Shift in Rental Demand
Its been an exciting and interesting 8 months at MW Property Group, boy does time fly when you are busy!
Since we opened back in January 2012 we have been keeping track of the rental market here in the North of Mauritius (from Balaclava to St Antoine), as there isn’t’t a publication available where you can easily get this information we are happy to share some interesting points we found…
– Steady decline in demand in the Rs30 000 – Rs60 000 (per month), usually the bulk of the expatriate rentals in the North of Mauritius have been in this price range.
– Average decrease in prices between Rs30 000 – Rs60 000 by 12%. (House that used to rent for Rs50 000 now only achieving Rs44 000 per month)
– Increase in demand for properties above Rs75 000 (per month), especially applies to properties in secure estates/communities.
– Homes priced between Rs75 000 and Rs100 000, prices have remained stable.
– Homes priced Rs100 000 upwards decreased by around 8%.
– Marked increase in demand from Expatriates already based in Mauritius wanting to downscale to save on expenses, in many of these cases they are taking advantage of new properties that have dropped to within their preferred price range as per the information above.
Whats does this all mean? If you are a landlord it would be worth noting:
– Don’t take your tenant for granted! They may be searching for a new property at a decreased price as you read this. If you have a happy tenant who is paying a fair rate then this is unlikely, keeping good communication is key!
– Problems?…Act Immediately: Problems do NOT go away! And if you leave them they grow bigger! The sooner you attend to a problem, the better. Especially maintenance problems! Your tenant will feel appreciated and will be less likely to move.
– Obtain higher rentals – Upgrade eg. pool, new furniture or security. One way to retain your tenant without decreasing your price is to speak to your tenant as find out what would create a better living environment for them, so often it is just a small item like an air conditioning unit or a new dishwasher that makes a difference. If it is a “big ticket” item, try build it into the rent or ask the tenant to pay half. Happier tenant, happier Landlord, more rent, better investment!
If you are a tenant it may be worth noting:
– Properties that you looked at a year ago have decreased in price (in general). Properties that may have been out of your price range could very well be affordable now, do your homework, you may be surprised.
– If your contract is coming to an end maybe you can negotiate with your landlord to decrease as per the above information?
– Maybe instead of decreasing the rent you could have the landlord upgrade some things in the home to make you more comfortable.
– Another idea is to get more services included in the rental, such as gardening, maid services etc.
A very BIG thank you for your support over the last 8 months, whether you are renting, buying or selling we hope we can be of service again in the near future.