With the slogan ‘Better Together’ the Economic Development Board of Mauritius presented a highly favourable and aggressive budget stimulus totalling Rs 162.6 billion (USD 40 billion) to reignite the Mauritian economy. For construction and real estate, the measures announced ensure short and medium-term growth. Investment into public infrastructure is aimed at building long term resilience, widening opportunities and facilitating businesses by improving productivity and also improving the overall quality of life for the Mauritian population.
Real Estate activities are the fifth largest contribution of the industry group to GVA contributing approximately 7%, with Finance & Insurance activities the leader at approximately 13% amounting to Rs 49.2 billion.
The Government will invest Rs 65 billion in priority projects over the next three years. These include:
• Rs 11.7 billion for the National flood management programme
• Rs 12 billion for the construction of 12,000 social housing units
• Rs 4 billion for projects under the Economic Recovery Programme
• Rs 9.4 billion to improve water supply and construction of new dams
• Rs 5.7 billion for community development projects
• Rs 22 billion for land transport projects including roads and the extension of Metro Express railway
The Economic Recovery Programme includes roads, sports amenities, beaches, cleaning of rivers, rehabilitation of heritage and tourist sites, renewable energy projects such as solar, and improving public service delivery. Many localized communities also stand to benefit from the creation of market fairs, multipurpose complexes, and sports centres.
In addition to the 12,000 social housing units being constructed, Rs 2 billion will be earmarked to support the purchase of residential land, property and the construction of housing units for Mauritian individuals. A Mauritian citizen purchasing a house, apartment or land parcel during the financial year 2021/22 will receive a 5% rebate up to the maximum value of Rs 500,000. Those requiring a Home Loan will also benefit from a refund of 5% of the Home Loan up to a maximum of Rs 500,000.
An amendment to the exemption of registration duties for first time home buyers will also be implemented on the first Rs 5 million on residential property, where previously this was restricted to properties whose values were below Rs 5 million. This brings the total potential rebate for Mauritian buyers up to Rs 1.25 million.
The government will also be working closely with commercial banks to introduce a mortgage scheme to cover 80% of housing loans for self-employed and contractual employees and up to 100% of housing loans for other individuals.
Foreigners and non-citizens holding an occupation, permanent residence, or resident permit will be able to purchase serviced land plots in Smart Cities not exceeding 2,100m2 until 30 June 2024. Construction of the home must be completed within a 5 year period from the date of purchase. Notably, once construction is complete the house is available to be sold by the owner to any foreigner regardless of residency or permits.
Registration duties on IRS and RES units have also been amended to be more favourable to foreign investors with rates levied at 5% or USD 70,000 whichever is lower. This is a positive step to create a level playing field with other property schemes and accelerate the sale of the remaining units of these previously dated arrangements.
And lastly, a non-citizen who purchases or acquires an apartment for use as a residence in a building of at least 2 floors above ground (G+2) for USD 375,000 or more will be issued with a residence permit for himself and his dependants, and thereby be exempted from the requirements of a work or occupation permit.
Sources: EDB Mauritius, Statistics Mauritius, pwc
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