More South Africans expected to move to Mauritius as borders reopen
A sharp increase in demand for real estate in Mauritius is expected with the reopening of borders to South Africans vaccinated on October 1, said Séverine Dalais-Pietersen, marketing manager for Seeff Mauritius.
Air Mauritius resumed weekly flights to South Africa on October 1, with the island country lifting its travel ban for South Africans in September under conditions.
Prior to arrival, passengers must complete a health form and a passenger locator form. You will also need to present a negative PCR test performed within 72 hours of the last point of embarkation.
As the island braces for an influx of tourists, Dalais-Pietersen said there is a growing expat population which is fueling demand for new developments and further contributing to the dynamism of the sales and rental market. .
The island lifestyle, excellent infrastructure including good education, healthcare and a strong financial system, as well as attractive tax benefits including a 15% flat rate (individuals and businesses), are part of the package. appeal to foreign buyers and investors, she said.
Mauritius before the pandemic boasted one of Africa’s strongest economies and was elevated to a high income country by the World Bank in mid-2020. It has the highest per capita wealth in Africa at $ 31,900, followed by South Africa with $ 10,310.
About a quarter of real estate sales were made to foreign buyers during the pre-pandemic period, and Dalais-Pietersen expects this to recover quickly depending on the pandemic.
“There could even be a boom as buyers seek to escape the confines of the pandemic in their home countries. Keep in mind; few people have been able to travel in the past 18 months.
After French buyers, South Africans are the second largest sales volume, with volumes increasing rapidly – from 14% in five years to 25%. New World Wealth estimates that some 280 of South African dollar millionaires have settled in Mauritius since 2007.
Residential prices have increased by about 133% over eight years to 2019. The market is diverse between commercial and residential, offering opportunities for sale, rental and investment, said Dalais-Pietersen.
What are South Africans investing in?
Foreigners can only buy and invest in certain designated real estate developments, but these are in excellent locations, usually along the coast, said Dalais-Pietersen.
There are several new developments around the sought-after northwestern area near Grand Baie that are of interest to South Africans. The most exciting is “The Welnest Residential Hideaway”, opposite the 5-star Maritim Resort and Spa, halfway between Port Louis and Grand Baie.
It sits next to Turtle Bay, Mauritius’ first protected marine park and close to the Turtle Bay 18 hole championship golf course, business centers and schools.
“The development is operated by Maritim and offers 5 star resort amenities including direct beach and sea access, hotel services for all residences, restaurants, a leisure center with many features including a fitness center and spa, mediation bridges, yoga and tai. chi. “
Seeff highlighted a choice of two to four bedroom apartments, four bedroom penthouses, and three to four bedroom villas. Prices range from just over 5.8million rand (15.7million MUR) (plus costs) for a two-bedroom apartment.
The expected return on investment is 6-7% per year over ten years on average, or 4% guaranteed fixed return over five years, Seeff said. “There are attractive introductory prices and a down payment of only 10% is required to secure your unit,” said Dalais-Pietersen.
Visa options for South Africans when investing in real estate
Mauritius is a fabulous destination to own a vacation home, but growing numbers of South Africans are moving and retiring to the island, said Dalais-Pietersen. Given the accessibility to and from South Africa, it is ideal for second homes.
The investment needed for a residency visa now starts at just $ 375,000, up from $ 500,000 previously, as a real estate investment, the marketing manager said.
“Long-stay visas are now also available under certain conditions, which is a great option for remote workers or if you want to experience the way of life before you move permanently,” said Dalais-Pietersen.
Read: The cost and time it takes for South Africans to settle in Mauritius.