Rs 500 Million Deficit, Luxury Developments Under State’s Scrutiny

The Mauritian government is grappling with an annual revenue loss of several hundred million rupees due to dubious real estate transactions involving luxury developments on geometric plots, a situation that has put these sites firmly on the radar of the Ministry of Housing and Lands.

In response to the alarming growth of wealth among individuals acquiring properties on geometric plots, particularly through upscale residential projects, the ministry has committed to reassessing the acquisition regulations associated with these lands.

The goal is to bolster the legislation to halt questionable practices that have become prevalent in this sector.

Geometric plots are lands that, in principle, remain under state ownership but are currently managed through temporary leases.

Despite this, they have increasingly become attractive sites for large-scale real estate developments, often targeting affluent foreign clients.

Although the law explicitly prohibits foreigners from purchasing properties on these lands, intricate mechanisms have been implemented to circumvent this ban.

Local developers, in partnership with foreign investors, have exploited loopholes in the legislation to sell coastal properties at exorbitant prices.

One particularly striking case highlights this trend: the acquisition of a penthouse in the northern region of the island for Rs 140 million.

Such high-end properties, increasingly reserved for extremely wealthy foreigners, reveal an uncontrolled real estate market.

Transactions of this magnitude often skirt the edge of legality, leaving authorities struggling to intervene effectively.

The regions most affected by this real estate speculation include areas between Trou-aux-Biches and Cap-Malheureux, as well as less accessible and monitored locations in the eastern part of the island.

Currently, approximately twenty projects are under construction, alongside around thirty existing developments, although most are still in the development phase.

The ministry recognized that this situation is significantly undermining state revenue, amounting to hundreds of millions of rupees lost annually.

Properties traded without taxation represent a substantial financial shortfall and deprive the government of the benefits derived from valuable state land.

Given these circumstances, the Ministry of Housing and Lands is determined to address these issues. T

The plan involves reevaluating the conditions for acquiring properties on geometric plots and enhancing regulations to eliminate the dubious practices that allow certain foreign investors to bypass existing rules.

Implementing stricter regulations could involve more transparent control mechanisms, audits of current projects, and potential revisions of ongoing leases. T

he ministry is already investigating several identified cases and is expected to soon propose reforms aimed at protecting the interests of the state, ensuring that properties on these lands remain accessible and beneficial to the Mauritian populace.

Source: Defi Media