An agricultural land is defined as a land area that is either cultivable, under permanent crops, or under permanent pastures. So, when a plot of land is classified as agricultural land and one want to use it for non-agricultural purposes( like for residential purposes), one should apply for a Land conversion permit to the Ministry of Agro Industry.
How to convert an agricultural land into residential land in mauritius?
In order to convert an agricultural land into residential land in Mauritius, an application should be made to the Ministry of Agro Industry and Food Security. Article 6657 Section 65 states that, a plot of agricultural land can be converted to residential after the lapse of five(5) years from the granting of the award, if the land is no longer economically feasible and sound for agricultural purposes or the locality has become urbanized, thus giving the subject lands greater economic value.
GIS- November 2018: New measures will be applicable for the conversion of agricultural land of an extent not exceeding one hectare. Amendment has been done to the 'Sugar Efficiency Act' to that effect. So, owners of agricultural land not exceeding one hectare will no longer have to apply for a Land Conversion Permit, provided they owned the land on 30 September 2005.
The requirements to perform a conversion have known procedural flexibility. The owners of agricultural land will also be exempted from the payment of any morcellement fee, land transfer tax, capital gains tax and transcription fee. However, the change of use from agricultural to non agricultural use only applies and can take place only if the land in question is within limits of permitted development and is not within an irrigation zone. This condition will ensure that the change of use does not conflict with irrigation projects being undertaken by the government. The cut-off date (30 September 2005) has been implemented to avoid undue land speculation.
Is it wise to invest in Agricultural land?
Tangible assets like agricultural land are fascinating, especially after the outbreak of COVID 19. People looking for safe havens are more attracted to agricultural land market which is considered as the new investment El Dorado.
It is a fact that the population is increasing day by day. This demographic increase directly impacts on our food needs which are climbing at full speed. Therefore, agricultural land , given its scarity, automatically increases on the market value. It is recognized among real estate professionals that investment in land is a safe bet. Apart from savings and the stock market, mauritians are more and more inclined to invest in properties. Moreover, agricultural land remains a smart investment. The land keeps increasing in value over time. As it is, its value never depreciates. In addition, if the agricultural land is strategically situated , now it can easily be converted into a residential land where you can enjoy the luxury of owning a large plot at an affordable price! So keep in touch with Fatismet Properties if you are searching for agricultural land.
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