Morocco Property
Why Invest in Moroccan Property
Morocco has been in the list of top 10 countries to look out for in terms of property investment in British property investment magazines for the past couple of years. The truth is that the property boom started in Morocco in 2000. Moroccan property prices have been rising over the past 7 years, and with the country undergoing major infrastructure developments, there are no signs of slowing down. Unlike developed economies where property booms tend to arise as a result of low interest rates and speculations, property booms in developing countries such as Morocco tend to be much more stable due to certain economic factors such as the rate of growth of the economy. As far as the Moroccan property market is concerned, in addition to the fact that it is currently experiencing major developments and the emergence of a middle-class, the demand for holiday homes in Morocco has played a vital role in the growth of the Moroccan property market.
Morocco Property Prices
Morocco property prices are about 30%- 40% cheaper than property in Spain or Dubai. With many developments still selling off-plan, Morocco property prices are expected to increase by 20% annually in many parts of the country. Add to this the popularity of Morocco as a holiday destination, with rental returns at an average of 10%-12% annually.
Morocco Villas for Sale
There are numerous developments through out Morocco offering villas for sale. The majority of these villas for sale in Morocco are still off-plan but there are many villa developments that are on the verge of being completed within the coming months. Buying a villa in Morocco is a dream come true for anyone looking for an exotic location so close to Europe. Villas for sale in Morocco range from £100,000 to millions of pounds depending on the location, the specifications and size. Villas for sale in Morocco tend to be on the outer edges of the city, in quiet middle class neighbourhoods. In terms of style there are what are typical Moroccan style villas and European style villas for sale in Morocco.
Morocco Apartments for Sale
The majority of apartments for sale in Morocco are in the new cities or ‘Ville Nouvelle’ in French. Sensible planning laws within Moroccan cities such as a maximum of five floors per apartment block, and the provision of underground parking has meant that many apartments for sale in Morocco are in high quality and nicely designed buildings.
Morocco Holiday Homes for Sale
For those that enjoy sunny days on their holiday then a holiday home in Morocco is a perfect buy given that it is sunny here all year round. There are a number of holiday homes for sale in Morocco that have a swimming pool. Morocco holiday homes for sale are also a good investment, as they can be let when you are not using them to generate a good general income.
Property in Marrakech
With over 350 days of sun per year, and only 3 hours flight from London, interest in Marrakech Property is on the rise. Ever since no-frills airlines started flying into Marrakech, investors have realised the importance of Marrakech Property for both investment and as holiday homes. There are tens of Villa and Apartment developments throughout the Marrakech area, and the majority of them are still off-plan, and are due to increase in value dramatically as the demand for Marrakech Property continues to rise.
Marrakech Villas for Sale
Many villas for sale in Marrakech have been built to imitate the architecture of a traditional riad in Marrakech, with a court-yard and a fountain. With over 300 days of sun, a perfect Marrakech Villa for sale is one that has a swimming pool that can be enjoyed. Many villas in Marrakech for sale are near golf courses and views of the beautiful Atlas Mountains. Some villas for sale have quite a large garden and even football pitches and other recreational activities such as table tennis and pool tables.
Marrakech Apartments for Sale
The market for holiday apartments in Marrakech for sale is a well established one. The majority of apartments for sale in Marrakech are in the Gueliz or Hivernage areas of Marrakech. The majority of these Marrakech apartments tend to be in buildings that have a swimming pool. Most of the time, the swimming pool is external, but there are a number of apartments for sale in Marrakech in buildings with internal, heated pools, and in some cases these buildings also have a gym and a hammam. Prices of Marrakech apartments for sale vary from 13,000 MAD per m2 to 35,000 MAD per m2.
Marrakech Holiday Homes for Sale
For those that enjoy sunny days on their holiday then a holiday home in Marrakech is a perfect buy given that it is sunny here all year round. There are a number of holiday homes for sale in Marrakech that have a swimming pool. Marrakech holiday homes for sale are also a good investment, as they can be let when you are not using them to generate a good general income.
