Mauritius More Attractive As South Africa Real Estate Investments Collapse

More South Africans are considering real estate investment and offshoring in Mauritius as the island continues to introduce changes to make it an attractive investment and residence choice, against the backdrop of the collapse of real estate investments on national soil.

Gavin Butchart
Mauritius has started to ease restrictions with a phased approach and opened its borders last week to vaccinated travellers (for now, excluding South Africans) and will open more from October 2021 to travellers fully vaccinated, subject to a negative PCR test 72 hours before boarding, welcome vacationers, residents, investors and returning travellers to the island.

Unlike the local market, where property values ​​have largely stagnated and declined in many regions, in 2018 property prices in Mauritius were 133% higher than in 2010 and continue to grow.

The recent 2021/2022 annual budget presented by Dr the Hon. Renganaden Padayachy, Minister of Finance, Economic Planning and Development in June 2021 also seems to support the decision to ease the entry of foreigners and their families on the island with the Economic Development Board (EDB) qualifying this budget of “Better Together” and could potentially open up a whole new world for Mauritius and foreign investors.

Here are some of the highlights from the recent budget speech.

Gross direct investment (inflows) for 2019 was 21 billion rupees while for the first 3 quarters of 2020 (January-September) was 9 billion rupees, largely contributing to real estate and financial and financial activities. insurance. In terms of markets, France and South Africa represent the main sources of foreign direct investment flows, led by the United States, the United Kingdom, Switzerland, the UAE and India.

Mauritius lost 17.9 percentage points of GDP growth, contracting 14.9% in 2020. International projections for the country are optimistic, with a strong recovery expected in the medium term. The African Economic Outlook, released in March 2021, forecasts GDP growth of 7.1 percent on average for the next two years, while the IMF’s WEOs, released in April 2021, estimate a growth rate of 6.6. % for the year 2021.

Despite a depreciation of the rupee, the headline inflation rate for the year ending 2020 stood at 2.5% with a consumer price index of 106.1 in December 2020, while inflation overall for the 12 months ending May 2021 was 1.8%. The IMF’s WEO, published in April 2021, plans to resume an upward trend in the inflation rate to 2.6% in 2021.

Despite a depreciation of the rupee, the headline inflation rate for the year ending 2020 stood at 2.5% with a consumer price index of 106.1 in December 2020, while inflation overall for the 12 months ending May 2021 was 1.8%. The IMF’s WEO, published in April 2021, plans to resume an upward trend in the inflation rate to 2.6% in 2021.

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