Published on and written by Cyril Jarnias
The Seychelles, a paradise archipelago in the Indian Ocean, is undergoing significant urban transformation. Far from the static image of postcards, this small island nation is embarking on a series of ambitious projects aimed at modernizing its infrastructure, diversifying its economy, and improving the quality of life for its residents. These developments are opening new prospects for real estate investors seeking opportunities in an evolving market.
A Bold Vision for the Future of the Seychelles
The Seychellois government has unveiled a national master plan to transform the archipelago’s urban landscape by 2040. This ambitious plan includes the creation of new residential, commercial, and tourist areas, as well as the modernization of existing infrastructure. The goal is to make the Seychelles a premier destination for high-end tourism while enhancing living conditions for local residents.
Among the flagship projects is the creation of a new smart city on the artificial island of Perseverance. This urban extension of Victoria, the capital, will incorporate cutting-edge technologies in energy, waste, and transportation management. The project aims to accommodate up to 20,000 residents in a sustainable and connected urban environment.
Another major project involves the complete renovation of Victoria’s waterfront. This redevelopment includes the construction of new public spaces, pedestrian walkways, and commercial areas, as well as the modernization of the port to accommodate larger cruise ships. The objective is to revitalize the city center and make it an attractive living space for both residents and tourists.
Good to Know:
The Seychelles’ national master plan includes massive investments in urban development, with innovative projects like a smart city and the renovation of Victoria’s waterfront, opening new opportunities for the local real estate market.
Large-Scale Projects Reshaping the Urban Landscape
Perseverance Artificial Island: A Laboratory for the Future City
The Perseverance Island project is undoubtedly one of the most ambitious ever undertaken in the Seychelles. This 60-hectare artificial island, located a few kilometers northeast of Mahé, is designed as a model of sustainable urban development for the archipelago.
The plan includes the construction of 2,000 modern and eco-friendly homes, capable of housing up to 8,000 residents. These residences will be equipped with solar panels and rainwater harvesting systems, reducing their environmental footprint. The project also integrates green spaces, schools, health centers, and commercial areas, creating a truly self-sufficient urban ecosystem.
An innovative aspect of the project is the large-scale integration of smart city technologies. Sensors and intelligent management systems will be deployed to optimize energy consumption, waste management, and traffic flow. This high-tech approach aims to make Perseverance a model sustainable city for the entire Indian Ocean region.
Modernization of Victoria Port: A Boost for the Economy
Victoria Port, the economic heart of the Seychelles, is undergoing a comprehensive modernization program. This project, estimated at over $41 million, aims to increase the port’s capacity and improve its efficiency.
The work includes extending the main quay to accommodate larger vessels, installing new handling equipment, and creating a free trade zone. These improvements are expected to increase container traffic by 50% by 2030, strengthening the Seychelles’ position as a regional logistics hub.
Simultaneously, the project includes the creation of a new cruise terminal capable of hosting next-generation ships. This infrastructure is expected to significantly boost high-end tourism, with positive spillover effects for the entire Seychellois economy.
Good to Know:
The Perseverance artificial island project and the modernization of Victoria Port illustrate the Seychelles’ ambition to become a model of sustainable urban development while enhancing its economic and tourist appeal.
A Real Estate Market in Transformation
These major urban development projects are having a significant impact on the Seychelles’ real estate market. Traditionally dominated by the tourism sector and luxury second homes, the market is experiencing a diversification of supply and an evolution in demand.
Growing Demand for Modern Housing
The emergence of new residential neighborhoods like Perseverance is creating an unprecedented supply of modern and sustainable housing. This evolution meets a growing demand from the Seychellois middle class, as well as expatriates and foreign investors seeking quality real estate.
According to data from the Seychelles National Bureau of Statistics, the average price of new apartments in urban areas increased by 15% between 2020 and 2024, reflecting this heightened demand for modern housing. Projections indicate that this trend should continue, with an estimated additional increase of 20% by 2030.
New Opportunities in Commercial Real Estate
The modernization of Victoria Port and the development of new commercial areas are also opening interesting prospects in the corporate real estate sector. Demand for modern office spaces and well-located commercial premises is rising sharply, particularly from international companies looking to establish a presence in the Seychelles.
