DE­VEL­OP­ING AN IRS

Finweek English Edition - - INSIGHT -

Mau­ri­tius has never seen an IRS or RES de­vel­op­ment that has failed or de­faulted. There were a few that were pro­posed but never got off the ground. The rea­son for this, as Hud­son ex­plains, is that it takes a lot of fi­nan­cial mus­cle and fair amount of re­silience, es­pe­cially dur­ing tough eco­nomic times, to launch an IRS project – those that have been suc­cess­fully com­pleted were launched by big cor­po­rates.

So, in other words, there aren’t fears that the mar­ket will be­come overde­vel­oped with IRS de­vel­op­ments and there­fore the mar­ket f looded. Espi­tal­ier-Noël ex­pands: “It will

be dif­fi­cult to have more IRS de­vel­op­ments as buy­ers want to be by the sea and al­most by def­i­ni­tion, the whole land around Mau­ri­tius is state land and not pri­vate land – al­most every­where with a few ex­cep­tions. It will be a chal­lenge for de­vel­op­ers to find a property of size that is free­hold.”

He says that that this will put a limit on de­vel­op­ment. “And if you de­velop an IRS in­land – 2km from the sea – chances of sell­ing are low.”

Ac­cord­ing to Hud­son, the cost to de­velop vil­las in an IRS is sig­nif­i­cant be­cause of ev­ery­thing that goes with it. “The in­fras­truc­tural and added-value costs to build ho­tels, beach clubs and golf cour­ses are a sig­nif­i­cant in­vest­ment. To f lood the mar­ket with that type of prod­uct is un­likely.”

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