Where to Buy Property in Morocco in 2008

Thanks to an innocent article in the Daily Telegraph towards the end of 2007 about where to buy property abroad in 2008 for decent returns, every single website and newspaper in the world now seems to have jumped on the predictions of the Telegraph and are stating categorically that for the best returns in 2008, we should all be heading for Morocco.

Oh well, well done for catching up with us at Amberlamb we say!  We’ve been extolling the virtues of the real estate market in this North African nation for years!  Those who have heeded our advice already should enjoy some impressive returns this year and on towards 2010…but if you have yet to buy, where should you be buying property in Morocco in 2008 if you really do want to enjoy a return on your capital investment in the form of price appreciation and/or the best rental demand and yields?  Well, read on to find out, because not every corner of this nation’s property market will be as successful as others in 2008.

There are three main aspects to the profitable side of the property market in Morocco if you want to get relatively general about it.  You have the coastal marketplace which is very much a tourism based market in terms of rental and resale demand…although there are some retirees and brave expats relocating to live full time along the Moroccan coastline - and as the country remains so affordable, so these numbers may well increase.  You then have the Marrakech market which is supported by local demand for both rental and resale property, you have tourism and international demand and there is a base of commercial potential as well.  And finally you have the emerging outsider Oukaimeden, and ski based property in Morocco - which is possibly an exceptional longterm bet.

The most popular type of property for sale in Morocco by far at the moment is coastal based and tourism focused.  For a start this type of property is being marketed the most heavily by developers and by the team promoting the attraction of Morocco in support of the King’s drive to boost tourism significantly by 2010.  Additionally, the coastal developments in Morocco have already received the strongest commitment financially speaking from the largest number of international backers such as Dubai based Emaar Property for example.

The attraction of buying up second homes or investment property to let out along the North African coastline has risen in appeal as low cost carriers have entered the Moroccan skies.  And thanks to Easyjet who are expected to announce an increase in the number of flights it has between Morocco and mainland Spain in 2008, an increase in accessibility and the overall affordability of accessibility will ensure demand for these types of property remains intense - providing a buyer with resale demand for the realisation of any short term increase in capital appreciation and rental demand from tourists as well.

The key to securing a decent income producing property and one that will enjoy the best in the way of capital appreciation is choosing your location very carefully.  Look at airport, amenity and beach access, look at construction density, look at build quality and ensure you negotiate your entry price carefully as there is plenty of room for negotiation only at the outset!  If you sign on the dotted line at the asking price, don’t expect to enjoy strong capital growth on your investment in our opinion…

As for Marrakech, you can find some stunning character properties for sale.  Many of these require significant investment to return them to their former glory or indeed enhance their desirability.  Such projects are something of a labour of love – but if you select a well located property and ensure luxury is the driving factor behind your decisions for renovation and remodelling, you may well find you can either resell at a significant premium to the locals in search of a weekend getaway or you can target international purchasers or indeed tourism based demand.

If you want strong returns and/or short term returns avoid a lot of the new construction in Marrakech.

And finally – the emerging outsider.  It’s still news to many people that Morocco is home to a ski area…but it is!  And Oukaimeden could well be the best location for those who want the lowest buy in prices for property in Morocco and the longest term potential for price appreciation and rental yield expansion.  Those who buy in now really are pioneering as the resort is less than impressive and will require massive longterm, sustained and focused investment if Oukaimeden is to achieve its potential.  But this may well be a gamble some are willing to take, for the returns will be there once the long term investment effort has been made.

Whatever approach you’re thinking of taking, do your market research carefully.  Ensure demand for your property type exists, ensure your investment approach is viable, get an independent solicitor involved in the buying process to ensure your best interests are looked after, and finally, bear in mind that a slow down in many property markets around the world will have a likely knock on effect even in a country like Morocco.

Special Reports:

Morocco Investment Property Facts
The Moroccan property sector is diverse and offers property investors both instant rental income and long term price growth potential

Morocco Property Buying Process
It’s becoming increasingly fashionable to buy property in Morocco but the complexity of the purchase process puts many investors off!

Morocco Property Investment Introduction
The real estate market in Morocco presents property investors with an emerging market within an emerging market hot opportunity.