10 Reasons Why You Should Invest in Property in Morocco Now

Property in Morocco as an investment commodity or as a holiday home choice has been hitting the headlines in everything from British newspapers such as The Times to the global satellite television channel Real Estate TV - which means it’s highly likely you’re already mulling over the still fairly sparse data available as well as the likely property investment prospects from Moroccan real estate and trying to determine whether the market has legs to support your personal property investment objectives.

In which case our guide to the ‘10 reasons why you should invest in property in Morocco now’ should answer your ongoing questions, alleviate any doubts you have and possibly even convince you that Morocco is a fantastic place to invest for attractive medium term price appreciation and good long term rental yield gains.

1) Climate and Culture

Morocco is a true winter sun destination – in fact it has the perfect climate year round.  What this means is that it is a year round location for tourism meaning an investor seeking rental returns from the tourism market has a 12 month season instead of the 3 – 6 month season you get in most other tourism resorts in Europe and indeed in the rest of the world.

Add to this the fact that even though Morocco practically touches Europe it is in Africa and it has an incredibly rich and varied culture as a result which lures high levels of visitors annually, many of whom return repeatedly because the holiday experience in a nation with a perfect climate and fascinating culture is second to none.

For you cold hard real estate investor type business persons this adds up to a strong tourism base to target with your property investments in Morocco!

2) Language and Laws

English, French and Spanish are all languages spoken, used and understood in everyday life meaning that it is simple for wide numbers of tourists, investors and business persons to communicate easily and effectively in Morocco. 

Add to this the fact that the local laws are based on a combination of long established French, Islamic and Jewish legal traditions and it is possible for any property purchaser to make themselves understood in Morocco and to themselves understand the buying and ownership of real estate laws and traditions making Morocco an accessible country.

3) Political Position

Morocco is politically stable and it has an incredibly forward thinking and dynamic government determined to make the very most of the nation by boosting its economy through tourism and real estate.  To that end a buyer can purchase safe in the knowledge that his investment is welcome and built on solid political foundations in a nation where property investors are considered key to the future dynamic progress of Morocco.

4) Tourism Investment Plan

Back in 2001 Morocco outlined its vision for the next decade and part of that plan was to pour considerable investment into the promotion and attraction of international tourism.  As a result significant and sustained investment is now being ploughed into the creation of stunning resorts across the nation in which property investors can already purchase real estate units and which will no doubt have the desired effect of bringing in greater numbers of tourists year on year.

5) Tourism Numbers Increasing

As part of the government’s aforementioned vision for the next decade of development and economic progress in Morocco they planned to do everything to increase visitor numbers from 2 million a year to 10 million a year by 2010.

In terms of the progress being made towards this target it is so far very good indeed – for example in the first three quarters of 2006 visitor numbers were up almost 10% on the previous year’s figure with average spend per tourist up over 25%, and by the end of 2006 there had been an overall growth of 12% on the previous year’s figures according to Obelisk International.  They report that 2006 saw 6.5 million tourists in Morocco and 53 billion dirhams in tourism related revenue generated.

6) Accessibility

Morocco has an ‘open skies’ agreement in place which has brought in the cheap flight operators and what’s more, it is geographically incredibly close to mainland Europe meaning flight times and ferry times are short making Morocco attractively accessible.

Marrakech airport is already being expanded to handle the rapidly increasing tourism numbers and new motorways and roads are being constructed to make the nation more accessible internally.

7) Tax

Capital gains tax is low and runs between 0% and 20%, inheritance tax in Morocco is 0% when assets are transferred to another family member and there are no annual property taxes to pay for the first 5 years that you own real estate in Morocco making it a tax attractive country in which to invest.

8) Security of Title

Within the government sponsored tourism resorts across Morocco where the majority of investment is being centred, property titles are guaranteed by the government’s backing of the development giving investors significantly stronger peace of mind than when they buy in other emerging markets or even in other locations in Morocco.

9) Low Prices – High Potential Gains

Currently property prices in Morocco are famously attractive – low land prices and labour costs as well as the government’s determination to bring in international investment means that property investors can buy real estate stock across Morocco for prices far lower than they encounter in any established European market.

This discrepancy will not continue for long because land is becoming more in demand and greater interest in property in Morocco is bringing more money in to the property market.  As affordability and demand increase and supply begins to restrict, so the climate is ripe for increasing prices which means that someone who buys now will be buying at the best possible time to benefit from this price expansion.

10) Low Cost of Living

And finally – the cost of living in Morocco is incredibly cheap compared to the cost in Europe and North America.  This is having a dramatic effect on the numbers of expats and retirees actually contemplating a permanent move to Morocco which increases and diversifies the base an investor has to consider and also provides an investor with a potentially strong exit strategy when the time comes to sell on real estate in Morocco.

Special Reports: Property News for Morocco

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