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Purchase under VEFA in Mauritius: deciphering the benefits and risks

Nautica villa is an off plan eco villas project
Nautica Villas

VEFA (Vente en l'Etat Futur d'Achèvement ) is a crucial term in the real estate world, defining a purchasing process in which the property is acquired while construction has not yet begun or been completed. Also known as off-plan purchase, VEFA has gained popularity in recent years. As a specialist estate agent in Mauritius, I'd like to break down this method of property acquisition for you and examine in detail its implications for investors on our island.

In Mauritius, the VEFA purchase has established itself as an attractive alternative to purchasing an existing property. Whether it's a house, an apartment a penthouse or a villa for sale in Mauritius, this method of purchase offers several advantages but also risks that deserve to be taken into consideration.

First, let's look at the advantages of VEFA investment

  1. New property: Investing in a VEFA means you'll be the first owner. Maintenance costs are often lower with new construction than with pre-owned property.

  2. Modification of proposed plans: Buying off-plan also has the advantage, compared to buying a resale or finished property, of being able to request alterations to adapt the home to your needs and desires.

  3. Energy savings: New buildings are generally designed to meet high energy standards, which can translate into savings on your energy bills.

  4. Builder's warranties: VEFA offers warranties covering construction defects and ensuring their repair.

  5. Attractive financing: It is usually possible to obtain property financing on favourable terms for VEFA purchases with a local bank, subject to certain conditions. It is possible to finance part of your purchase with a local bank in Mauritius ( a maximum of 70% of the price of the property excluding costs and furnishings).

  6. Potential profitability: The real estate market in Mauritius is very dynamic and currently enjoying strong growth, so the price appreciation of your property between purchase off-plan and delivery can increase your return on investment.

Now let's look at the possible disadvantages of VEFA investment

The VEFA investment is not risk-free. Construction delays and quality problems can occur, so to limit the risks it is essential if you are unfamiliar with the market to call on the expertise and assistance of a competent real estate agency in Mauritius, to recommend the most reputable developers and the most solid real estate projects.

It's also very important to understand the legal aspects of the acquisition and its various stages.

The most important thing to check before buying off-plan is that the project offers a financial guarantee of completion. This is compulsory for all property purchases accessible to non-Mauritians.

It must be arranged by the developer, and there are two recognized types in Mauritius:

  1. The extrinsic GFA is set up by the developer with a local financial institution (bank, insurance company) that undertakes to finance the completion of the work in the event of default by the developer. This guarantee is compulsory and must be in place before the sale contract is signed. It is normally put in place when the developer has sold 70% of the value of the entire project. In the event of the developer's default (bankruptcy, receivership, etc.), the financial institution that granted the GFA will finance the remaining work to ensure that the real estate project is completed as originally planned.

  2. Intrinsic GFA: Based on the developer's funds. It is less common and generally used for small-scale projects. In Mauritius, it is becoming increasingly popular, as it is less costly for the developer.

The GFA is therefore an important security for the buyer in a VEFA purchase. It ensures that the project will be completed even if problems arise with the developer.

Whether you are planning to buy a house in Mauritius or a villa, or are interested in apartments for sale in Mauritius for rental investment, don't hesitate to contact me. There are a number of options open to you, and I invite you to visit my New Projects page, to discover the most reputable and high-potential projects.

VEFA investment in Mauritius can be an attractive option, but it's essential to understand the potential risks. Working with a trusted real estate agency in Mauritius, like mine, will enable you to make the best choice for your needs and financial goals. Contact me today to find out more about real estate sales in Mauritius and how we can help you realize your real estate dream.

To learn more about these two projects, please contact me by email at or by WhatsApp: +23054740302.

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