Residential property buyers continue to flock to Mauritius. Michelle Swart finds out more
Published: 2011/10/21 09:48:33 AM
WITH a strong economy which has remained resilient in the face of a global economic crisis, Mauritius is proving increasingly appealing to international property purchasers.
With personal and corporate tax at 15%, Mauritius has no foreign exchange control, free repatriation of profits, dividends and capital, and double taxation agreements with 33 countries — including SA. Rated first in Africa in the 2011 World Bank’s Doing Business Report, Mauritius is ideally positioned to do business on an international level.
Fabrice Orengo de Lamaziere, a director of Pam Golding Properties’ International & Projects Division, reports that during the past three years alone they have sold in excess of 120 apartments and penthouses on the island at a total sales value of over R600m. Of these, 78 upmarket residential units at a combined value of in excess of R400m were sold in just three Real Estate Scheme (RES) projects — all successfully developed by South African developers 2Tribes. Real Estate Schemes comprise freehold residential property with individual erven below 10ha in size, which can be purchased by foreign buyers.
Says De Lamaziere: “From 2003 until some three years ago, the bulk of residential properties in Mauritius which were sold to foreigners were expensive villas that were purchased by affluent Europeans or South Africans as leisure homes, where they would spend a few weeks or months a year on holiday.
“With the global economic crisis this market began to slow down. Although there is still a European market comprising mainly French buyers for these large villas, which are generally priced at over R9m, the Mauritian market managed to re-invent itself with a new ‘breed’ of property — appealing lock-up and go, often luxurious apartments which the owners visit for short holidays several times a year and which generate rental income for the rest of the year.
“These apartments, which attract many South African buyers, are priced from R2,5m, and although mortgages are available in Mauritius, most of these apartments are purchased with cash,” he says.
Following the recent RES legislation that provides a legal framework for foreigners to purchase this type of property and riding the crest of the wave of this new form of residential development, 2Tribes has been extremely successful in bringing to market appealing, well-designed apartments near the world-renowned tourism capital of Grand Baie.
The town is considered the most popular destination and residential location on the island — as well as being the collection point for boat trips.
In 2008 Dean Yeadon launched 2Tribes in Mauritius. Utilising the experience and network of contacts gained as CEO of Halcyon Africa Hotels and 2Tribes’ residential and leisure developments in Cape Town, Johannesburg, Zanzibar and Tanzania, Yeadon has successfully launched a number of residential and commercial projects in Mauritius, including Cape Bay, Element Bay Beach, Element Bay Resort, La Residence and Grand Baie Business Quarter, generating revenues for the company of over R500m. Working closely with South African architects and interior designers to create homes and offices which are contemporary, stylish and functional, 2Tribes brings a touch of African charm to an island increasingly vibrant with both business and lifestyle potential.
Importantly, owners of the apartments in 2Tribes developments are able to join a rental pool which markets their units to the growing tourism market visiting Mauritius, with rental income generating promising returns on investment between 4% and 7%.
Associated with 2Tribes as exclusive agents from the outset, Pam Golding Properties has successfully sold these three developments. At Cape Bay, with cafe, lap pool and concierge and within walking distance of the beach, 42 of the total of 49 modern, luxury apartments have been sold at a total value of R205m and handed over to purchasers, while at La Residence, an exclusive resort comprising only 26 simplexes and duplexes in a lush garden setting also a stroll from the beach, 20 units have been sold for R100m. At the third development, Element Bay Beach, 16 of the total of 19 high-end apartments have been sold for R96m. With a gym, swimming pool, water sports equipment and concierge, this development is directly opposite the beach. Construction is under way and should be completed within the next 12 months.
Says De Lamaziere: “Following the strong demand for these developments an extension of Element Bay Resort has been launched with 30 two- and three- bedroom, simplex and duplex units all enjoying the same amenities as Element Bay Beach, and priced from R2,8m. Ideal for family holidays, getaways or for those seeking a comfortable retirement, Element Bay Resort is located a few minutes from Grand Baie, known as the St Tropez of Mauritius. This development offers owners access to a wide variety of attractions, which in addition to some of the best beaches in the world include vibrant restaurants, sought after shops and state-of- the-art sports facilities.”
Providing easy access to a picturesque beach, Element Bay captures the essence of luxury, island- style living in a resort environment. While the apartments overlook the resort’s swimming pool, residents can also benefit from the wide array of water sports facilities provided by the nearby Coin de Mire Hotel. Each apartment has a parking bay, as well as a private terrace or balcony while ground floor units have private terraces extending into the tropical, landscaped garden. In a contemporary design and with superior finishes, furniture packages are also available on request.
De Lamaziere says that the ongoing resilience and strength of the Mauritian economy is evident “not only in the real estate industry, with many residential developments catering for local buyers currently under way, but also in the retail sector. Mauritius’s first super mall, Bagatelle, Mall of Mauritius, opened at the end of last month, comprising in excess of 40000m² . Developed in a joint venture between Mauritius’s ENL Group and South African developer, Atterbury Property Developers, the mall’s anchor tenants include Pick n Pay and Woolworths, while the main architect is Gauteng-based Boogertman & Partners. Pick n Pay has also committed to two new regional shopping centres — on the west coast and in the Grand Baie area — which are being developed in conjunction with the South African company, Retail Africa.”
Contact: Pam Golding Properties Fabrice Orengo de Lamaziere 082 492 9756 Office 021 762 2617