Lexpress Property Trends Lexpress Property Trends EN Light Version | Page 23

THE MAURITIAN MARKET AND ITS SPECIFICITIES: PROPERTIES ACCESSIBLE TO FOREIGNERS
selling price. It is when a RES unit’s
price exceeds
500,000 ( 370,000)
that a buyer becomes eligible for a
residence permit in Mauritius — given
that he meets the required conditions
for acquiring it. This permit will be
valid for 3 years. After this period,
the buyer can apply for a permanent
one, renewable after 10 years. The
registration fee for RES units is either
of
25,000 (approximately
22,000)
or costs 5% of the purchase price,
whichever is higher. Similar to the IRS,
RES units are sold on the basis of an
off-plan contract (VEFA).
I
Thanks to the Invest Hotel Scheme
(IHS), real estate developers of the
hospitality sector can sell a room, an
apartment or a villa which form part of
a resort to an individual. In this case,
it is the company in charge of the
resort that will be entrusted with the
management of the property. While
this structure tends to simplify the
overall financing process of new hotel
projects, individual buyers benefit from
all the facilities of a furnished hotel
complex: its restaurant services, spa,
health and wellness centres, swimming
pools, modern business centres, room
service and the assurance of a rental
income.
A hotel project under the IHS
programme may be developed either
on freehold land or on leasehold land.
However, the land must broaden over
an area of more than one hectare.
Units, or other parts of the hotel, maybe
sold:
• Off-plan
• During the construction phase
• Once the
complete
construction
phase
sale, the acquisition of the property
is made according to the off-plan
contract (VEFA), governed by the Civil
Code of Mauritius.
Launched in 2015, the Property
Development Scheme (PDS) has
replaced the IRS and RES programmes
to streamline offers for new residential
projects into a single scheme. While
it combines the specificities of both
schemes, the PDS programme is
essentially an integrated project which
focuses on social aspects to benefit
the neighbouring community. It also
allows the development and marketing
of upscale residential units, mainly to
foreigners.
It is noteworthy that at least 25% of
the residential properties developed
under the PDS programme must be
sold to Mauritians and members of
the Mauritian diaspora. The Property
Development Scheme contributes
to the development of luxurious
residential units on freehold land with
an area of at least 0.4220 hectares
(1 acre) and not exceeding 21.105
hectares (50 acres).
These units should also include:
high-quality public spaces to help
in promoting social interaction and
developing a sense of belonging to
the community; upscale recreation
facilities and commodities to enhance
the standard of living in the residential
units
day-to-day
management
services offered to residents - including
security, maintenance, gardening,
solid waste collection and cleaning
services, and demonstration of social
contribution to social infrastructure,
community development and other
facilities for the well-being of the
community.
is
There is no mandatory minimum
investment for the purchase of a room,
suite or a distinct part of the hotel when
it comes to the price of IHS units. For
the purchase of a private villa governed
by this scheme however, a minimum
investment of
500,000 is required.
The registration fee of IHS units is
calculated at 5% of the purchase price
in the case of the acquisition of a room,
suite or any distinct part of the hotel.
For private villas, the registration fee is
of 70,000 (approximately
52,000).
An IHS unit is sold off-plan, during
the construction phase, or after its
completion. In the case of an off-plan
A PDS project should imperatively
consist of at least 6 residential units,
including a combination of luxurious
villas, apartments and penthouses
with exclusive services and facilities.
The area of land accommodating each
residential property — other than an
apartment or a penthouse — must not
exceed 2,100 square feet, excluding
common areas. There is no restriction
for the minimum sale price of a PDS
unit.
Mauritius is now shifting to the Smart
City concept, whereby a developed
urban area helps in promoting
sustainable economic progress and
a high quality of life. It transcends
different
key
areas:
economy,
mobility, environment, quality of life
and governance. In order to succeed
these areas, a strong human and
social capital and or IT infrastructures
are required. A Smart City is one
which aims at optimising the use of
existing infrastructures in transport,
construction and governance of the
environment by using technological
innovations, in conjunction with
information
and
communication
in its different sectors. Smart City
programmes are moving towards
the democratisation of advanced
technology and the development of
citi en skills.
The Smart Cities of Mauritius shall
provide mixed-use developments,
including
offices
and
business
infrastructures, as well as residential
and leisure facilities. These cities aspire
at creating an environment conducive
to your everyday life, work, and leisure;
to generate their own energy resources;
and to provide advanced connectivity,
a modern transportation system and
to reduce traffic jams. The concept
goes further as it sheds a light on the
promotion and coordination of planned
land use and on the development
of these areas, while respecting the
sustainable economic development
strategy advocated by the Mauritian
authorities. Finally, Smart Cities will
develop into platforms promoting
targeted economic activities in order
to increase Foreign Direct Investment
and exportation to growing economies.
They shall also strengthen their
industrial and service foundations, as
well as a diversified economic path.
The Smart City projects in Mauritius are
Medine Smart City ( niciti), Moka Smart
City, Mon Trésor Smart City, Beau Plan
Smart City, Cap Tamarin and Mauritius
Jin Fei Smart City, among others.
Apartments in G+2
In addition to the various IRS, RES
and PDS programmes — all of which
are now grouped under the Property
Development Scheme — and the
acquisition via the Smart City Scheme,
the Non-Citi ens (Property Restriction)
was amended in December 2016 to
give rise to another development: the
possibility for foreigners to acquire
one or more apartments in a building
or group of buildings of a minimum of
2 storeys above the ground floor. As
opposed to what was the case before,
they can now do so without being in
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