Gareth Land of 2Futures, a property developer in Mauritius, notes that an increasing number of South Africans are seeing the benefits of offshore property investment.
Whether it's buying a permanent home for emigration, securing a future residential villa, investing in a safe opportunity, or using property as part of a business venture, investing in real estate is a crucial strategy for building an offshore wealth portfolio and acquiring a long-lasting asset, he says.
According to the 2023 Migration Report Profile for South Africa by Stats SA, many South Africans are seeking new opportunities abroad.
The data indicates that around 413,000 South Africans have emigrated since the year 2000, primarily to the United Kingdom, followed by Australia, the United States, New Zealand, and Canada.
In recent years, a new destination for offshore property investment has gained attention, particularly within the real estate sector. Companies like 2Futures have observed a growing trend of South Africans purchasing properties in Mauritius.
The latest Gross Direct Investment (GDI) report from the Bank of Mauritius showed that South Africans were second only to the French in overall GDI into Mauritius. In 2023, South Africa was also the second largest source of real estate foreign direct investment, contributing MUR 3.84 billion.
Why Mauritius? Buyer profiles provide some insights.
South Africans Investing in Mauritius
Land says that clients vary in their property needs and investment reasons, but a common thread is that many are advanced in their careers, typically over 40, and capable of hybrid work, whether self-employed or part of a larger organisation.
The appeal of Mauritius includes social and political stability, a beautiful island environment, and a high standard of living. Unlike other popular investment destinations like Spain, Cyprus, or Malta, Mauritius is just a short flight from South Africa, making it convenient for work or family visits.
For entrepreneurial clients, the financial benefits are a significant draw. Mauritius offers no council tax, property tax, inheritance tax, or capital gains tax, along with an estimated 5-7% return on rental investments, making property ownership and rentals highly attractive.
Securing residency permits has become easier, Land points out. According to the Economic Development Board of Mauritius (EDB): A non-citizen investing in a luxurious residential property in a project under the regulated schemes, for a price of not less than USD 375,000, is eligible to get a residence permit for self and dependents.
The residence permit exempts the main applicant from a work permit/ occupation permit to work or engage in gainful activities in Mauritius.
Future Residents and Entrepreneurs in Mauritius
Mauritius aims to become a regional hub for tech, fintech, and healthcare, says Land. The World Bank’s Global Innovation Index in January highlighted Mauritius as Africa’s most innovative country and the continent’s most favourable business climate.
The country’s reputation as an International Financial Centre facilitates cross-border investments in emerging economies. This push to diversify Mauritius’ capabilities attracts higher-income investors purchasing luxury accommodations and securing residency.
Land says that the group's experience shows that offshore real estate investment in Mauritius is not limited to the highest income brackets. There is growing demand for studio and 1-bedroom apartments, driven by investors focusing on rental returns and purchasing multiple smaller units within their budget.
Regions like Black River and Grand Baie attract both commercial and residential investors at all development phases, including properties connected to nearby hotels that offer hotel services and access to facilities.
Regardless of the type of property, it's clear why many investors, including the increasing number from South Africa, see Mauritius as a growth destination. It is closely connected to Africa, hosts rapidly growing business sectors, and is rich in natural beauty, Land says.
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