2023/24 Budget - Key Real Estate Highlights

The 2023/24 National budget of Mauritius was presented by the Minister of finance, the Honourable Renganaden Padayachy in June 2023. FDI figures published by the Bank of Mauritius for the year of 2022 stood at Rs 27 billion with main market contributors being France and South Africa. Real Estate activities accounted for 54% of gross direct investment flows.

Property acquisition growth into registered property schemes totalled over 600 units generating Rs 15.4 billion in sales, with both the real estate and construction sectors forecasted to grow in 2023. We breakdown some of the key real estate takeaways below:

Applicable to Mauritian citizens:

• Home ownership scheme will be extended to 30 June 2024, which provides a rebate of 5% of up to Rs 500,000 on the purchase of a house, flat or land.
• Home loan payment scheme will be extended to 30 June 2024, which provides a rebate of 5% up to a maximum of Rs 500,000 to applicable citizens taking out a housing loan for their purchase. 
• Amendments to the criteria on VAT refund for residential buildings relating to the cost of building a residential house or flat have been reintroduced where individuals can now apply for a VAT refund whose construction costs do not exceed Rs 3 million.
• Payment facilities will be offered to lessors of state-owned land on a casa-by-case basis who are facing financial difficulties.
• A new legal framework will be drawn up by the EDB Mauritius to regulate the provisions of VEFA and the functions of syndic.

Applicable to Foreigners:

• Foreigners holding a Residence or Occupation Permit will be entitled to purchase a residential property in mauritius outside of existing non-citizen schemes under the following conditions: the price of the property must exceed USD 500,000, the area must not exceed 1,25 acres, not be located on public or state-owned land, and and additional registration fee of 10% will apply. 
• The sale of serviced land with Smart City projects to eligible foreigners holding a residency permit has been extended until 30 June 2026.
• Retired non-citizens and their families will now be eligible for a residence permit on the purchase of a property in a designer senior residence project for a minimum price of USD 200,000.
• The new Sustainable City Scheme will now also grant a mauritian residence permit to the owner and his/her family after the acquisition of a property for the minimum price of USD 375,000.
• Application and registration fees for RES, IRS, IHS and SCS will be harmonized, and a new application fee for the acquisition of a G+2 apartment will be implemented to the value of Rs 25,000.

Social housing initiatives:

• 360 social housing units at La Valette and Mare d’Albert to be completed by December 2023.
• 8,000 housing units to be constructed in the next 18 months.
• Rs 40 million to be set aside for the removal of asbestos and rehabilitation of ex-CHA housing.
• Rs 500 million will be provided for the upgrades of 70 primary schools

Infrastructure and development:

• Rs 3.4 billion to be invested into building and extension of new road networks.
• Rs 600 million set for the rehabilitation, maintenance and upgrading of existing roads.
• Rs 420 million earmarked for the completion of various road construction projects in the next year.
• Rs 360 million allocated for the completion of the A1-M1 linking Coromandel and Soreze.
• Extension of the metro project to connect St Pierre and La Vigie