Country: Morocco
The ascension of King Mohammed IV to the throne of Morocco in 1999 sparked a series of events that have resulted in Morocco property becoming a target for property investors from around the world.
An ambitious reformer, King Mohammed is the man behind the Vision 2010 plan, which aims to boost visitor numbers to 10 million per year by 2010, and build 250,000 new hotel rooms.
So far, it appears to be working. In 2007, 7.4 million foreign tourists visited Morocco, and this influx of visitors has prompted overseas investors, including thousands of Britons, to snap up villas and apartments in the coastal areas earmarked for growth under Vision 2010.
Known as Plan Azur, this part of King Mohammed’s strategy provides for the construction of six new resorts in areas like Plage Blanche and Lixux. Also popular with overseas buyers are Marrakesh, Tangiers and Agadir on the Atlantic coastline.
Investors are also increasingly interested in property in Fez, the country’s third-largest city, where prices remain low compared to property in Marrakesh, for instance.
Economic growth in Morocco during the second quarter of 2008 was up 6.5 per cent year on year, but in common with most world economies, the country is now facing more challenging times. Officials believe that visitor numbers in 2008 are likely to be down on 2007, as the credit crunch and falling disposable incomes impact on tourism.
These factors are also affecting the property market, but the fact that the pace of development is being controlled should mean that unlike its near neighbour, Spain, Morocco won’t suffer from oversupply. When the dust settles on the global economic slowdown, Morocco could also find itself benefitting from the fact that it remains a low cost economy – westerners can holiday cheaply here, and ex-pats can take advantage of the country’s low cost of living.
Rental yields in Morocco are currently in the 6.5 to 8 per cent range, which might seem modest compared to some emerging markets, but which should also be sustainable in the medium term. Mortgages with a loan to value to ration of up to 70 per cent are available to foreigners to buy property in Morocco, although the banks have become more cautious in response to the credit crunch.
Morocco property prices rose by 20 per cent in 2006 and 15 per cent in 2007. Figures for 2008 are not yet available, although growth rates are likely to have dipped somewhat, so this North African gem hasn’t quite made it into the top five.
First published in February 2009.First published in Homes Overseas Magazine Jan/Feb 2009. Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
See Also: Morocco
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