Buying a property that does not exist yet: that is the principle of an off-plan purchase (known locally as VEFA, from the French "vente en l'état futur d'achèvement"), and it is how most new developments in Mauritius are sold. Good news for buyers: the Mauritian mechanism is directly inspired by French law, with a notarised deed, payments staged with construction progress and a financial completion guarantee (GFA). Here is how it works, and what to check before signing.
How an off-plan purchase unfolds
- The reservation: you sign a preliminary reservation contract and pay a deposit, generally held in escrow by the notary. It fixes the unit, the price and the provisional timeline.
- The notarised deed of sale: as with any purchase in Mauritius, a notary handles the sale. This is when the 10% registration duty is due.
- The payment calls: you pay at the pace of the construction (foundations, structural work, completion...), typically 20 to 30% at the deed then in stages, the balance at delivery. Your money follows actual progress, never the other way round.
- The delivery: handover of the keys, recording of any reserved defects, and the developer remains bound by construction warranties.
The completion guarantee, your safety net
The financial completion guarantee is the element that changes everything: a bank commits to funding the completion of the development if the developer were to fail. It is required in approved schemes sold off-plan. Our rule is simple and non-negotiable: no guarantee, no signature. It is the first of the traps listed in our article on investing in Mauritius from €150,000, and by far the most important.
The advantages of buying new off-plan
- No agency fees: our remuneration is covered by the developer. On a €300,000 property, that is €6,900 saved compared with a resale, with the full detail in our article on purchase costs.
- The launch price: the first phases of a development generally sell for less than the last ones, and than the market at delivery.
- Staged payments: your cash follows the construction over 18 to 30 months, which also makes financing easier.
- A property built to current standards, with finishes you can customise depending on the construction stage, and better-controlled charges than an older property.
- In an approved scheme (PDS or Smart City) from USD 375,000, the permanent residence permit is waiting at delivery.
The traps to avoid
- No completion guarantee: we cannot repeat it enough.
- A developer without references: ask for their past deliveries, go and see them, talk to residents. We only list developers whose reliability we know in our new developments.
- A too-good timeline: construction runs late, it is almost a law of nature. Check the late-delivery penalties in the contract.
- Underestimated charges: in a residence with pool, security and gardens, demand the provisional charges budget before signing.
- Buying on a single 3D render: perspectives sell dreams. Study the dimensioned plans, the orientation, the overlooking and the site's surroundings, today and as they will be tomorrow.
Frequently asked questions
Can I resell before delivery?
Assigning an off-plan contract before delivery is possible under the conditions set out in the contract and with the developer's agreement. It is a point to check before signing if your plans might change.
What happens if the developer goes bankrupt?
That is precisely the role of the completion guarantee: the guaranteeing bank funds the completion of the development and you take delivery, even if the developer disappears. Hence its non-negotiable status.
What costs for an off-plan purchase?
10% registration duty, notary on the legal scale, but no agency fees: allow 12% of the price in total, versus 14 to 15% on a resale. The details are in our article on purchase costs in Mauritius.
Want to see what is being built right now? Browse our new developments with their real-time unit price lists, or tell us about your project.
