The most popular places for property sales in Morocco are
Marrakech, Fez and Essaouira, although the new resort developments
along the coast also offer some opportunities. Sidi Ifni, Agadir,
Essaouira, El Jadida, Tangier and Casablanca are all areas along
the Atlantic coast and Ceuta, Tetouan and Nadir can be found along
the Mediterranean coast. Marrakech is located inland.
Plan Azur
Although there is no rental market as yet, the interest
surrounding these developments combined with the country's
increasing number of tourists means occupancy will be high. A lot
of the 'Plan Azur' resorts are centred on golf as the sport is a
big passion of the kings. As a result some of the world's greatest
golf courses are to be built here and when buying a property it is
worth checking if golf membership is included in the price. Samanah
Country Club is one of the new developments due for completion in
2010, with 600 villas across a 700 acre site. £237,000 will buy a
three bedroom property with a pool however it does not include
membership to the resort's golf course. Tagazout is another new
'Plan Azur' resort 25 miles south of Agadir compromising a 4.5km
beach, two hotels, a golf course, a golf academy and a spa and
fitness centre. With so many resorts to choose from, be sure to see
what extras are included in the property price. Investors at 'The
Salama Valley Resort' receive a 900 euro card to spend in the
resort, free return flights for the first three years, free
healthcare and free house keeping. The £101,000 price tag also
comes with a nine year buyback guarantee and 7% annual rental
income guaranteed.
There is neither a better nor worse coast for investment, it is
merely a matter of personal preference. Choose the Mediterranean
coast if you prefer a warmer climate and the Atlantic coast if you
want to catch the 'Alizee', the local name given to the strong
winds that offer perfect conditions for wind sports.
Essaouira is located along this coast and has been nicknamed the
'surfing capital' of Morocco, alongside other attractions such as
sailing, horse riding, yoga and kite surfing. Essaouira attracts
thrill seeking holiday makers all year round and June is its
busiest month. It is not only adrenaline junkies that travel here
though, the walled old town hides spice and fish souks and
labyrinth streets affording a rare glimpse at times gone by.
Essaouira
Two and a half hours from Marrakech on the Atlantic coast,
Essaouira is the second most popular destination for homebuyers
after Marrakech. Although there is no official price index,
property prices here are said to have increased 200% over the last
four years. The city was once the port for Timbuctou, and as a
result has a wide mix of cultures. Essaouira has the only medina
with a grid system, as it was one of the first towns to have an
urban planning policy. The area has also proved popular with
film-makers, and was the location for Oliver Stone's Alexander and
Ridley Scott's Kingdom of Heaven. The new mayor however, has placed
restrictions on the construction of guest houses after a surge in
the numbers being built provided too much competition for the
larger hotels. The market here is particularly suited to second
home buyers with property cheaper than in both Marrakech and
Fez.
Marrakech
Marrakech is known as the 'entertainment capital' of the
country, and has long been the most popular tourist destination due
to its year-round desert heat, its rose-red medina, its boutiques,
It is even home to one of the famous Pacha nightclubs, hosting
events with world renowned DJs and attracting a famous crowd. It
also has the most developed property market with 85% occupancy
rates achievable during the high season making it great for rental
income. A fabulous mix of traditional and modern, the city is
within easy reach of ski slopes and also boasts 3 golf courses,
with 7 more planned in the coming years. It has attracted stars
such as Jean-Paul Gaultier and Yves Saint-Laurent, and until
recently was the most accessible Moroccan destination from the UK.
This made it the most sought-after place to buy property, and
prices reflect this. The current trend for property developers is
to buy old houses in the commercial district of Gueliz, knock them
down and build modern apartment blocks in their place, creating a
'pied a terre' market for long weekenders from Europe. Whilst
Marrakech still presents good opportunities for investment and is
an exciting destination, prices here may be prohibitive as a
villa currently costs upwards of £237,000. An alternative option is
to buy land in the countryside around Marrakech and to build on it:
the Route d'Ourika, the Route d'Ouarzazate and the Route de Fez are
three areas which are gaining in popularity, the first due to the
stunning views and the second two due to their proximity to
facilities such as the American School, large supermarkets and Club
Amelkis, a new 18-hole golf course.
