Real Estate Investor Magazine South Africa May/ June 2020 | Page 42

MAURITIUS Mauritius - a property hotspot for investors P am Golding International has seen a steady demand in recent years for offshore property investment in Mauritius, especially among South Africans. The attraction is manifold, but topping the list is the island’s close proximity to SA, as well as the residency component of investing there, which can be passed on to the investor’s children. A business-friendly environment, favourable tax rates, should the buyer be a tax resident, and strong capital growth are among the other reasons Mauritius is such a sought-after investment. “Economic growth, supported by a stable infrastructure that encourages and rewards investment, is a large component of an offering that is made even more attractive by what the island serves up in the lifestyle department,” says Richard Haller, director for Pam Golding Properties Mauritius. These include first-class tourism that is eco-friendly and conservation-minded; world-class shopping facilities, resorts and designer golf courses; a sound education system; a burgeoning entertainment industry; and a fast-growing IT and manufacturing sector that further boosts local industry with job creation. Among the unique investment opportunities presented by Pam Golding Properties (Mauritius) are Mont Choisy Le Parc Golf & Beach Estate, situated on the north western coast of Mauritius in an old sugar plantation alongside Mont Choisy Beach in the heart of Grand Baie. The estate sports an 18-hole championship golf course designed by Peter Matkovich as well as first-class beach and country club facilities. And Tamarina Golf Estate on the island’s sunny west coast occupies prime elevated real estate overlooking the Rempart River towards the ocean. This development will maximise views but respect seclusion and the preservation of the area’s natural history with Akasha, a four-phase precinct that will house three- and six-bedroomed villas that will blend seamlessly into their natural surroundings. “To date we have sold close to approximately 1 000 units, of which about 700 were to South Africans looking for a strong offshore investment which they can use as they get older, but then also pass down the permanent residency component to their children. The added attractiveness of Mauritius is the proximity to South Africa and the fact that there is a strong business environment with low tax rates, should the buyer be tax resident. The demand has remained steady over the past few years,” says Richard Haller director of Pam Golding Properties Mauritius: An evergreen investment Mauritius has been ranked number one in Africa in leading global indices and is regarded as having one of the best- administered economies in the world. The island nation has also been dubbed the happiest country in Africa (according to the 7th World Happiness report) due to its quality of life. Mauritius is increasingly becoming a drawcard for international investors wishing to build long-term wealth through property investment. 40 MAY/JUNE 2020 SA Real Estate Investor Magazine According to AfrAsia Bank’s Africa Wealth Report 2019, Mauritius was placed 11th on its total wealth rankings list and first on its wealth per capita rankings for 2018. With a wealth per capita of US$31 000, Mauritians are considered the wealthiest individuals in Africa. South Africa (US$11 450) and Namibia (US$9 400) are second and third respectively. The report goes on to explain that wealth per capita is a better reflection of the financial health of a nation than GDP per capita. Among other factors, GDP doesn’t account for income levels in a country, ignores the efficiency of the Confidence in the growth of Mauritius as a prime property investment opportunity can also be attributed to the following: Thriving & growing financial services sector Rising residential & commercial property prices Significant influx of high-net-worth individuals (HNWIs), mainly from Europe and South Africa, into Mauritius in the last decade, with the number of locally based HNWIs growing to around 4 400 compared with 1 800 a decade ago Strong ownership rights that encourage locals and foreigners to invest in property & businesses in the country Low taxes (15% income tax with no inheritance or capital gains tax) that promote business formation & appeals to retirees Low level of government regulation or intervention in the local business sector Low unemployment & inflation rates Well-developed banking system & stock exchange that encourage people to invest within their country and grow their wealth locally Freedom to invest overseas by locals (with no exchange controls), thus encouraging wealthy people to use the country as a business & investment hub Well-developed free media that allows the dissemination of accurate information Strong FDI inflows from France, China, South Africa & the UAE (according to the Bank of Mauritius) Permanent residency programme that applies to those buying property of US$500,000 and more in Mauritius local banking sector and local stock market and ignores the impact of property and stock market moves, which have a massive impact on wealth. In contrast, wealth per capita figures do not have these limitations. From 2008 to 2018, Mauritius was the top performing individual market in Africa with a growth rate of 124%, and also the fastest growing wealth market worldwide during the same period after China. In its 2018 to 2028 forecast, the Africa Wealth Report 2019 expects Mauritius to lead the way as the strongest performing wealth market with a 90%- 150% growth rate. The total private wealth held in Africa is expected to rise by 35%, reaching US$3 trillion by 2028. The island nation was also declared the most promising emerging African market for private banking going forward. In addition, Mauritius was ranked number one for ease of doing business in Africa (and 20th worldwide) in the World Bank’s 2019 Doing Business Report. The attractiveness of the financial growth forecast is complemented by the fact that Mauritius is regarded as one of the safest countries to live in Africa. This according to New World Wealth’s 2018 Global Wealth Migration Review. For more information on purchasing property in Mauritius, visit www.pamgolding.mu or contact [email protected] SOURCE Pam Golding Properties Mauritius SA Real Estate Investor Magazine MAY/JUNE 2020 41