Another silver lining from the recession: property in the lush Indian Ocean island of Mauritius has become a lot more affordable, and no longer the preserve of the seriously wealthy. When Mauritius opened its borders to homebuyers for the first time seven years ago, the former French and British colony created a programme of approved property called the Integrated Resort Scheme (IRS), aimed at people with deep pockets looking for villas, and with a minimum threshold of $500,000. However, the downturn has changed a great deal, and most of the IRS developments have never been built, the remainder put on ice as buyers have backed off.
A new scheme introduced a year ago, however, called the Real Estate Scheme (RES) was designed to allow development of smaller landholdings and came with no minimum purchase price. One of the first to take advantage of the new programme is a new development called Emerald Heights, where a one-bed apartment can be purchased for just €275,000, and Francois Marchand, sales director of agent Erna Low Property says: "This is the first development on Mauritius that has a wide range of property, not just high end."
The main developer is Stephen Aldridge, Lord of Wavendon, who says that the IRS scheme was "flawed" because it relied heavily on bank borrowings and led to land and property speculation, while his company Mordaunt Estates has raised its funding through private investors. Emerald Heights offers higher specification and design at a much lower price point, he says
The property is 10km from the coast and promises stunning views of the Indian Ocean and coral reef. Two-bed apartments are €450,000, villas are from €895,000 and owners get to enjoy a private beach club, and membership of the prestigious Mauritius Gymkhana Club with golf course, tennis and squash courts and other facilities. They also earn the right to resident status in Mauritius, which has the benefit of low taxes with a flat rate income tax of 15 per cent. Mauritius may not have totally escaped the clutches of the recession, but the government is confidently plotting the island's future as a leading business hub in the region – with tourist-driven property as a significant second string to its bow.
Alexander Garrett is a freelance property writer who contributes regularly to The Observer and British Airways' Business Life.