Why HNWIs move to Mauritius
Category Property Developments
Mauritius continues to attract High Net Worth Individuals (HNWIs) because of its low crime rates, good schools and plentiful business opportunities, which has a knock-on effect for the property sector. Its successful containment of the coronavirus outbreak bodes well for its economic recovery in the future.
These are some of the findings published by wealth intelligence firm New World Wealth in its third annual Global Wealth Migration Review released late 2020. The report is sponsored by AfrAsia Bank. It examines worldwide wealth migration trends until June 2020 and looks at how they could be impacted by the coronavirus pandemic.
Mauritius economic recovery
Mauritius is one of the countries that has "contained the outbreak relatively well, which should positively impact on their ability to recover economically from the crisis", says Amoils. "Countries that appear to have handled it best so far include: New Zealand, South Korea, Australia, Malta and Mauritius. There are a relatively low number of coronavirus-related fatalities in these countries."
Even HNWIs often see a change in fortunes in times of crisis and spending habits are expected to change in 2021.
Here's what could attract investors in residential property to Mauritius:
- Many HNWIs may choose to work remotely.
- Luxury residential estates could become more popular, as HNWIs seek more open space.
- HNWIs may choose to buy more of their luxury items online or via appointment.
- Indoor gyms may become less popular as people gravitate towards outdoor exercise.
- Outdoor hobbies/sports that allow for easy social distancing (such as golf, hiking, cycling and bird-watching) may become more popular.
Ease of doing business
"Mauritius has attracted a steady number of HNWIs over the past decade, perhaps due to the ease of doing business in the country. Notably, Mauritius ranked first in Africa and 13th worldwide in the World Bank's 2020 Doing Business Report," says Andrew Amoils of New World Wealth. "Mauritius is also known for its safety and fast-growing financial services sector. The country is now home to around 4,000 HNWIs (as at June 2020), compared to 2,500 HNWIs a decade ago."
Mauritius ticks a lot of boxes when it comes to motivation to move. According to the report, issues that prompt HNWIs to leave their home country for another include:
- Safety - especially woman and child safety
- Lifestyle - climate, pollution, space, nature and scenery
- Financial concerns
- Schooling and education opportunities for their children
- Work and business opportunities
- Taxes
- Healthcare system
- Standard of living
- Oppressive government.
Australia, the United States, Switzerland, Canada, Singapore, Israel, New Zealand, the United Arab Emirates, Portugal and Greece gained the most HNWIs in 2019. However, in the year preceding the publication of the report, Monaco, Malta, Mauritius, the Caribbean islands and Bermuda welcomed 100 or more HNWIs to their countries.
Author: Rinie Boshoff