Tangier Villas and Apartments for Sale
It could be said that the property market in Tangier has been the most to benefit from Morocco’s property boom. Tangier was for many years a neglected city, despite it’s close proximity to Europe and it’s strategic location on the straits of Gibraltar. Today villas and apartments for sale in Tangier are on par with Marrakech property. Demand for villas in Tangier was largely from Expatriate Moroccans. Today demand for Villas and Apartments in Tangier is international but namely European. Villas in Tangier remain a good investment, with Tangier property prices rising at around 20% annually. Property in Tangier tend to have a special architecture. Tangier Villas tend to be white with green roofs, this is the traditional design that Tangier inherited from Andalusia. Apartments for sale in Tangier along the corniche though, tend to be much more modern. The newly built apartments for sale along Tangiers sea-front have floor-to-ceiling windows and modern interiors.
Morocco Off-Plan Villas, Apartments and Holiday Homes for Sale
Grand property development projects are underway throughout Morocco, with a large selection and variety of off-plan villas, off-plan apartments and off-plan holiday homes for sale in Morocco. Take for example the development called ‘Amwaj’ near Rabat the capital of Morocco. Here there are plans for a multi-million dollar project incorporating cinemas, shopping malls as well as off-plan apartments for sale near the river banks and off-plan villas for sale in Morocco.
Here are some reasons, why investing in Morocco Property is good:
Investing in Morocco Property hit savvy investor’s radars many years ago. For some time, French nationals have bought up dilapidated riads in Marrakesh at knock down prices and added value by restoring them to their former glory and convert into exotic holiday rentals designed to appeal to the ever growing Marrakesh tourist market in search of authentic places to stay in Marrakesh. These riads have since experienced significant capital growth and have proved to be very lucrative investments. No longer an emerging property market, buying off plan property in Morocco took off back in 2003, today there plenty of off plan developments to choose from. This has been largely due to ambitious regeneration plans, tax free incentives and open skies agreements which demonstrate the Moroccan governments commitment to putting tourism and travel to Morocco on the map. An improved property buying process has given overseas home buyers and investors the confidence to invest in property in Morocco.
1. Morocco is cheaper than neighbouring Spain
Property prices in Morocco are 50% of those in popular European property buying hotspots such as Spain, France and Italy. What Morocco currently lacks in significant infrastructure it makes up for with attractive lower costs of living given 1 euro = 10 Dirhams approx, you get a lot for your money. Prices in southern Spain in particular are very high averaging out at nearly 2000 euros per square metre compared to Morocco where one bedroom apartment prices start from as little as 800 euros a square metre. A 10 year build guarentee similar to the UK’s NHBC offers property buyers greater peace of mind. As a rising overseas market, Morocco foriegn buyers should enjoy significant capital gains as investments in Moroccan infrastructure to support the building boom come into fruition.
2. Plan Azure Vision 2010 boosts investment potential
The Plan Azure is part of King Mohammed 2010 Vision which should see some 10 billion euros allocated to bring Morocco’s tourism up to ‘premium’ standards. The aim is to attract 10 million tourist visitors a year by 2010 with the knock-on effect being an increased demand for hotel and holiday accommodation. The Plan Azure centres around six tourist resorts which focus on encouraging local tourism and creating locations which will have long-term tourist appeal. These investment areas together with a package of investments to deliver infrastructure upgrades with new ports, new regional airports, motorway construction, high speed rail links and even a plan to build a tunnel under the sea linking Morocco and Spain, should over the next few years, see any buy to let property investors sitting on lucrative real estate in addition to rise demand for rental property.
3. Budget Airlines bring in more paying tourists
Since the 1st Jan 2006 an open skies policy has been in effect in Morocco and the low cost airlines have flooding in, a strong sign of a country on the up. Less than 3 hours flying time from London and other major European cities, you can now fly to Marrakech for under £70 with easyJet, and Ryanair European hubs will be bases to develop low-cost air access over the next five years. As the cost and accessibility of travel to Morocco improves so too should tourist numbers, again creating a healthy demand for accommodation close to holiday amenities. Figures from Morocco’s Ministry of Tourism show the industry reached a new high in 2006 with some 6 million tourists visiting Morocco compared to 4.4 million in 2002, a direct impact of increased flights and greater awareness of Morocco as a mainstream holiday destination.
