Morocco's Strong Economic Performance
Morocco's strong economic performance clearly demonstrates that the economic and structural reforms undertaken since the mid-1990s are working well. Many of these reforms, such as local stock market modernisation, have facilitated Moroccan trade with the EU and USA.
More recently, Morocco has introduced measures to boost foreign direct investment and trade, including the signing of a free trade agreement with the US which came into force in January 2006, and the selling of government shares in the state telecommunications company and in the largest state-owned bank (Source: IMF).
The Morocco Tourist Market
With a new 'open skies' policy bringing in low-cost flights, a €2.2 billion government investment in infrastructure and a growing reputation as a playground for the rich and famous, Morocco is on course to almost double tourist numbers by 2010, presenting an excellent opportunity for overseas property investors.
Morocco's three most popular destinations all recorded growth in visitor numbers on previous years figures during the first half of 2007; 12% growth in Marrakech, 9% growth in Casablanca and 3% growth in Agadir.
Stable Economy and Capital Growth
Morocco's strong economic performance clearly demonstrates that the economic and structural reforms undertaken since the mid-1990s are working well. Advancements in the country's taxation and banking systems, as well as improved credit availability, have been key changes. The most positive amendments have been noted in the ease of registering property. Previously ranked at 102 in the world, Morocco has now moved 49 places to 53rd in the world for easy processes for property registration. These moves to reducing 'red tape' have contributed to the westernisation of Morocco's property market, opening up the country's potential to foreign real estate speculators.
Rental Yields in Morocco
Rental yields in Morocco vary depending on the location, however quality properties in Tangier and Marrakesh often achieve in excess of 8% per annum especially with villas and traditional Riads. Newer regions such as though being constructed as part of the Vision 2010 - Plan Azur developments will probably not create the same revenues but with the increase in tourism, the heavy marketing of these off plan developments they should still yield very well. Some of the developers are offering Guaranteed Rental Schemes having already brokered agreements with travel companies and carriers.
Buying Property in Morocco
One of the key attractions to the Moroccan property market is the relative real estate prices – around half the price of European hotspots such as Spain, France, and Italy. What's more, the cost of living is comparatively low. As a result, the market has grown by around 50% to 75% since 2001, with new developers moving into the market from Dubai and Europe offering excellent investment opportunities (Source: Morocco Official Website).
Equally, rental yields are showing impressive performance; average rental yields of 8.23% have been registered in Marrakech for apartments, with the smallest apartments (approximately 60 square metres) generating yields of 8.86%. According to the Financial Times, "Morocco is experiencing a booming property market, offering a competitive property investment opportunity".
The resorts now being developed are expected to be generating excellent rental yields for investors, with occupancy rates already as high as 85% in the high season and with more tourists arriving every year. The general consensus is that capital growth will also rise in line with increased tourist demand, with Homes Overseas Magazine estimating the rise could be as high as 30%.
Morocco a "Buy to Let" Market
With the growing tourism industry in Morocco and low costs direct flights from the UK and other European countries, Morocco provides interesting buy to let investment opportunities
Property Hotspots in Morocco
Although off plan property in Morocco has been available for foreigners to buy for a few years now, the developments are now starting to take shape and will be attracting tourists as well as investors in the near future.
The most common searches for Moroccan property according to Obelisk's SEO specialist Wito Schouten have been in the Mediterrania Saidia resort area. Other popular locations include property in Tangiers, Tetouan and Marina Smir and Casablanca.
Morocco Weblog
