The resale of real estate in Mauritius
Reselling your property in Mauritius
Real estate is a booming sector in Mauritius for many reasons. Firstly because the Mauritian is inclined to want to become the owner of his home as soon as possible and prefers to repay a loan than to pay rent, and then, for non-citizens, because Mauritius offers them many advantages and benefits and among others : its favorable taxation, its tropical climate, the quality of life it offers, a diversified culture, excellent air transport connectivity, modern infrastructures, a solid banking sector, a favorable business climate, are reasons that boost the real estate market.
Real estate acquisition to resell
Economic growth supports the emergence of a middle class which likes to invest in brick. For most of them, the goal of buying real estate is to own a primary home, with varying budgets. For others, with more resources, it is to invest either in a secondary home or in rental investment or to rely on the capital appreciation of the property over time to realise a good capital gain on resale.
The Mauritian authorities have since 2002 facilitated the acquisition of real estate for foreign buyers in private golf estates, marina, into sea front integrated resorts or smaller luxurious residences with a gym or spa. These foreign buyers invest in Mauritius for various reasons: to diversify their real estate portfolio with or without rental return, a secondary home, looking for a permanent residence permit, for fiscal residence or to retire.
Buying real estate in Mauritius above US $ 500,000 in one of these approved offers permanent residence. This opens the real estate market for resale, which can prove to be lucrative. On average, real estate in Mauritius appreciates between 3 to 5% per year. But it is not uncommon to see capital gain exceeding 40 to 50% and in some cases even more, especially when the property was bought off plan and in a strategically well-placed area (beachfront, popular region, strong rental demand for example).
Real estate agencies which specialize in the marketing of these apartments, villas and other luxury homes for foreign buyers, play an important role in the real estate market in Mauritius, especially in the resale market. It is essential to be initially well advised by a real estate agent who has the experience and properties in mandate, in order to invest in the right property and have a better chance to make a good capital gain later.
Resale of a new or old property
The resale of real estate is obviously done with the purpose of generating added value, but investors’ expectations on that gain differ. For those who have invested with the sole purpose of realizing a capital gain at resale and who would in these cases most probably have expected a rental return, it is essential to buy a property strategically well placed: firstly, in order to get the best possible rental returns, the property should be located in an area near the beach or offering beautiful sea views, essential services to tourists and a good offering in general; then, the purchase price must allow an appreciation of the property over the next 5 years at least. The rental yield obtained will be a favorable argument for a better resale.
Others do not necessarily buy a property in Mauritius with the intention of achieving a significant capital growth or to realise a rental yield. The objective is then rather to make a first purchase in order to obtain permanent residence (the property must therefore be above US $ 500,000), and enjoy a better quality of life. These non-citizens will generally live in the purchased property, and then consider reselling it after a few years, expecting a reasonable appreciation in order to reinvest in a new property offering them better benefits, usually for a higher price.
Valuating a property for resale
In order to fix the resale price of your property, you will have to consider various criteria. The first step is to check the market prices. Real estate professionals can help you with this. With their knowledge of the market, real estate agents can give an estimate of the price of your property, considering the properties for sale around you. The value of the property will depend on the year it was built, its general condition, the state of the garden if there is one, the specifications, the estate in which it is situated, the rental potential and the income that it can generate, among others.
Enhancing the value of your property when reselling
In order to increase the value of your property at resale compared to the initial investment you made and any renovations and additions you did to the property, whether new or old, you must enhance it. It is therefore important that visitors have a good impression of the property from the first visit. The major criteria for this is cleanliness and order. Make space by removing all bulky items, personal decorative items overloading the interior and try to make it as neutral as possible. Personal belongings must be tidy to give potential buyers the freedom to project themselves into your home. Show your property in its best possible state. If necessary, do some maintenance work, such as repainting walls. Also be sure to maintain and enhance the exterior. Any home-staging work will help you upgrade your property and expect a good resale.