Détails Blog

Description of the blog

The ascension of King Mohammed IV to the throne of Morocco in 1999 triggered a series of events that allowed Moroccan real estate to become a target for real estate investors around the world.

An ambitious reformer, King Mohammed is behind the Vision 2010 plan, which aims to increase the number of visitors to 10 million per year by 2010, and to build 250,000 new hotel rooms.

So far, it seems to be working. In 2007, 7.4 million foreign tourists visited Morocco and this influx of visitors prompted foreign investors, including thousands of Britons, to buy villas and apartments in the coastal areas expected to develop within the framework of Vision 2010.

Known as Plan Azur, this part of King Mohammed's strategy calls for the construction of six new seaside resorts in areas such as Plage Blanche and Lixux. Marrakech, Tangier and Agadir are also popular on the Atlantic coast.

Investors are also increasingly interested in real estate in Fez, the country's third city, where prices remain low compared to real estate in Marrakech, for example.

In Morocco, economic growth increased by 6.5% in the second quarter of 2008, but like in most world economies, the country is going through a more difficult period.

Officials say the number of visitors in 2008 is expected to be lower than in 2007, as the credit crunch and declining disposable income are impacting tourism.

These factors also affect the real estate market, but the fact that the pace of development is under control should mean that, unlike its close neighbor, Spain, Morocco will not suffer from an oversupply.

Once the dust has settled on the global economic slowdown, Morocco could also take advantage of the fact that there remains a low-cost economy: Westerners can spend their holidays here cheaply and expatriates enjoy the low cost of living in the country.

Rental yields in Morocco are currently in the range of 6.5 to 8%, which may seem modest compared to certain emerging markets, but which should also be sustainable in the medium term.

Mortgages with a loan of up to 70% are available to foreigners in Morocco, although banks have become more cautious in the face of the credit crunch.

Morocco property prices rose 20% in 2006 and 15% in 2007. Figures for 2008 are not yet available, although growth rates have probably declined slightly.