The occupancy rate for commercial spaces in Victoria’s city center reached 95% in 2024, compared to 80% in 2020. This trend is prompting developers to launch new office and shopping center projects, especially in the new waterfront area.
Good to Know:
The Seychelles real estate market is experiencing unprecedented diversification, with growing demand for modern housing and quality commercial spaces, offering new opportunities for investors.
Attractive Opportunities for Savvy Investors
Urban development projects in the Seychelles are creating a favorable environment for real estate investment, both for individuals and institutional investors. Here are some of the most promising opportunities:
Residential Real Estate: Attractive Return Potential
Investing in new residential projects, particularly on Perseverance Island, offers interesting return prospects. With sustained rental demand and relatively affordable acquisition prices, investors can expect gross rental yields of around 6 to 8% per year.
Additionally, the scarcity of land in the Seychelles and the country’s growing attractiveness suggest significant property value appreciation in the medium to long term. Local real estate market analysts forecast an average annual price increase of 5 to 7% over the next ten years.
Commercial Real Estate: Riding the Modernization Wave
The development of new commercial areas and the modernization of existing infrastructure create unique opportunities in corporate real estate. Investors can target office, retail, or hotel projects, particularly in booming areas like Victoria’s new waterfront.
Yields in this sector are particularly attractive, with profitability rates reaching 10 to 12% for the best locations. The growing demand for modern commercial spaces, driven by the country’s economic development, ensures good long-term occupancy visibility.
Sustainable Development Projects: A Niche for the Future
The Seychelles emphasizes sustainable development in its urban projects, paving the way for innovative investments. Opportunities in this area include renewable energy projects, high-performance environmental buildings, and waste and water management infrastructure.
These investments, although sometimes more complex, offer interesting return prospects while benefiting from strong support from local authorities. Moreover, they allow investors to position themselves in a growing market: the green economy.
Good to Know:
Real estate investors in the Seychelles can benefit from attractive returns across various market segments, from residential real estate to commercial and sustainable development projects, with strong long-term growth prospects.
Investing in real estate in the Seychelles can be very profitable but requires a good understanding of the local market and its specificities. Here are some essential tips for investors looking to embark on this venture:
Understand the Legal Framework
The Seychellois government has established specific regulations to govern foreign investment in real estate. It is crucial to understand these rules before getting started. For example, land purchases by non-residents are subject to obtaining government approval, called a “sanction.”
Additionally, certain real estate projects benefit from a special status that facilitates foreign investment. This is particularly the case for developments labeled “Integrated Resort Scheme” (IRS), which offer tax benefits and a simplified acquisition process for international investors.
Work with Local Experts
The Seychellois real estate market has its particularities, and it is highly recommended to work with local professionals to successfully carry out an investment project. This includes a lawyer specialized in real estate law, a reputable real estate agent, and, if necessary, a tax advisor.
These experts can guide you through administrative procedures, help identify the best opportunities, and assist in negotiating and finalizing your acquisition.
Consider Additional Costs
When evaluating a real estate investment in the Seychelles, it is important to account for all associated costs. These may include notary fees (approximately 2% of the purchase price), registration duties (5% for non-residents), as well as annual property taxes.
For rental investments, management and maintenance costs should also be budgeted, which may be higher than in other markets due to the Seychelles’ island nature.
Stay Informed About Market Developments
The Seychellois real estate market is evolving rapidly, influenced by major urban development projects and government policies. It is crucial to stay informed about the latest trends, new development projects, and any regulatory changes.
Subscribing to specialized newsletters, following publications from local real estate agencies, and maintaining regular contact with your on-site advisors are all ways to stay updated and seize the best opportunities.
Good to Know:
Investing in real estate in the Seychelles requires a good understanding of the local legal framework, support from on-site experts, careful consideration of additional costs, and constant monitoring of market developments to maximize success chances.
Urban development projects in the Seychelles are opening exciting new prospects for real estate investors. Whether in modern residential properties, booming commercial real estate, or sustainable development projects, opportunities are numerous and promising. However, as with any foreign investment, a cautious and well-informed approach is essential to succeed in this rapidly transforming market.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
