Market Trends | Budget 2023, Slowly but surely

Budget 2023: Slowly but surely
The recently announced 2023 budget includes a number of measures specifically targeting the real estate sector.

While most of them are extensions of existing measures, others aim to broaden access to property for foreigners or extend support to Mauritian families.

Measures specifically targeting foreigners:

The conditions for obtaining a residence permit under the retired status are relaxed, with the minimum age reduced to 50 years and the requirement of acquiring a property in a PDS project related to elderly residences starting from USD 200,000.

It will be possible for a foreigner holding a residence permit or a work permit as the main applicant to acquire one (and only one) residential property outside of the Smart City and PDS programs, provided that the price exceeds USD 500,000, the property is not located on state land, and the individual pays an additional registration duty of 10% of the acquisition value.

A foreigner can access the "Smart City" development programs and obtain a residence permit for themselves and their family for the acquisition of a property valued at over USD 375,000.
The possibility for foreigners holding a residence permit or a work permit to purchase a serviced plot of land of less than 2100 m2 in Smart City or PDS projects is extended until June 30, 2026.
The application fees for property purchases are standardized at Rs 25,000 regardless of the acquisition regime (Apartment G+2, IRS, RES, PDS, IHS, and Smart City).

Measures that will concern Mauritians:

The homeownership scheme is extended until June 30, 2024. It includes a 5% reimbursement of the acquisition cost up to Rs 500,000, exemption from registration duty for first-time acquisitions, and a 5% reimbursement of housing loans up to Rs 500,000.

To mitigate the impact of rising prices of raw materials and construction materials, the subsidy program for their purchase is expanded. The assistance ranging from Rs 100,000 to Rs 130,000 is now accessible for households earning less than Rs 15,000 (previously Rs 10,000). Households earning between Rs 15,001 and Rs 20,000 can receive assistance of up to Rs 100,000. A new subsidy of Rs 75,000 will be granted to households earning between Rs 20,001 and Rs 30,000.

As part of a socio-economic project, rents for properties located on state-owned land can be reduced, and payment facilities can be granted to tenants on a case-by-case basis.
Commitments have been made in favor of NHCD housing estates, starting with the construction of 8,000 new homes. Fire escape stairs will be built in certain regions. Waterproofing and sanitation works will be carried out in existing units, and ex-CHA houses will be decontaminated and rehabilitated.
The Transit-Oriented Scheme, which involves the development and planning of vibrant, pedestrian-friendly, and versatile areas within a radius of 500 meters around metro stations, will be extended to 1 km.

Lastly, in the context of large-scale development projects, a cost-sharing program for the extension of the power grid infrastructure will be introduced.