Morocco Investment

Morocco - Why it's your best overseas investment

Since the early 20th century Morocco’s unique charm has enticed the likes of Winston Churchill, Yves Saint Laurent, Catherine Deneuve and Mick Jagger and indeed if it were not for their endorsement, Morocco would not be the property hotspot it is today. The result in Morocco today is an essential cool, laid-back vibe, blended with a very distinct cachet so lacking in many other emerging property markets today.

The Sleeping Giant of Mediterranean Tourism

Morocco is evolving with the times and is fast taking its rightful place as a major Mediterranean destination. The country’s Western educated King, Mohammed VI, has compiled a proactive and ambitious programme, “Vision 2010”, to develop the necessary infrastructure to welcome a massive 10 million tourists per annum to Morocco by 2010. The target is already well on the way to being met; in 2006 Morocco received 6.5 million tourists, up from the previous year’s 5.8 million.

Looking around the country, it is encouraging to see great progress underway. The general trend is modern 5-star and to this end brand new, tasteful, low-density tourist resorts, golf courses, hotels and developments are springing up all over the country. New villas, apartments and townhouses are now under construction and highways, railways and airports are all being upgraded to today’s highest standards in readiness for the fresh influx of tourists to Morocco.

For property investors, Morocco’s sustained growth is great news, both in terms of potential capital growth and rental yields. Exciting construction projects are afoot for all buyers eager for a piece of the action while prices, for now, remain low when compared with other established destinations.

Safe Investment in Luxury King’s Resorts

Mohammed VI has another giant plan; the Plan Azur supports Vision 2010 by creating six world-class resorts all over Morocco. These developments are guaranteed by government statute and will benefit from massive state, as well as, private investment. Many investors find this combination hard to beat and feel safe in the knowledge that they are buying into a well researched, prestigious, top-end product backed by the King himself.

Today’s timely investors have a choice from five coastal resorts located on the Atlantic and one on the Mediterranean coast, with thousands of residential units being constructed by international developers. True to 21st century tourist standards, the King’s Resorts will include a total of up to 50 new luxury hotels as well as a host of marinas, world-class golf courses, conference facilities, commercial centres, and health and leisure activities – all tempting propositions for tourists, holiday homebuyers and investors alike.

Budget Flights Spur on Investment

The ‘Open Skies’ agreement signed between the EU and Morocco, signed last year, will result in the opening of new routes to Morocco from numerous low cost carriers such as easyJet and Ryanair. Thanks to these new flights, Morocco is becoming far more accessible than ever before and 3 ½ hour flights from the UK at only 105 GBP return with easyJet now make Morocco a temptingly affordable and accessible holiday destination.

The effect of the low cost carriers can be seen in the explosion of visitor numbers and property prices in Marrakech. Since easyJet began flights two years ago, visitor numbers have grown by 295% and property prices have risen by around 200%.

However, while development of the resorts is still underway, many of the new flights, although planned and authorized, have not begun, such as those to Oujda airport in northern Morocco. This situation in itself is a fantastic opportunity for many investors who see now as the ideal time to act; take a look at the rest of world where low cost carriers have finally been introduced and a noticeable increase in property prices invariably follows of some 30-37%.

The Land of Promise

Since Moroccan independence in 1956 and King Mohammed VI’s accession to the throne in 1999, Morocco has positively shone as a land of promise. With market orientated government policies now in place, Morocco is offering exciting growth potential for today’s investors.

A moderate pro-Western state, Morocco maintains close relations with Europe and the United States. In mid-February 2007, a study published by the Center for Strategic and International Studies called "Arab Reform and Foreign Aid: Lessons from Morocco" concluded that Morocco provides a valuable lesson in political and economic reform - a model which others in the Arab world can draw on, and confirming that it is possible to adopt both reforms simultaneously.

Attractive Legal and Financial Systems

Ratings agency, “Fitch Ratings” regards Morocco as a country that offers “Low foreign investment risk”. In 2006 the country received some 7 billion USD in foreign direct investment and this year’s target is for 12 billion USD, all boding very well for Morocco’s investors.

Buying Moroccan real estate, particularly off-plan property, is widely considered to be a perfectly safe procedure. Recent reforms to land registry laws along with tax breaks and incentives underline Morocco’s firm intent to attract more overseas property purchasers.

The country’s legal and financial frameworks mirror those of France or Spain where property purchase is taken care of by a Notary. Many investors feel reassured by a European style system they can easily identify with.

Multi-Faceted Morocco

At once Arabic and Western, Morocco is a rich concoction of both facets, still holding onto the Moroccan and cosmopolitan moods that have attracted foreign visitors for generations. With forward-thinking government agendas in place to transform the country into a top-class, contemporary tourist destination and a leading economic success, the world stands by in anticipation.

It’s clear that enormous foreign investment and impetus is now going into Morocco to meet its economic targets. Growth figures prove the country is already beginning to see the positive impact of recent initiatives to improve the infrastructure, tourism and commercial environments, all making Morocco the highly exciting investment arena it is today.

Meanwhile, Morocco’s mystical spirit lives on, drawing this century’s star studded homebuyers; the Beckhams, Jude Law and Brad Pitt all come here to enjoy the ethnic, chic and trendy essence that is Morocco. Read any travel or real estate magazine, or glance at any holiday programme and it’s plain to see that Morocco is the “in” place to be.