A Recession-proof Investment: Acquire Property on Paradise Island
While countries worldwide are facing an economic crisis in the aftermath of Covid-19 and amid the Russia-Ukraine war, real estate investors remain confident. The property sector is proving to be and Mauritius expects to attract Rs 12 billion of foreign direct investments (FDI) in property for 2022, compared to Rs 9,2 billion in 2020.
In the midst of rising inflation, interest rates are increasing around the globe adding pressure on mortgage interest rates, which can deter investment in property. On the other hand, stocks and bonds as alternative investment options are more and more volatile and risky, making real estate a safer investment in the long term.
In Mauritius, to make the buying process easier and more affordable for foreign investors, it is now possible for non-citizens to acquire property in partnership, under the fractional/shared ownership policy. Under this regime, each partner will be eligible to apply for the status of residency, provided that each partner invests more than USD 375 000 in the property.
How are our main markets reacting to the worldwide economic crisis? “ Our key markets are still buoyant including Europe. Furthermore , investors in some specific countries that were not prevalent before, such as Switzerland or Germany, are now interested in knowing more about the buying process in Mauritius ” says Timo Geldenhuys, Partner, Mauritius Sotheby’s International Realty.
To capture these emerging markets, the Mauritius’ local offices are engaging in informative campaigns and showcasing the finest properties on the island in partnership with the Sotheby’s International Realty global network. “ We are receiving positive feedback in terms of lead generation, and we forecast positive growth for the 2022-2023 financial year. Amid all the global economic turmoil and volatility, the property sector is holding firm and remains a safe investment in the medium to long term” adds Timo.
If you want to know more about the buying process and property investment opportunities on the island including the new possibilities around fractional/shared ownership, please contact us @ [email protected].