Featured Development - Oasis Morocco. Click here for more information
Morocco Investment Growth
Morocco is already making a name for itself as a new hotspot for the world's property investors. Morocco´s luxurious new property developments are offering some of the highest standards available and their extremely competitive prices mean that Morocco can boast top quality property in 5 star luxury resorts for a fraction of the price of property of far less quality elsewhere.
The focus on purchasing property in Morocco is huge, with vast numbers of wealthy buyers from around the globe, including film stars and sports heroes, are buying property here. Richard Branson, the Rolling Stones, Malcom Forbes and even David Beckham are believed to have purchased property in Morocco. Morocco property offers, to the rest of us, the convenience of the Costa del Sol at significantly lower prices. With famous names already buying property in new resorts on the African coast it's not surprising that Morocco is widely tipped to become a new elite holiday destination and even, in certain areas, luxury playgrounds for the wealthy like Puerto Banus, Marbella, Monaco & St Tropez. When construction of the many new facilities, luxurious living accomodation, new roads and new marinas and ports are completed, it's expected that the property prices will increase dramatically, thus offering a great opportunity for those who invest in Morocco now to make significant returns on their investments. Also the luxury resorts are expected to attract vast numbers of tourists for holidays generating excellent rental yields for the investors who own these properties.
Capital Growth Predictions:
Many sources offer different views on what is expected to happen to the value of new Moroccan property in the newly constructed resorts. There are some differences in opinion as always but the single common factor is that prices are expected to rise and at a rate that will please investors! The growth rate has been quoted as being around 30% p.a. (Homes Overseas Magazine) but as a more conservative estimate 15% is expected as being very 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 being constructed. It is expected that motgage payments and bills can be covered for the year from the rental income achieved from the peak season months alone. Peak season months are classed as June - September and rental based on a 2 bed apartment costing around €100,000 is expected to be around €2,000 per month.
With 85% rental occupancy currently during the high season and the number of tourists set to grow faster than the amount of available accomodation, this figure is expected to continue growing, meaning even larger occupancy levels for investors and even potential growth in rental prices as demand increases.
Vision 2010
The major catalyst behind the huge growth in Morocco´s tourist industry and the massive amount of overseas investment into the stunning new luxury property developments is the massive national development plan devised by King Mohammed VI in conjunction with the UAE. This project called "Vision 2010" was launched with the purpose of drastically increasing the number of annual tourist visitors. In fact the goal was more specific than this to increase tourism by five fold by 2010 to 10 Million visitors and generate 600,000 new jobs in the process. This very ambitious project was presented by the new and young King Mohammed VI in 2001.
In conjunction with the Vision 2010 national development project the government has announced:
- The creation of 6 new coastal resorts (5 on the Atlantic Coast and 1 on the Mediterranean Coast)
- New motorways to be built and upgraded
- New regional airports to be built and where possible upgraded
- Increase and de-regulate incoming flights from all over Europe by introducing an open skies policy
- New ports, marinas and high speed trains to be implemented
- To support the increase in tourist visitors, the government plans to introduce new shopping malls, golf courses, beach clubs, equestrian centres & spas, all designed to promote a 5 star luxury lifestyle
In Summary - Key Benefits - Morocco
- Beautiful sandy beaches, spectacular scenery, amazing culture - within a 3hr flight from the UK/Eire
- Stunning golf courses, tennis clubs, riding clubs, waterskiing, sailing, scuba diving, hunting, hiking, camel treks
- Mediterranean climate - hot summers and mild winters
- French, Spanish & English widely spoken as well as traditional Arabic
- Costa del Sol is just 30 minutes away by hydrofoil from Tangiers
- Accessible (Tangiers) via helicopter, ferry, regular flights
- Experience Moorish culture at its best. Property prices 50% less than other European resorts
- Low cost of living - experience a luxury lifestyle at little expense
- Booming property market
- 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 the peak season
- 70% mortgages available
- Huge project (Vision 2010) to increase tourism backed by King Mohammed and the UAE. Aiming to improve infrastructure and increase tourism by 10m visitors per year
- Increased tourism generated by the Vision 2010 project will create huge requirement for rental accomodation
- Capital growth around 15% - 30% based on last year figures (30% Homes Overseas Magazine)
- Vision 2010 to provide new roads, marinas, trains, 5 star resorts, shopping malls, beach clubs
- Open skies policy activated on 1st Jan 2006 will allow low cost airlines to service Morocco and create competition lowering fares.
- Yacht club & berth fees for under £27/month
- Safe investment - Notary supervised property registration similar to France & Spain
