What's the trend in IRS/RES properties?

HKT

Member

Member since 16 May 2014

Phuket Island

HKT

16 May 2014 05:04:04

HKT

16 May 2014 05:04:04

Phuket Island

I'm trying to get an idea of the IRS/RES property market. I had a look at a few developments and it looks like they do quite well in sales, with many projects at least showing all or most of the units are sold.

Over the next couple of years, is there a plan to allow more of these types of developments, or does the government cap the number of units allowed to be built and sold?

Does anyone know how these units are doing in terms of resale values as compared to off plan or original price?

After browsing a few local real estate sites, it seems there's quite a disparity in the price of similarly built houses/apartments between IRS/RES and those that aren't under this designation.

Insurance questions---

During cyclones, how much of a storm surge is there and what happens to all the beach front properties? Is there any location on the island that has less storm surge than others? If you're renting, does the homeowners insurance cover flood/storm damage, or would a renter need to have renters insurance?

What is a general annual percentage of the cost of having homeowners insurance? For example, where I am now homeowners insurance costs about 1% pa of the insured value.

Kaviraj G

16 May 2014 16:16:31

Kaviraj G

16 May 2014 16:16:31

Hi HKT,

There are many IRS/RES projects under construction and some others planned but of course, this real estate scheme will not go on forever for the simple reason that Mauritius is a tiny island, only 70 by 50 km.

Upon reaching this stage, RES projects which have been traditionally the construction of individual villas mostly along coastal regions will be remodeled into luxury apartment units to save space.

Yes, there are houses and apartments less expensive than IRS/RES units even if they almost of the same type and design quality. However, this is because foreigners cannot buy properties in Mauritius other than those labelled under IRS or RES schemes and apartments under some conditions like the minimum monthly income, etc.
And based on legal guidelines regarding the implementation of IRS/RES projects, the minimum cost for an IRS is set at $500,000 and for an RES a little less thus creating this sense of inequality in the price tag.

As for resale values and insurance policies, I would suggest you contact a real estate company involved in IRS/REs projects for some precise information.

HKT

Member

Member since 16 May 2014

Phuket Island

HKT

17 May 2014 05:51:52

HKT

17 May 2014 05:51:52

Phuket Island

Thanks. I am aware of the 500K needed for the property, I was hoping to get a feel for the market as to whether there will be an oversupply at some point, or if the gov't will end the scheme thus ensuring there will not be overbuilding.

Having been in real estate in a prior phase, I am well aware that if speaking to an agent the picture will always be rosy, as it's their livelihood to sell property.

Speaking of agents, is there a specific training course and exam needed to become an agent, or can someone simply hang their shingle and call themselves an agent? Where I currently reside, anyone can be an agent, and where I came from one had to sit for an exam and pass to become a licensed agent.