Should You Invest?
Morocco presents good opportunities for investment buyers thanks
to its developing infrastructure, tourism industries and pro-active
government making moves to develop and attract FDI.
The 'Azur plan', streamlined by the King to increase tourism in
Morocco, is another incentive appealing to investment buyers. The
Azur plan aims to triple the number of tourists visiting each year
to 10 million by 2010. The plan will create 600,000 new direct jobs
and almost five times this number of indirect jobs. Six new
generation seaside resorts will be created with different themes
and details specific to individual customers. The opening price for
a 2 bedroom property in one of these resorts is €180,000.
- Property prices are currently very competitive.
- Capital growth is estimated at around 15% - 30% based on 2006
figures (Homes Overseas Magazine quotes the growth to be nearer
30%).
- Rental occupancy currently reaches around 85% during peak
season and is expected to increase as the Vision 2010 tourism drive
continues.
- 70% mortgages are currently available.
- The Mediterranean climate brings hot summers and mild winters,
permitting
year-round tourism.
Rental Yields
In Morocco it is very possible to cover both mortgage payments
and bills throughout an entire year from the rental gains achieved
during high season. A €100,000 2 bed apartment can expect to
generate a monthly rental yield of €2,000 during the four high
season months and the buyer can easily live off this income for the
remaining months of the year.
Price History
Morocco offers properties for all budgets starting at anything
from £10,000 to £1 million. Prices for luxury properties have been
rising for the past thirty years, reflecting increasing European
interest in the property market coupled with consistent demand and
low vacancies in holiday lets. Morocco is a relatively new market
for foreign investment, as it is only for the last four years that
investors have been allowed to export profits from the sale of
residential property. Although prices have been rising at around
15% per annum they barely compare to those of nearby Spain where
prices for a 3 bed villa in the exclusive Marbella, Golden Mile
vicinity can often exceed the £1m mark. It is currently still
possible to buy a large villa for around £123,500 in less popular
regions.
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