PDS, IRS, RES, R+2, Smart City: Buying New in Mauritius

Purchasing a new property in Mauritius involves choosing between several specific legal frameworks: PDS, IRS, RES, R+2, and Smart City. Each caters to different buyer profiles and objectives. This guide details these schemes to help investors, expatriates, and foreign buyers understand the available options and make an informed choice.

What are the main new purchase frameworks in Mauritius?

The Mauritian market offers five major schemes for non-residents to purchase a new property:

• PDS (Property Development Scheme)
• IRS (Integrated Resort Scheme)
• RES (Real Estate Scheme)
• R+2 (apartments in buildings with more than two floors)
• Smart City Scheme

These frameworks allow foreigners to acquire a new property under certain conditions, with varied uses and advantages depending on the project.

Definitions and differences between PDS, IRS, RES, R+2, and Smart City

PDS (Property Development Scheme)

The PDS is currently the main framework for foreigners buying new properties. It consolidates and replaces the former IRS and RES. PDS projects are subject to specific criteria: minimum land size, quality services, integrated services, and openness to both local and foreign populations. The properties offered are often high-end villas or apartments in secure residences.

IRS (Integrated Resort Scheme)

The IRS was the first scheme allowing foreigners to buy luxury villas in Mauritius, typically on large estates with golf courses, spas, and services. Today, the IRS offer is limited to existing projects, as this scheme is no longer issued for new developments.

RES (Real Estate Scheme)

The RES targeted smaller projects than the IRS, with fewer area constraints and a more varied range of properties (villas, apartments). Like the IRS, it is no longer allocated for new projects, but resale properties are still available.

R+2 (apartments in buildings)

The R+2 allows a foreigner to purchase a new apartment in a building with at least two floors, under conditions. This scheme mainly targets investors or expatriates wishing to acquire a property in co-ownership, often for rental use or as a pied-à-terre.

Smart City Scheme

The Smart City Scheme aims to create genuine mixed urban districts, integrating housing, shops, offices, and green spaces. Foreigners can purchase new properties (apartments, villas) in an environment designed for the long term, with a sustainable and connected dimension.

What uses and buyer profiles for each scheme?

• PDS: suitable for purchasing high-end villas or apartments, for primary residence, secondary residence, or rental investment. Profile: international investor, expatriate family, retiree seeking comfort and security.
• IRS: targets buyers of prestigious villas, often for secondary or heritage residence. Profile: high-end investor, golf enthusiast, demanding international clientele.
• RES: offers varied properties, sometimes more accessible, for residence or investment. Profile: investor seeking a human-scale project, expatriate wanting a property in a small residence.
• R+2: ideal for purchasing an apartment, often in urban or seaside areas. Profile: rental investor, young professional, expatriate seeking a pied-à-terre.
• Smart City: targets buyers wishing to live or invest in an integrated urban environment. Profile: entrepreneur, active family, investor interested in mixed-use areas.

Concrete advantages of buying new under each scheme

• PDS: access to recent properties, high-end services, secure environment, integrated services (concierge, leisure), possibility to apply for a residence permit under conditions.
• IRS: exclusive living environment, access to prestigious infrastructures, security, professional management, potential for heritage value appreciation.
• RES: diversity of properties, human-scale projects, sometimes more affordable, access to residence under conditions.
• R+2: often lower entry ticket, flexibility of use (rental, residence), urban or seaside location, shared maintenance.
• Smart City: modern living environment, proximity to services, facilitated mobility, long-term growth potential.

Limits, precautions, and mistakes to avoid when buying new in Mauritius

• Check the project’s eligibility for the chosen scheme: only certain projects are open to foreigners.
• Consider the conditions for obtaining a residence permit, which vary according to the investment amount and the scheme.
• Analyse the developer’s quality and the project’s solidity, especially for new programmes under construction.
• Research the applicable taxation for your profile and the property’s use (residence, rental, resale).
• Anticipate co-ownership charges, management fees, and resale modalities, which differ according to the scheme.
• For IRS and RES properties, clearly distinguish between new purchase and resale, as conditions may differ.

How to choose the right scheme for your property project in Mauritius?

The choice depends on several criteria:

• Your objective: primary residence, secondary residence, rental investment, heritage diversification.
• The type of property sought: villa, apartment, serviced residence, urban district.
• Your budget and investment horizon.
• Your desire to obtain a residence permit or not.
• The desired location: seaside, urban centre, golf, business district.

Professional guidance is recommended to secure your purchase and optimise your strategy. For more on investing in Mauritius, consult our dedicated guide to buying and investing in Mauritius.

Concrete cases: which scheme for which project?

• You want a villa with services in a secure residence: opt for a recent PDS project.
• You are looking for an apartment for rental investment in an urban area: the R+2 scheme may be suitable.
• You aim for a heritage purchase in a developing district: explore Smart City offers.
• You are a golf enthusiast and seek exclusive services: an existing IRS property may meet your expectations.

Specificities of buying new in Mauritius for foreigners

In Mauritius, the acquisition of a new property by a non-resident is strictly regulated. Projects open to foreigners are validated by the authorities, and the purchase is made transparently, with a local notary. The procedures include verifying the project’s compliance, signing a reservation contract, and then the deed of sale. It is recommended to be accompanied by a professional familiar with local specifics.

Conclusion

Choosing between PDS, IRS, RES, R+2, or Smart City to buy a new property in Mauritius depends on your project, profile, and expectations. Each scheme presents specific advantages, limits, and eligibility conditions. Tailored support will help secure your investment and fully enjoy the benefits of new real estate in Mauritius.