Moroccan Property Market has Sustainable Growth

According to CB Richard Ellis the property market in Morocco has sustainable growth for a number of years to come and the managing director, Karim Beqqali, feels the country has been successful in attracting a large amount of investment into holiday homes.

The property market in Morocco has been affected in the past by the global economic downturn, and this had a severe impact on the second home market which had previously been buoyant.

However it has been largely untouched by the recent unrest in parts of the Middle East with most analysts feeling it's far enough away to be unaffected by these problems.

Good economic growth in Morocco has resulted in a healthy local market, and a rapidly expanding middle-class is giving greater impetus not only to the residential property market but also the commercial property market.

Morocco plans to promote coastal tourism through six new coastal resorts which are collectively called the Azur Plan. These results will eventually create more than 100,000 beds of which 73,000 will be hotel beds.

The plan was implemented before the global economic crisis, and since then some international developers have had to transfer projects to local operators.

At the moment Marrakesh is the primary tourist destination in Morocco and the city has managed to attract many world-class hotel brands and has over 5.5 million overnight stays year. However the property markets within the other three major cities of Tangiers, Casablanca and Rabat have also experienced strong growth in recent years.

There are no restrictions for overseas buyers and Morocco is easily accessible from a number of major European cities. Prices have declined slightly in the wake of the economic crisis, but now seem to have stabilised.

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Morocco Property Proving Profitable for Overseas Investors

Well, I hvae said it before and I will say it again: the worst of the downturn on overseas property must be over because the British national press is picking up its coverage of overseas property markets massively. Nothing said this to me more than when the Telegraph ran a story on Morocco property yesterday.

Morocco is an example of an overseas property market that we should all be holding up. During the boom, Morocco was one of the fastest rising stars. Overseas buyers were making investments in the country based on massive potential for strong rental yields and capital growth.

The great thing is that Morocco has lived up to its forecasts. The economy has continued to grow, and what's more the economic growth has been partly based on continued growth in the construction sector (though it is mostly agriculture). The International Monetary Fund is forecasting 4.4% growth this year.

Not many countries have managed to continue growing economically throughout the downturn, fewer still have seen growth in their construction sectors. But perhaps the most important thing, is that this has led to continued growth in Moroccan property prices throughout the downturn.

The Telegraph has highlighted the popularity of Morocco's traditional riads with British buyers, who buy them cheap and then restore them to their former glory. But the most inreresting part of the article for me, was the fact that the lady mentioned in the article is renting out rooms for £125 - £150 per night.

This is a testament to the popularity of Morocco as a tourism destination. But more importantly, given the low prices of property currently found in Morocco it gives an idea as to what kind of rental yields you can get. In my opinion the off plan resort properties have the potential to be especially profitable, but as always do your research at length.

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