Mauritius' Luxury Property Market Defies Global Economic Trends
The ongoing sluggishness in the global economy has inevitably impacted the property sector worldwide. However, the high-end estate market in Mauritius, an Indian Ocean island nation, is bucking this trend with remarkable resilience.
Insights from a Key Player
Murray Adair, CEO of the Indian Ocean Real Estate Company (IOREC), which is currently developing several luxury resorts in partnership with Flacq United Estates Limited (FUEL), sheds light on this phenomenon. Adair notes that while the broader property market has experienced a slowdown, sales transactions in upmarket resorts on the island remain robust.
The Integrated Resort Schemes (IRS) Factor
Adair attributes this resilience, in part, to the Mauritian Government's Integrated Resort Schemes (IRS), designed to attract foreign direct investment. Under the IRS, foreigners who invest $500,000 or more in designated resorts are granted permanent residence in Mauritius, contingent on their ownership of the property.
Sales Performance Under IRS
- Notable Sales Figures: Adair highlights that more foreign ownership-approved units were sold in 2011 than in the entirety of 2009 and 2010 combined.
- Success Story - Azuri: Over 50% of the properties at Azuri, a forthcoming luxury beachfront village located about 25 km from Port Louis on the northeast coast, have been sold off-plan since its launch in September 2011.
Mauritius' Enduring Appeal
Despite the International Monetary Fund's downward revision of Mauritius' 2012 growth forecast from 4.1% to 3.8% in January, Adair emphasizes that the country retains its allure as both a tourist destination and investment hub. The tourism sector significantly contributes to the island's GDP, accounting for 15% and standing as the largest foreign exchange earner.
Future Outlook
Adair concludes that the Government's efforts to diversify the economy further, enhance investments from the Far East (including China, Russia, and India), will bolster the island's long-term growth potential.