4. The Moroccan Economy is healthy and stable
In 2006 the Gross domestic Product (GDP) of Morocco stood at 8%, up on the previous year due to good rainfall. In the 80’s the Moroccan government implemented many economic reforms, which have been supported by the IMF and the World Bank. Many of these reforms such as local stock market modernisation have allowed Morocco to trade with the EU and USA. Changes to taxation and banking systems as well as improved credit availability have contributed to the westernisation of its property market. Today 70% mortgages are available to finance purchase of property in Morocco.
5. The perfect holiday destination
There are many factors blend to create the perfect holiday destination and Morocco has it. It offers the right mix of exotic appeal that travellers wanting something ‘different’ are looking for.
The lure of celebrity gives Morocco more appeal as the latest celebrity ‘hot spot’ with the high profile Beckhams, Jude Law, George Clooney and Brad Pitt all having holidayed there and puts Morocco into the media spotlight helping showcase the country’s tourism offerings. The added advantage is also the ability to enjoy a luxury lifestyle courtesy of Morocco’s low cost of living. Buyers are already drawn by the thousands of pure sandy beaches, a rich culture, fascinating places to explore and spectacular scenary but the new sporting facilities, lush golf courses, and leisure options resorts such as Mediterrania Saidia are set to enjoy will put it on par with many world class destinations and give Morocco its wow factor. Morocco’s greatest asset however remains it’s year round season. From January to December you can enjoy warm, sunny days with little rainfall. A mediterranean climate ensures a long rental season, great news for buyers wanting to maximise the rental potential of their investment.
6. Attractive Taxes for investment property owners
By fostering a tax regime sympathetic to overseas investors Morocco has made itself makes a highly attractive prospect for purchasers of investment property in Morocco due to the added financial benefits. Low annual property taxes and exoneration from certain taxes for a set period of time should increase rental yields overall. Easy repatriation of investments in the future ensures buyer confidence and a significant reduction on property rental tax, exemption on capital gains after ten years and 0% Inheritance tax are all strong draws. For UK investors, there is also the ‘double taxation treaty’ between Morocco and the UK meaning where tax is due, you will only pay it once.
Capital Gains on a Moroccan property
Moroccan Capital gains taxation works on a sliding scale:
Property sold within 5 years of purchase = 20% profit or minimum 3% sales price
Property sold 6-10 years from purchase = 10% profit
Property sold after 10 years from purchase = 0%
Gain is based on the difference between the sales price recorded and the purchase price.
Morocco Property Tax
All property owners are required to pay an annual property tax. For the first five years owners are exempt. The tax is then based on the annual rental value of the property, which is up to 30% on a sliding scale.
Moroccan Property Rental Tax
A buy to let investor who does not ever live in the property, will have to pay 13.5% on the rental p/a.
Morocco Property in 2008
As some property markets have been experiencing a ‘tightening of belts’ when it comes to investment in international real estate over the past twelve months, other property markets have been experiencing just the opposite turn of events, as these markets proved profitable and of interest even when the global credit crunch has crushed others. Morocco is one such market and even in 2008, property in Morocco is proving more and more profitable as the say’s go by…
Morocco has been named by many property experts as one of the markets that has helped them remain in a strong financial position throughout 2007, whilst other global names are lining up to invest money into property in Morocco in 2008. These facts should give individual investors maximum confidence in Morocco as a location to be considered for investing in property.
A popular property company has recently released data showing how they “achieved a 3.2% year on year rise in profits and Jordanian based property developer Mawared is hoping that it can also use the Moroccan market to increase its profits from 2008 onwards.”
In response to this fortuitous time, “Earlier this month the developer signed a massive joint venture with the largest state fund in Morocco to develop projects in the likes of Fez and Tarfya in southern Morocco. The developments combine residential real estate and leisure based commercial properties into mainly tourism and international property buyer focused centres.” – Yet another positive turn about for Morocco.
