Port Louis — Cannes' world property market provides ideal platform for local developers, contruction companies, financial institutions and service providers. The BOI is organising a meeting tomorrow to prepare Mauritian participation in 2008.

More and more foreign investors at MIPIM show interest in the second home market in Mauritius (IRS villas...). Here Denis Boussac in 2007 for Overseas Property estate agency.

"Contrary to road shows, where we travel to meet people, this platform enables them to come to us." In less than two years, the Mauritian participation in the International Fair of Property Professionals (MIPIM), Cannes property trade rendez-vous, has already secured investment for more than one billion US dollars in the local property market. Raju Jaddoo, director of the Board of Investment (BOI) is more confident than ever about future prospects.

After the previous exhibition in last March, with more than 50 stakeholders in the Mauritius stand, BOI is preparing for more. It is organizing a meeting tomorrow on its premises in Cathedral Square Building, Port-Louis, for those who wish to take part in next year's event: property developers, construction companies, financial institutions and service providers in the hospitality and property development sector are expected.

MIPIM 2008 is an important issue as more and more foreign investors are showing interest in the second home market (villas, Integrated Resorts Schemes ) and property investment.

With 25 000 visitors to the exhibition, the spotlight of specialised TV channels and the vicinity of traditional stands like those of Toulouse, Paris or London, Mauritius is bound to enjoy a high profile and maximum exposure.

"Competition is there. Eastern Europe is popular with English people, while Americans covet the Caribbean." Then Seychelles leads the way in the region, as it owns more beaches.

But Mauritius may not suffer from that. Property investment is basically about finding secure placements from renting real estate or infrastructure: "The clients are not being taken in. When they put 5 million USD on the table, it's not just a matter of owning a villa. Leasing and return on investment are more often the real aim."

"For the 2006 tenure, the return on investment for promoters was estimated at about 50 % in terms of contracts and contacts."

According to Raju Jaddoo, it is an economic godsend for Mauritius. "With foreign investors looking for high-quality property, we may, with 2,000 to 3,000 villas, provide the equivalent returns expected from the 2-million tourist target. And this development will be carried out mainly on marginal land."

In fact, many other fields than the classical real-estate sales fall under this prospective market: health tourism (clinics, retirement villages), office space (modern skyscrapers) and knowledge hub development What ultimately decides the investor is how easy, clear, transparent things can be done and, above all, how safe his investment will be. "Since 2006, we have had our hearts set on explaining the legal framework, notably with brochures. We aim at easing the steps, from the commercial to the regulatory phase."

In the sector of marinas, the BOI has worked closely with the British Marinas Federation; and, for Health Tourism, the ministry of Health has been called upon for its guidance. "We have already identified sites for the marinas and how to cluster the small-port amenities", indicates BOI director about marinas.

Redevelopment of old estates is also seen as a promising segment. "We have everything to win from the regeneration of old high potential buildings by foreign investment. When a decrepit infrastructure is rejuvenated while respecting international standards, urban landscape can only benefit."

At the MIPIM, the stress will be on the excellent general background of Mauritius: low political risk, existing contract legislation, bank guarantees, smooth procedures secured by the government "To activate the procedures, a database system between the BOI, the Prime Minister's Office and the relevant authorities has already been set up."

So with all these factors on the Mauritian business card, MIPIM may prove an invaluable platform for those who will participate next year. "For the 2006 tenure, the return on investment for promoters was estimated at about 50 % in terms of contracts and contacts." Moreover, the participation is not financed from public funds. "Last year, participants had to pay half the fees. This time, banks and leasing institutions are playing the game."

A global marketplace

â- MIPIM is a market for international property trade. It takes place each year in March in Cannes, France. In 2004, MIPIM attracted 1,515 participants from m67 countries. In 2005, there were 1,903 exhibiting companies spread over 17,000 sq. ms representing 67 countries, which translated into a 6 % rise in the number of participants and a 12 % rise in the number of end-users and investors at the fair.

MIPIM is designed for senior-level decision makers within the real estate market who want to develop business within their domestic and international markets. It is a global marketplace that gives people the opportunity to connect with key players in the industry, from investors to end-users and local governments to international corporations.

(source: Wikipedia).