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.
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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
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