As was mentioned by property experts, “Mawared are not only banking on the fact that Emaar have proved that property in Morocco remains profitable but quite possibly they are banking on the impressive numbers coming out of the Moroccan tourism market as well.”
In a statement made by the Tourism Minister, Mohamed Boussaid, recently, the minister advises that “the tourism sector generated in the region of 5.27 billion Euros in 2007.” A further indication that there is indeed potential and confidence in Morocco after all.
Were you to ever wonder whether the property market in Morocco was secondary in any way to ‘the government, to the economy and to the future successes of the nation’, you would be sorely wrong, as was specified by a recent report from MAP (the Maghreb Arabe Presse in Rabat) which is in direct support of this fact, showing just how strong a contributor real estate is to the economy in Morocco.
As is expected by all investors and would-be investors of property in Morocco, Morocco’s Vision 2010 blueprint for the nation is set to further encourage and persuade investors that Morocco is the choice of the season, and an excellent investment choice at that!
The plan broken down is as follows: “A very significant and long-term strategic part of this plan is to improve tourism numbers so that they reach an annual sustainable average of 10 million by 2010.”
Recently, resorts being developed are set to ‘combine hotel accommodation with privately owned accommodation – hence the massive and undeniable correlation between desired tourism growth and the development, promotion and desired success of the property market in Morocco.’
The Moroccan government is so committed to the development of exclusively desirable real estate within these key resorts that it has agreed to plans with Dubai based Emaar Properties to ‘develop at 6 destinations across the nation.’
This particular partnership will see to raising the profile of Morocco. The country’s commitment to the development of exclusive and truly sumptuous resorts ensures that interest in the Moroccan property market remains intense as it is already ‘returning positives for real estate as a contributing sector to the overall economy.”
The afore-mentioned report (from Maghreb Arabe Presse) was based upon information supplied by the Housing Minister of Morocco, Ahmed Toufiq Hejira.
This particular report indicates that “since property became such an important part of the nation’s agenda for economic diversification and expansion, foreign direct investments into property in Morocco have reached 0.91 billion U.S. dollars – from 245 million dollars back in 2002. What’s more, there has been an almost 33% increase in the numbers of jobs in the construction industry in the same period.”
It is important for us to point out that through all of these fiscal fundamental changes and upgrades; the Moroccan government has definitely NOT lost sight of the plight of its own people.
Whilst there undeniably and undoubtedly many individuals and groups that are benefitting from the increased underlying affluence of the nation at present, the government in Morocco is currently also implementing the construction of low cost housing whilst providing access to funding for greater numbers of its people to ensure that the divide between the rich and the poor does not become an unbridgeable gulf that only the rich and wealthy can afford to cross.
All in all, one can safely assume that Morocco, as an emerging economy and property sector is doing all it can to promote a healthy, balanced, desirable and lucrative property market and economy as a whole.
Confidence in Morocco Property for 2009
Property forums around the world have yielded a surprising winner in the ‘best places to consider investing’ for this year. Property in Morocco, it turns out, is leading the market as a top investment destination, even though the markets for property in the US, Dubai and the UK have been in the headlines more often recently, with regards to the global financial crisis currently underway. In light of this, it’s easy to overlook the fact that some property markets are handling the slowdown far better than those that are newsworthy due to their poor health.
This week, a few were discussed in the forums, such as Brazil and Morocco, both of which are fairing better in the current hostile market conditions than some of the better-established real estate markets. Morocco property has the advantage over other emerging property markets because it is a European neighbour, with good air transport ties, predictable sunny weather and some marvellous seaside resorts along its Red Sea coast.
These resorts are becoming increasing popular, in particular the Morocco properties with cities and marinas, which are rising rapidly in the popularity stakes when it comes to short-term holiday destinations and, as a consequence, good places for all year long rental returns. In fact, one of the posters in the propertycommunity.com forum enthused about Marrakech and called it ‘a real economic powerhouse and rent yields can be good’, while others recommended property in Tangier.
