Exciting changes to legislation in Mauritius mean that SA buyers are no longer restricted to buying property in the island’s high-end IRS, RES and PDS developments.
“From now on,” says Berry Everitt, MD of the Chas Everitt International property group, “SA buyers and investors will also be able to buy apartments in any development that is more than two storeys high (G+2) and not built on leasehold land”.
“What is more, once approved by the Board of Investment, they will be allowed to acquire several apartments if they wish and let them out as they please to holidaymakers or longer-term tenants.”
He says that prices for apartments such as those specified in the new legislation start at around MUR4m (or just under R1,6m at current exchange rates) for good quality two-bedroom, one-bathroom units, while rentals for such units start at the equivalent of around R9700 a month, and that this will really open up the possibility of investment in Mauritius for many more South Africans as well as other non-citizens.
“And clearly, there is no shortage of demand for property on the island, as evidenced by the success of the IRS and RES developments and the more recent Property Development Schemes, where non-citizens have bought millions of dollars’ worth of upmarket villas and apartments over the past few years”.
“However, Mauritian property has been way out of reach for many would-be buyers, as the special schemes generally require a minimum investment of at least US$800 000 (or around R11,25m at current exchange rates), and there have been many calls lately to extend a previous but little-known facility that did allow certain non-residents to buy one apartment in a G+2 building for their own use.”
The result, says Everitt, is the amended legislation (Non-Citizens Property Restriction Act), which provides that non-citizens with security clearance may now acquire multiple apartments, and also that they may rent them out – as long as these properties are located in G+2 buildings that are not located on the “Pas Geometrique” (leasehold) land that makes up most of the island’s coastal “front line”.
“There are thus very few restrictions now, and Park Lane Properties, which is our Mauritian associate in the Leading Real Estate Companies of the World© (LeadingRE) network, says that there are many established and new apartment developments in very desirable locations that not only offer excellent value but are also in high demand among both short-term and long-term tenants“.