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Wednesday, 05 November 2008 00:00 |
With its exquisite terrain and promise of real value for money, Morocco is considered one of the hottest up-and-coming investment property markets.
Everyone - from footballers and Hollywood stars to savvy consumers with some spare capital - is buying in the North African country; it promises low costs, impressive growth and high rental yields.
A leading destination
Morocco is now one of the world's top destinations for international property investment and appeals to the whole gamut of real estate investors.
Rio Ferdinand, Richard Branson and the Rolling Stones are some of the more high-profile parties with plush pads in the country, but they are not alone.
In fact, the Association of International Property Professionals recently revealed that Morocco was the fifth most popular destination for Brits purchasing a second home overseas in 2007, with 4.9 per cent of the total market.
This is all the more impressive when it is considered that two thirds of overseas property sales occurred in established territories last year.
Investment in a bright future
Under the terms of the ambitious Azur Project, Morocco's ruling family hopes to increase tourism from just over two million to ten million annual visitors by 2010 - phenomenal growth that would have a massive effect on demand for rental accommodation in the small country.
To this end, the Moroccan king has committed to dramatically improving the country's infrastructure and tourism facilities, the fruits of which can already be seen in the form of new roads, marinas, ports and luxury apartments.
Developers from as far as Europe and the Middle East are investing heavily into residential and commercial projects. Dubai-based Kensington Real Estate is one of the most recent to have expressed its great interest in Morocco.
Popularity increases demand
As with most leading property markets, success is built upon a foundation of strong tourism and economic growth, both of which Morocco enjoys in spades.
The coastal cities of Casablanca and Rabat, and Fez in the north, are popular among holidaymakers. But approximately 70 per cent of Morocco's 6.5 million annual foreign visitors stay close to capital city Marrakech and Agadir, the country's main resort town.
Meanwhile, the World Travel and Tourism Council predicts that the tourism industry will grow by more than four per cent per annum over the next ten years.
This high level of demand for accommodation is compounded by property prices that are up to 50 per cent cheaper than their European equivalents, but still come with forecasts of 15 per cent annual growth rates attached.
On top of all that, 85 per cent rental occupancy levels during the high-season and a ready supply of mortgage credit make Morocco an extremely handsome proposition.
Attempting to put its appeal into words, popular television celebrity and property expert Jo Sinnott - host of Real Estate TV's Next Big Thing, told website Property Wire that the tourism industry is growing from strength to strength.
"You can't deny the natural lure of the country - it's short haul, it has fantastic weather, it has so much history and increasingly more and more people want to travel there, so there is massive property investment potential," she said.
Peter Treherne, of Independence Properties, commented: "The Moroccan government is investing a huge amount into the country's tourism.
"With excellent build quality, good capital growth prospects and an ever-increasing rental market, Morocco could well be one of the property investment stars over the next three to five years." |
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