How the property market in Mauritius got a legal boost

New legislation has opened the door for overseas investors and made this island off the coast of Africa even more desirable, writes Cheryl Markosky

"Be fearful when others are greedy, and be greedy when others are fearful", said American investor Warren Buffett.

Buffett would surely approve then of new investment initiatives to help buyers on the island of Mauritius, off the south-east coast of Africa in the Indian Ocean.

New legislation allows overseas investors to buy a plot of land to build a detached freehold villa, as long as it’s completed within five years. This offers the benefits of full ownership today, with a deferred investment.

One of the developments with this new plan is is golf and beach resort, Villas Valriche.

Buyers get full title for prime plots around the estate (starting from $350,000), where they can start to build within three years. Villa construction in years four and five will be guaranteed at cost, with only a 15% project management fee.

For those who can’t wait for an off-plan home to be built, the resort’s also selling 12 villas at the same prices as when construction kicked off two years ago – a saving of 17.5% on today’s values.

“We built these villas at our own expense when we were able to negotiate volume construction discounts. Now we’re passing on the substantial savings to buyers,” explains Timo Geldenhuys, sales director of Villas Valriche.

And after listening to prospective purchasers over the last 18 months, the resort’s introduced a new range of compact homes at prices 25-30% below comparable villas on the estate.