What is VEFA? (Buying Off-Plan in Mauritius)
If you're considering investing in Mauritius real estate, you've likely come across the term VEFA. It stands for “Vente en État Futur d’Achèvement”, which translates to “Sale in a Future State of Completion.” In simple terms, VEFA is what we call buying off-plan.
It’s a popular and secure way for both Mauritians and foreigners to purchase property on the island—especially in new developments.
🔑 How Does VEFA Work?
Under a VEFA contract, the buyer agrees to purchase a property before it's fully built (or sometimes before construction has even started). In return, the developer (promoter) commits to delivering the completed property according to the plans, specifications, and timelines agreed upon in the contract.
The buyer pays in stages based on the progress of construction—offering flexibility and a clear payment roadmap.
📄 Legal Protection for Buyers
One of the strongest advantages of VEFA in Mauritius is the high level of legal protection for buyers. The process is regulated by law and requires:
- A contract signed before a notary, with detailed project descriptions, delivery deadlines, and payment terms.
- A GFA (Garantie Financière d’Achèvement)—a financial completion guarantee issued by a bank or insurance company. This ensures the property will be completed even if the developer fails.
🌴 Why Buyers Choose VEFA in Mauritius
- Lower Entry Price: You often secure a better price by buying early in a project.
- Customization: Choose finishes, layouts, or upgrades during the build process.
- Modern Design: New builds meet the latest standards in architecture, energy efficiency, and smart tech.
- Foreign Buyer Friendly: VEFA properties are often part of schemes that are open to non-citizens (like PDS, RES, or IRS projects).
🧑💼 Frequently Asked Questions (FAQ)
Q: What does VEFA stand for?
A: VEFA means “Vente en État Futur d’Achèvement,” or “sale in future state of completion.” It's the legal framework for buying off-plan property in Mauritius.
Q: Is buying off-plan safe in Mauritius?
A: Yes. VEFA is a legally protected system, and your investment is backed by a bank guarantee of completion (GFA). Notaries and developers are held to strict standards.
Q: How are payments made under a VEFA contract?
A: Payments are staggered according to the progress of construction, typically with defined milestones (e.g. foundation, walls, roofing, completion).
Q: Can foreigners buy VEFA properties in Mauritius?
A: Absolutely—most VEFA projects are in government-approved schemes like PDS (Property Development Scheme), which are open to foreign buyers and often come with residency eligibility.
Q: What happens if the developer doesn’t finish the property?
A: That’s where the GFA (completion guarantee) protects you. A bank or insurance provider guarantees the completion of the property, even if the developer defaults.
Q: Why should I consider VEFA over an existing property?
A: VEFA allows for customization, lower upfront pricing, and buying into brand-new, modern developments with excellent resale and rental potential.