The government backs most of the developers of property in Morocco and, as such, experienced investors consider them to be much safer prospects. In addition to this, the country has excellent tax laws, no inheritance or capital gains taxes and a low cost of living. All of these factors combine to make accommodation in Morocco an extremely attractive prospect for potential investors in 2009.
Morocco Property Market best Survivors of 2008
Economies in developing countries look set to grow while those of more prosperous nations prepare for recession, and Morocco is optimistic about its abilities to sustain its recent growth. The Morocco property market is a key part of the country’s economy, and while Spanish developer Fadesa has been an early casualty of difficult times, the company’s two Moroccan projects will not be affected. The country’s own leading real estate developer, Addoha, has taken over these units and look set to complete on schedule.
This is good news for investors and for confidence in the Morocco property industry, which is likely to benefit further from planned government projects to replace Morocco’s slums with more affordable housing. A strong shift from the production of higher to lower cost accommodation in Morocco is expected in 2009, arising from the slowing down of the international investment market.
The downturn is anticipated because traditional purchasers of Morocco property, second home buyers from the United Kingdom, Ireland and France, fear recession in their home countries. Concerns were raised about the knock-on effects of the slowdown on the Moroccan building industry. Anas Sefrioui, chairman of Addoha, is optimistic about his company’s ability to sustain itself, by refocusing its efforts to produce low-cost housing units of around 200,000 dirhams (US$25,000) each.
Having secured over US$1 billion in revenue from the 24,000 housing units of the Fadesa acquisition, Sefrioui is confident that the industry for property in Morocco is safe, saying ‘it would have been inconceivable to launch operations of this size if I did not have full confidence in our country’s growth dynamic’. He also pointed out that building tourist accommodation represented only 7% of Addoha’s sales, and that much of that sector was produced for the domestic as well as for the foreign market.
Construction of New City in Morocco
On Thursday, King Mohammed VI launched the construction of the new $2.9 billion city north of Morocco, which is scheduled for completion in 2020. The city, which has been named Ch’rafate, will be built on 1,300 hectares of Morocco property located in Fahs Anjra, and provide 30,000 houses for over 150,000 citizens. It will be situated between Tetuan and Tangier, and is part of the strategic groundwork of the Al Boughaz area’s development scheme, which is set to develop new urban regions inland to prevent a disproportionate favouring of coastal areas.
The project to develop property in Morocco will be undertaken by the real estate firm Al Omrane Al Boughaz, along with international and local property developers. It is designed to improve the road and urban networks in the northern region of the country, as well as provide new housing to satisfy the demand that the Tanger-Med Port and the industrial regions that will surround it will generate.
In addition, it will create a large number of new jobs due to the industrial area that is being established on nearby property in Morocco, while still being environmentally friendly. The city will adhere to all the latest green guidelines to achieve this, and will also provide an urban lifestyle resembling that found along the Mediterranean coast. The city will have a handicrafts centre, tourism-orientated areas, many industrial areas, green areas and city amenities.
During the launch ceremony, the king asked about the 2009-2034 programme of urban development for M’diq city, which is intended to observe the business development on Morocco property between the city and the Tanger-Med Port, replant trees, preserve natural regions, boost financial improvements and attract more tourists into the region. The monarch was also informed of the details of the 2020 Morocco accommodation programme for Fnideq, Tetouan, Tangier and M’diq, which will consist of a further 350,000 houses.
Marrakesh Holiday Flats
If you’re looking for a Marrakesh Holiday Flat to rent, please visit our sister website.
French Properties and Mobile Homes for Sale in France
For property for sale France, please visit our friends My-French-House. They also offer assistance with French holiday home rentals or their currency exchange rate services. Worried about the current climate and economic downturn? We have the PERFECT SOLUTION to help those who want to Punch the Crunch by enjoying quality holidays in France that won’t break the Bank. If you’re interested in buying a mobile house in France, then My French Mobile Home is a dedicated site for Lifestyle Holiday Homes in France.
Morocco Property Links
Here are some Blogs related to buying Property in Morocco and Marrakech:
Morocco.com Blog
Totally Property Blog
Overseas Property online Bog
General Overseas Property Blog
Off-shore Property Blog
