Countries that rely on local investors to drive their property market are more affected by interest rate hikes and rising inflation when making their property buying decision.
“Here in Mauritius, we are fortunate in the sense that the majority of luxury property buyers are foreigners and only a very small percentage of them seek bank financing when purchasing a property on the island. As a result, the hike in interest rates does not greatly affect the market as a whole. Moreover, when global markets are volatile, the safe option for investors will be property acquisition and we can see this trend of portfolio diversification into our Mauritian property market,” says Timo Geldenhuys, Partner, Mauritius Sotheby’s International Realty.
As travel and business continue to open back up, international property owners are eager not just for spacious, ultra-luxe resorts and developments but also for footholds in prominent international hubs, including fiscally advantageous destinations like Mauritius.
“The prevailing market trend is also an interesting factor. Our traditional prime feeder markets are France, representing more than 40% of our international buyers, and South Africa, representing more than 20%. Furthermore, we can see that there is also a large increase in inquiries from Nordic and Germanic countries. The UK market is also showing a greater interest in our destination and our property offers.
To summarise I would say that in 2023 the Mauritian luxury property market will continue to follow a positive trend, especially if the government remains proactive in welcoming FDI to the island. All is set for Mauritius Sotheby’s International Realty to have another very successful year, ” adds Timo.
Published on January 31, 2023 by Laetitia Melidor
