Morocco property market

Star Gazing

Morocco is currently demanding a great deal of media interest due to the large number of the world's wealthy; include film stars and sports heroes, frequenting the country. Richard Branson, the Rolling Stones and Malcolm Forbes have purchased property in Morocco. Moroccan 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 is not surprising that Morocco is widely tipped to become a new elite holiday destination and, in certain areas, a luxury playground for the wealthy along with locations like Puerto Banus, Marbella, Monaco and St Tropez.

Upon completion of construction of the many new facilities that Morocco is embarking upon: luxurious living accommodation; new road; new marinas and ports; it is expected that property prices will be far higher than investors can purchase at present. The resorts are expected to attract vast numbers of tourists on short term holidays, generating excellent rental yields for the investors who own these properties.

Low Cost

Property prices are significantly lower in Morocco than other resorts. Extremely spacious and high specification apartments and villas can be up to 50% cheaper than the equivalents elsewhere in Europe. The low cost of living also allows the investor or homebuyer to experience a luxury lifestyle for little expense.

Capital Growth Predictions

There is notary supervised property registration, similar to France or Spain. Capital is simple to repatriate if you sell in the future and the potential for capital gain is high, with 15% growth in property prices during 2006.

Rental Yield Predictions

Rental income from Morocco-based property is of great interest to investors as good rental yields. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved during the peak season months alone. Peak season months are classed as June through to September and rental based on a two bedroom 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 accommodation, this figure is expected to grow meaning even larger occupancy levels for investors and even potential growth in rental prices as demand increases

Morocco currently attracts some 6.5 million international tourists per annum, the majority being French and Spanish. Over 40% of the international tourists go to Agadir, the main beach resort and 30% go to Marrakech, where cultural tourism in this internationally known destination is the main attractor.

As well as sun, sea and sand holidays and cultural tourism, Morocco is also increasingly attracting those wanting to play sport or take part in adventure tourism. There are currently eighteen golf courses and facilities for tennis, riding; trekking, desert safaris and hang gliding are all on the increase.

Climate

Morocco's climate varies from area to area. The coast has a warm Mediterranean climate, tempered on the eastern coast by southwest trade winds. Inland areas have a hotter, drier, continental climate. In the south of the country, the weather is very hot and dry throughout most of the year with the nights coolest in the months of December and January. Rain falls from November to March in coastal areas. Mostly dry with high temperatures in summer. Cooler climate in the mountains. Marrakech and Agadir enjoy an average temperature of 21°C (70°F) in the winter.

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