Real Estate Property Investment Series: Focus Morocco 2007
The Moroccan government realised that the way forward for their nation in terms of creating employment and boosting the economy significantly was to increase tourism and to create an environment so attractive for investors that they would come in their droves and buy up real estate stock.
To that end the government has been promoting Morocco around the world – there is a permanent stand at Walt Disney World Resort in Florida heralding the virtues of this North African nation that practically touches Europe across the Mediterranean Sea that divides it from mainland Spain for example, and now the skies over Morocco are open to cheap flight operators from across Europe and the UK. The nation has year round sunshine and is directly south and a short flying time from affluent Western Europe and all of these factors are starting to affect Morocco positively.
In 2006 in the first nine months alone tourism traffic was up almost 10% on the previous year with revenue generated from tourism up almost 30% which proves that the government are targeting the ‘right’ sort of tourist – i.e., the ones who come, stay, enjoy and spend money in Morocco! Looking to the longer term the Moroccan government has plans to increase tourism until 10 million visitors annually enter the nation by 2010. There are even plans afoot to build a tunnel under the sea to connect Morocco to Gibraltar in Europe…
‘But why all this information about tourism’ I hear you ask?
Because it is the tourism market that property investors in Morocco are targeting. On the one hand they are targeting those seeking villa and apartment rental and on the other hand they are aware that today’s holiday maker is tomorrow’s second, retirement or holiday home buyer. And investors really are in Morocco buying up and developing real estate stock. Already six brand new coastal resorts are in the planning and development stages, money is flooding in from Dubai and Qatar based development companies and European buyers are purchasing off plan knowing full well that their real estate assets are appreciating even before they are completed and handed over. Buyers in 2007 have a chance to buy in ahead of the continued predicted rise in tourism and before Morocco is established in many people’s minds as a place to invest in real estate.
Consider buying off plan and flipping stock or better still, simply buying and renting to the tourism market on the Atlantic or Mediterranean coasts or in the mountainous ski resort of Oukaimeden. Rental income is earned tax free in Morocco for the first five years and those who hold property for ten years or more pay no capital gains tax when they resell, furthermore one is not subject to local inheritance tax in Morocco either. In conclusion - Morocco offers an investor a wealth of opportunity. Basically an investor needs to consider his preferred investment approach and his target market and then seek suitable real estate with room for growth or with prospects for returning good yields.
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Morocco Property Investment - A New Overseas Investment Property Hot Spot
A number of factors have come together to make Moroccan property investment a fantastic opportunity for overseas property investors. If you want great capital growth and an opportunity for significant income from the buy to “let market” then Morocco can offer you great risk to reward If you are considering overseas property investment you should think of morocco property as an investment first. Here are the reasons why: Investment property in Morocco at present is offering annual capital gains of up 35%. This capital growth is expected to continue, as tourism and cheaper flights make morocco more popular. Morocco is already a popular tourist destination and the government is allocating 10 billion euros to increase tourism by several million visitors per annum. Of course, as tourism grows so does demand rental properties. You can not only make great annual capital gains with low risk ,but supplement this with a significant income from the “buy to let” sector. If you are looking for cheap property for sale that has excellent capital growth potential then Morocco offers you outstanding risk to reward. This market is still growing and capital growth looks set to continue for years to come. Morocco Lifestyle With its geographical location, just south of Spain it is seeing an increasing number of tourists and investors from Europe and other overseas locations. Morocco is a country of stunning beauty, but also has the infrastructure to attract an ever growing number of tourists which include: • Pristine clean sandy beaches and crystal clear seas. * The stunning Atlas Mountains and the Sahara desert. • A wealth of recreational facilities including: Fishing, scuba diving, golf, tennis hiking, Camel treks and a wealth of historic Moorish culture. * Up-market tourist developments, that bring with them excellent cuisine, shopping facilities and improvements in infrastructure. • A wide variety of languages are spoken and Spanish, English, Italian and French are common. • It has a perfect location for other destinations to explore such as southern Spain, which is under an hour away. • A great climate that includes, both hot summers and warm winters making. The economic and political climate Of course, all the above advantages of lifestyle are bringing more people to morocco than ever before. This mass influx is being encouraged by huge investment to improve the facilities and infrastructure and makes Moroccan property investment attractive to buyers seeking both capital growth and rental income. • Property prices are cheap and are up to 60% less than other similar Mediterranean resorts. * Capital gains in property can be up 35% in many locations. • Morocco has a very Low cost of living. For example, Morocco is far cheaper than its near neighbor Spain and provides a luxury lifestyle at affordable cost. • Morocco has a booming property rental market with occupancy of up to nearly 90% in the peak summer months. • Taxes are cheap. For example, tax on any capital gains is a maximum of 20% and in many cases can be nothing at all finally, there is no inheritance tax to pay finally, there is no annual property tax for 5 years. • Finance is available and up to 70% mortgages are available to overseas investors. For any property investor the major criteria for buying are: • Affordable property prices with significant capital growth potential. • Low taxation and flexible finance facilities. • A stable economic and political climate that will foster growth. Add in a buoyant “buy to let” market and it is no wonder Moroccan property investment is growing in popularity and the trend looks set to continue. Discover more about investing in property in morocco and you may be glad you did.