Rabat
Rabat as the country's capital is more cosmopolitan than some of
Morocco's other cities and boasts some of the regions best golf
courses which are a popular allure for tourists. Economic
reforms have had a substantial impact on the property market
meaning that in the last few years it has experienced exceptional
growth.
Tangier
A less popular destination but one set to dominate the Moroccan
property market in coming years, is Tangier. Located on the
northern tip of Morocco this bustling port enjoys lively markets, a
superb bay and delectable beaches. Seaside homes can be bought for
less than £200,000 and Mayor Mohammed Hassud has been head hunted
by the young King to change this area from an industrial hub into a
tourist one. The city's landmarks are to be cleaned up and five
kilometres of coast has been set aside for property and hotels.
What is more, if the proposed tunnel link with Europe goes ahead it
will welcome a constant stream of pleasure seeking tourists each
year. Prospects for short-term letting options are encouraging and
with the UK just a two and a half hour flight away, Tangier's
accessibility is one of the easiest in the country. Experts are
finding that there is also growing demand for long-term rental
property making it ideal for an investor seeking stable investment
options.
Fez
Fez, a Moroccan Florence, prides itself on having the most
elegant and highly-decorated houses in the country. It is also
considered to be the best preserved medieval medina in the world
and has been described as 'the most beautiful city'. Although it is
somewhat quieter than other Moroccan hotspots, it is the ideal
place to go to get your hands on a traditional home at a bargain
price. Indeed, property can be 50% cheaper than Marrakech with the
potential for between 20%-30% capital appreciation every six
months. The city, once the nation's capital now has a significant
number of run down properties left vacant or poorly maintained from
when inhabitants fled to the new capital Rabat and new commercial
hub Casablanca in 1912. All these properties are apparently for
sale and offer great opportunities for developers wanting to build
stylish hotels, or individuals lured by the challenge of a
restoration project. It must be remembered however, that this is a
time consuming and expensive process. It is also important to
obtain a building permit or 'roska' from the government office
which costs 100 dirhams and is generally attainable in a couple of
days.
Buying an apartment in one of the old palaces, once inhabited by
ruling oligarchy, could also prove to be a shrewd move. Traditional
un-renovated dars here are available from anything between £6,800
to £40,580 whilst riads generally cost between £24,870 and £74,609.
The fact that riads are so sought after is reflected in their
elevated prices, meaning it is often better to opt for dars which
are easier to attain and are therefore cheaper. It is
unlikely that Fez's property market will mirror the success story
that is now Marrakech within the short term, however for those
willing to invest in a long term market, Fez may well be the ideal
location. Those interested in taking advantage of the growing
tourist industry should be cheered by the fact that the Moroccan
Tourist Ministry have made it easy for foreigners to obtain
licenses to operate bed and breakfasts. Whilst other cities
have restrictions on such permits, the government's aims to
encourage foreign direct investment, bolster the tourism industry
and renovate the medina in Fez mean that this type of enterprise is
encouraged.
Saidia
An example of an area benefiting from Plan Azur investment and
emerging as a promising investment hub, is Saidia. This large
master planned resort development is three hours by air from the
UK, has a perfect Mediterranean climate and is being built by one
of the largest developers in Spain. It is also the only Plan Azur
area situated on the Mediterranean coast and has a variety of
villas, apartments and penthouses for sale. The €1.6 billion,
7,000,000 sqm development of Mediterrania Saidia is due to complete
in 2009 and is poised to create a region blessed with world-class
amenities which will create a series of resorts that have already
been billed as 'Europe's new holiday centre'. The increase in
tourism is likely to create a situation where demand significantly
outstrips supply, and at least over the next five years, capital
appreciation should be very good. One bedroom apartments at
Mediterrania Saidia are available from £52,600 and appreciation on
these properties is expected to be strong.
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