Why Buy Morocco Property
- Cost of living is low - nearly everything in Morocco is cheaper.
- Morocco provides an opportunity to invest in property at the start of a regional development plan - get in early!
- Best property prices, 50% less than most other European resorts
- Booming property market with high capital growth
- Between 0% and 20% tax on any capital gains
- 0% Inheritance tax to family
- No annual property tax for first 5 years
- Rental occupancy reaching 85% most years during peak season
- 70% mortgages available
- Morocco is less than 3 hours flying time from England and most other European cities.
- Morocco aims to attract over 10 million visitors by 2010. Your property could be the perfect holiday base, providing rental income for many years.
- The climate is warm and sunny with extremely low rainfall.
- The countryside is stunning and mountainous, with beautiful Mediterranean beaches.
Morocco has the advantages of a key strategic location, a large consumer base, as well as the on-going
ECONOMIC GROWTH as a result of reforms, which make it a desirable destination for foreign investment. Overall, the economy of Morocco has reaped the benefits of these numerous reforms since around 1980, bringing it into the international market. This has had the effect of increasing income per capita, reducing fiscal and account deficits and stabilizing the level of inflation at a relatively low 2.2 per cent. The catalyst for reform was Morocco’s desire to establish trade agreements with the European Union and the United States, which it now has. Furthermore, its already established agreements with other African and Arab countries are a further advantage, not only to its own economic stability, but also to its attraction for foreign investment, as it provides an entry point into these markets. The tourist industry is becoming an increasingly key part of Morocco’s economy, though like many other destinations suffered a negative impact in the period after the September 11th attacks in 2001. However, the country’s Ministry of Tourism is taking decisive steps to promote the industry, and its initiative
"VISION 2010" was launched to expand tourism through significant government investment into the infrastructure. With over 2 million tourists currently visiting each year, and further facilities being developed to cater for future demand, the country represents an interesting new market for potential real estate investors.
Morocco Economy
Morocco can be described as a stable economy enjoying steady growth. The Jettou government continues to encourage reform, liberalization, and modernization to stimulate growth and employment.
The Dirham, Morocco´s unit of currency, has experienced growth of 18% since 1990. The economy is expected to be boosted further if, as is expected, Morocco becomes part of the Euro-Med free trade zone. As an important element of the national development plan of “VISION 2010”, the chief economic objective is to establish a close relationship with the European Union.
With the aid of the International Monetary Fund (IMF) and an economic reform program, Morocco has managed to restrict government spending. Today, employment remains mainly within the volatile agricultural sector, but over the long term Morocco will have to move its economy away from agriculture and develop a more stable economic basis for its growth. One area is in the growing tourism market, where significant amounts of employment are being created in the construction and service sectors which will later be transferred to the tourism sector.
Morocco has held inflation rates to industrial country averages over the past decade due to a foreign exchange rate anchor and well-managed monetary policy. Inflation in 2005 was at 2.5%. The country maintains a current account surplus and foreign exchange reserves are strong, amounting to around billion.
In 2005 the Moroccan Government secured a Free Trade Agreement (FTA) with the USA. The U.S.- Morocco FTA is the second in the Arab world and the first to be made in Africa. It immediately eliminated tariffs on 95% of US trade in consumer and industrial products. Further FTA reforms and liberalization are currently underway.
Morocco Investment Growth
Morocco is already making a name for itself as a new property investment hotspot. Morocco´s luxurious property developments are generally accepted to be of the highest standards available and very competitive prices allow Morocco to boast top quality property in 5 star luxury resorts for a fraction of the price of far less caliber property elsewhere.
Morocco has attracted a great deal of media coverage with a large number of the world’s wealthy, including film stars and sports heroes, having already purchased property here; Richard Branson, Mick Jagger, Malcom Forbes, and even David Beckham have all purchased property in Morocco. Widely tipped to become the next elite holiday destination, Morocco property offers to the rest of us similar style to Puerto Banus, Monaco or St. Tropez at significantly lower prices.
When construction of the many new facilities, luxurious living accommodation, as well as new roads, marinas and ports is completed, it is expected property prices will soar. The resorts are set to attract vast numbers of tourists on short-term holidays, generating excellent rental yields for investors of buy-to-let properties.
Capital Growth Predictions:
Given all indicting factors, it is inevitable that property prices will rise at a rate that will please investors. The growth rate has been quoted at around 30% (Homes Overseas Magazine) while as a more conservative estimate, 15% is expected to be easily achievable.
Rental Yield Predictions:
Rental income from Morocco based property is also of great interest to investors as good rental yields are achievable from property in the new luxury resorts currently under construction. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved from peak season months alone (June to September) and rental based on a 2 bed apartment costing around €100,000 is expected to be around €2,000 per month.
With the current statistic of 85% rental occupancy during high season and the number of tourists set to grow faster than the amount of available accommodation, this figure is expected to grow to create even higher demand for property. With this will come an increase in rental prices.
Contact our team for more information
Contact our team for more information 
