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12/04/2007
Morocco continues to be a hot spot for investors all over the globe. Nubricks offer six reasons why investors are flocking to the country...
1. Morocco is cheaper than neighbouring Spain
Property prices in Morocco are 50% of those in popular European property buying hotspots such as Spain, France and Italy. What Morocco currently lacks in significant infrastructure it makes up for with attractive lower costs of living given 1 euro = 10 Dirhams approx, you get a lot for your money.
Prices in southern Spain in particular are very high averaging out at nearly 2000 euros per square metre compared to Morocco where one bedroom apartment prices start from as little as 800 euros a square metre.
2. Plan Azure Vision 2010 boosts investment potential
The Plan Azure is part of King Mohammed 2010 Vision which should see some 10 billion euros allocated to bring Morocco’s tourism up to ‘premium’ standards. The aim is to attract 10 million tourist visitors a year by 2010 with the knock-on effect being an increased demand for hotel and holiday accommodation.
The Plan Azure centres on six tourist resorts which focus on encouraging local tourism and creating locations which will have long-term tourist appeal. These investment areas together with a package of investments to deliver infrastructure upgrades with new ports, new regional airports, motorway construction, high speed rail links and even a plan to build a tunnel under the sea linking Morocco and Spain, should over the next few years, see any buy to let property investors sitting on lucrative real estate in addition to rise demand for rental property.
3. Budget Airlines bring in more paying tourists
Since the 1st Jan 2006 an open skies policy has been in effect in Morocco and the low cost airlines have flooding in, a strong sign of a country on the up. Less than 3 hours flying time from London and other major European cities, you can now fly to Marrakech for under £70 with easyJet, and Ryanair European hubs will be bases to develop low-cost air access over the next five years.
As the cost and accessibility of travel to Morocco improves so too should tourist numbers, again creating a healthy demand for accommodation close to holiday amenities. Figures from Morocco’s Ministry of Tourism show the industry reached a new high in 2006 with some 6 million tourists visiting Morocco compared to 4.4 million in 2002, a direct impact of increased flights and greater awareness of Morocco as a mainstream holiday destination.
4. The Moroccan Economy is healthy and stable
In 2006 the Gross domestic Product (GDP) of Morocco stood at 8%, up on the previous year due to good rainfall. In the 80’s the Moroccan government implemented many economic reforms, which have been supported by the IMF and the World Bank.
Many of these reforms such as local stock market modernisation have allowed Morocco to trade with the EU and USA. Changes to taxation and banking systems as well as improved credit availability have contributed to the westernisation of its property market. Today 70% mortgages are available to finance purchase of property in Morocco.
5. The perfect holiday destination
There are many factors blend to create the perfect holiday destination and Morocco has it. It offers the right mix of exotic appeal that travellers wanting something ‘different’ are looking for.
The lure of celebrity gives Morocco more appeal as the latest celebrity ‘hot spot’ with the high profile Beckhams, Jude Law, George Clooney and Brad Pitt all having holidayed there and puts Morocco into the media spotlight helping showcase the country’s tourism offerings. The added advantage is also the ability to enjoy a luxury lifestyle courtesy of Morocco’s low cost of living.
Buyers are already drawn by the thousands of pure sandy beaches, a rich culture, fascinating places to explore and spectacular scenery but the new sporting facilities, lush golf courses, and leisure options resorts such as Mediterrania Saidia are set to enjoy will put it on par with many world class destinations and give Morocco its wow factor. Morocco’s greatest asset however remains it’s year round season.
From January to December you can enjoy warm, sunny days with little rainfall. A Mediterranean climate ensures a long rental season, great news for buyers wanting to maximise the rental potential of their investment.
6. Attractive Taxes for investment property owners
By fostering a tax regime sympathetic to overseas investors Morocco has made itself makes a highly attractive prospect for purchasers of investment property in Morocco due to the added financial benefits. Low annual property taxes and exoneration from certain taxes for a set period of time should increase rental yields overall.
Easy repatriation of investments in the future ensures buyer confidence and a significant reduction on property rental tax, exemption on capital gains after ten years and 0% Inheritance tax are all strong draws. For UK investors, there is also the ‘double taxation treaty’ between Morocco and the UK meaning where tax is due, you will only pay it once.
Click below to view property in Morocco
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