Mauritius: Update On Property Development In Mauritius

Last Updated: 2 December 2016
Article by Khemila Narraidoo and Marc Hein


Property development has reached a tipping point in Mauritius. Since December 2014, we have seen the Government's introduction of the Property Development Scheme (PDS), as the successor to the previous schemes, namely, the Integrated Resort Scheme (IRS) and Residential Estate Scheme (RES).

This has led to a situation where the previous IRS and RES continue to benefit from the advantages granted to them under the old schemes. The Investment Promotion Act 2000 (IPA 2000) was amended to cater for the new PDS which was set up after consultation between the Government and various stakeholders at the beginning of 2015. Under the powers conferred by the IPA 2000 to the Minister of Finance and Economic Development, the latter enacted the Investment Promotion (Property Development) Scheme Regulations 2015 which provide the framework for the development of the new PDS.


The figures show that about 1,500 residential units were sold by January 2015 through the previous IRS and RES schemes. As a reminder, the RES was introduced after the success of the IRS when it was felt that smaller landowners should also benefit from property development and bring in foreign direct investment (FDI) to the island. Numerous criticisms were made of those two schemes, however, the main one being that they were creating ghettos for rich foreigners who were living in their own communities and isolating themselves from Mauritian life. New solutions, therefore, had to be found.

After the global financial crisis and the slowdown of the property market, together with the desire to better integrate those foreigners who were investing in real estate, it was felt that a new scheme was needed and so the PDS was born in May 2015. The Investment Promotion (PDS) Regulations 2015 are designed to govern the new arrangements.

The objects and legal basis of the PDS

The objects of the PDS are to promote inclusive development and provide for residential, employment and leisure opportunities for Mauritians, members of the Mauritian Diaspora and foreigners. The PDS also aims to ensure that the development accrues to the neighbouring communities and to small individual entrepreneurs. The Regulations define who can be a PDS developer, what a PDS certificate is and the obligations and responsibilities of the PDS company. It provides the legal framework for the implementation of the PDS project and the administration for the PDS Social Fund. Finally, the Regulations govern the process for the acquisition and resale of property, both residential and non-residential.

The idea of the PDS is to develop luxury residences on areas ranging from one to 50 arpents and restricted to freehold land. Each project is to develop at least six high-standing residential properties and also provide public and green spaces for better social relationship. The PDS needs to provide leisure and commercial facilities as well as daily management services to look after these after completion.

Finally, social contributions are required whereby the PDS company will provide 200,000 Mauritian rupees per residential property built. Registration duty has been simplified and is now charged at a flat rate of 5 per cent.

The PDS guidelines

The PDS Guidelines have been published by the Board of Investment (BOI) and are available on its website at The Guidelines cover the whole framework starting with the application for a PDS up to the issue of the PDS Certificate. They provide for the type and extent of residential property to be acquired and the procedure required to acquire the PDS Certificate. Although it is a 27-page technical document, nonetheless, the keen promoter or buyer will certainly find his way whilst reading through it. It also covers the duties and taxes which are payable and the steps to be followed when the contract is governed by provisions of the VEFA (Vente en l'Etat Futur d'Achevement) and the GFA (Garantie Financière d'Achèvement).

It is clear that many of the previous procedures relating to IRS and RES have been streamlined and promoters are largely supportive of the new rules. However, an outstanding headache for the PDS promoter, until recently, was the obligation to sell 25 per cent of a development to a Mauritian resident or member of the Mauritian Diaspora. Whilst the original idea was probably laudable in its aim to mix both Mauritian and foreign buyers, in practice, it has proved unworkable. No one may start a project if he has not secured the sale of 25 per cent of properties on offer to Mauritians and the obvious question was why would Mauritians pay more to buy within the PDS Scheme when they could buy land for development anywhere in Mauritius. Representations were made to the Government and the BOI to amend the law or to make these provisions more flexible.

Legislative updates

As the property market in Mauritius has matured, the Government has facilitated access to the PDS in its 2016 Budget by removing the stringent requirement on promoters to sell at least 25 per cent of residential units to Mauritian buyers. Likewise, the maximum permissible land size for a villa has been reviewed from half of an acre, which is approximately 2,110 sq. m., to 1.25 acres which is approximately 5,276 sq. m. The maximum limit of 50 acres has also been abolished.

To date, 19 PDS project promoters have received their Letter of Approval and two of these have been issued with their PDS certificates. Recent developments in the property sector in Mauritius have helped to establish more reliable structures for investors. The improved legislative framework shows a commitment from the Government to capitalise on the PDS scheme and to cater for a wide range of buyers with different construction projects. This greatly aids Mauritius in its goal to secure a place on the global property market.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions