius
The island state has a population of only 1,3 million citizens according to the World Bank, but with its large tourist sector, it gets thousands of international visitors to its shores every year. What’s impressive about the country’s economic stability is the fact that it earned high-income country status amidst the COVID-19 pandemic in 2020. However, as could be expected, the worldwide lockdown regulations also had a negative impact on the country’s economy. Recovery has been slow, but the World Bank Mauritius Report, published at the end of March 2021, details crisis areas and core components for recovery, giving investors insights into development opportunities going forward.
Recent changes in real estate regulations
During the 2020-2021 budget presentation, measurements were introduced to make it easier to conduct business in the country. Property transfer deeds must be submitted accordingly, using the Mauritius E-registration System. The government also made it compulsory to obtain a Building and Land Use Permit online for any type of construction project.
Foreign investors who wish to work, stay or take permanent residence in the country can get serviced land or plots of 2 100 sqm or smaller for residences located in Smart Cities until the end of June 2022 (Source). To qualify, the investors or real estate developers must be in possession of the necessary residence, permanent residence or occupational permit. The government also announced that the building of residences on these plots should be completed within a period of five years.
Another far-reaching change in legislation to attract more foreign investors is that professionals in possession of occupational permits and people who have retired and have residence permits, can now invest in various ventures without having to deal with restrictions on shareholding. Non-citizens with residence permits in Smart Cities or under the IRS, PDS and RES real estate schemes don’t need to get work or occupational permits to invest in the country.
More about the Property Development Scheme (PDS)
The PDS is a Mauritius government initiative to attract foreign investment and real estate developers in Africa to its shores. It has replaced the RES and IRS regulations of before, thereby doing away with the maximum land area limitations. To benefit from this, the investor must purchase real estate with services. This can be property with a spa, communal sports area and guard servicing. Under this scheme, the investor doesn’t pay property, wealth, inheritance, or capital gains tax. Fixed-rate tax applies.
This initiative makes investment in property development rather attractive with lower investment layout required than with European countries. The country also boasts a rather stable political landscape.
Investors and companies looking to expand their footprints to Mauritius benefit from the expertise offered by GREA Africa. As real estate developers on the continent, the Group provides turn-key solutions for multinationals seeking to expand their footprint on the continent, whether in commercial, corporate or industrial developments. Reach out for more information about the services offered for developments in Mauritius.