Property Investment Growth in Morocco - Moroccan Property Capital Growth Predictions

Morocco has already made a name for itself as a new property investment hotspot. Morocco´s luxurious property developments are generally accepted to be of the highest standards available and very competitive prices allow Morocco to boast top quality property in 5 star luxury resorts for a fraction of the price of far less caliber property elsewhere.

Morocco has attracted a great deal of media coverage with a large number of the world’s wealthy, including film stars and sports heroes, having already purchased property here; Richard Branson, Mick Jagger, Malcom Forbes, and even David Beckham have bought property in Morocco.

Widely tipped to become the next elite holiday destination, Morocco property offers to the rest of us similar style to Puerto Banus, Monaco or St. Tropez at significantly lower prices.

When construction of the many new facilities, luxurious living accommodation, as well as new roads, marinas and ports is completed, it is expected property prices will soar. The resorts are set to attract vast numbers of tourists on short-term holidays, generating excellent rental yields for investors of buy-to-let properties.

Capital Growth Predictions

Given all indicting factors, it is inevitable that property prices in Morocco will rise at a rate that will please investors. The growth rate has been quoted at around 30% (Homes Overseas Magazine) while as a more conservative estimate, 15% is expected to be easily achievable.

Rental Yield Predictions

Rental income from Morocco property is also of great interest to investors as good rental yields are achievable from property in the new luxury resorts currently under construction. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved from peak season months alone (June to September) and rental based on a 2 bed apartment costing around €100,000 is expected to be around €2,000 per month.

With the current statistic of 85% rental occupancy during high season and the number of tourists set to grow faster than the amount of available accommodation, this figure is expected to grow to create even higher demand for property. With this will come an increase in rental prices.

Vision 2010

The major catalyst behind the huge growth in Morocco´s tourist industry and the enormous overseas investment into the construction of stunning new luxury property developments is the massive national development plan, Vision 2010, devised by King Mohammed VI in conjunction with the UAE. This project was launched with the purpose of drastically increasing the number of annual tourist visitors to a specific goal of 10 million by the year 2010, This will further boost the Moroccan economy through the creation of some 600,000 new jobs.

Directives of Vision 2010:

1. ”Open Skies” Policy
2. The construction of 6 new coastal resorts (5 on the Atlantic Coast and 1 on the Mediterranean Coast)
3. New motorways to be built and upgraded
4. New regional airports to be built and where possible upgraded
5. Increase and de-regulate incoming flights from all over Europe by introducing an “Open Skies” policy
6. New ports, marinas and high speed trains to be created and implemented
7. To serve the increase in tourist visitors, the government plans new shopping malls, golf courses, beach clubs, equestrian centres, spas which are all designed to promote a 5 star luxury lifestyle

One of the most significant moves to increase tourism is the decision to operate the “Open Skies policy” which makes Morocco far easier for airlines to offer services into Morocco. The promotion of competition among airlines will, in turn, bring down the cost of air travel to Morocco and make traveling to Morocco an easier option for potential tourists worldwide.