Morocco Real Estate News

The High Commission for Planning (HCP) has stated that the Moroccan economy’s GDP grew 3.5% in the first quarter of the year 2010, against 2.2% a year earlier. This development is a result of an increase of 5.4% in non-agricultural GDP.

HCP has said that the agricultural value added declined by 8.6% in volume. All the non-agricultural activities recorded an improvement compared to the first quarter of 2009. Morocco’s industrial production index increased 0.6% during the first quarter of 2010 compared to the same period last year.

Meanwhile, The African Development Bank (AfDB) has approved a loan of 100 million Euros to finance the fourth phase of Morocco’s Public Administration Reform Support Programme (PARSP IV). The statement from the bank said that the programme’s objective is to promote strong economic growth and sustainable development, thereby strengthening the economy’s competitiveness while ensuring medium-term macro-economic viability. These are expected to boost the property market in the country.

Investors are able to take advantage of competitive deals for properties something which is further enhanced by the cheap labor and materials in Morocco making renovating an attractive choice for many. Individuals looking to buy properties in the country will be pleased by news that visitor numbers rose by six per cent during 2009 and government officials are already predicting further rises of around ten per cent this year, Reuters reported.

Popularity: 1% [?]

Marriot Hotel Group has displayed its faith in Morocco region by announcing that it is planning to build another 40 hotels in the Middle East/Africa region in the next five years.

Those who have invested in rental properties in Morocco could see a rise in the number of tourists visiting the destination this year. There is a massive potential for, not only tourism growth but travel growth, in terms of business travel and short intercontinental and even national breaks. The plans by the Marriot Hotel Group are a testament to the development and rising wealth within the region.

The established markets were nearly all in a deep recession; meanwhile the Moroccan economy was still growing strongly (5% GDP growth in 2009) on the back of a bumper crop season and construction. Because of this, development continued; with the internal housing market remaining strong even the luxury developments aimed at foreigners continued to spring up. Booming economy means increasing demand for housing; an increasingly healthy construction industry, property market and all round growth.

In more good news for investors, Buy Association said that capital gains of up to 35 per cent are possible in Morocco. The portal noted that the government of the country has been taking action to help boost the economy and property sector, including providing financial incentives for Moroccan expats, funding the construction and renovation of roads, airports and also engaged in slum clearance projects.

Popularity: 3% [?]

The Food Agriculture Organization (FAO) will provide technical support to Morocco’s forest preservation programme and it also agreed to cooperate in agriculture and fisheries.

For this purpose, the two parties had also signed an agreement worth USD 994,000 Morocco’s forest preservation programme which covers a period of four years (2010-2014). They also signed two agreements worth USD 669,000 for promoting agriculture and boosting the Kingdom’s inshore fishing fleet. Both agreements aim at ensuring good governance and management in terms of information flow and forest protection.

Morocco’s Ambassador to the United Nations in Geneva, Omar Hilale said that promoting business climate and Foreign Direct Investments are among Morocco’s top priorities. Hilale said that Morocco is committed to strengthening its economy’s competitiveness, recalling that the country has liberalized several key economic sectors.

Meanwhile, the tenth real estate and housing exhibition “Logimmo” was organized on June 3-6 at the Casablanca International Fair.

The organizers said that fair is an opportunity to inform visitors about the novelties in the Moroccan real estate sector and exchange information. Nearly 50 exhibitors participated in the event, coming from the different regions of the country. The exhibitors included organizations offering housing and real estate loans and the main property developers, as well as insurance companies.

Popularity: 3% [?]

The revenue generated by Morocco’s tourist industry is increasing and the country could see a rise in the number of tourists visiting the destination this year, it has been suggested.

According to Travelzest’s Best of Morocco, the country is the ideal spot for individuals who are looking to go on a budget break, with places like Marrakech in particular offering good value for money.

Figures from the holiday company TUI, an Adventure Travel Online Magazine show that Morocco could receive a tourism boost from adventure travelers this summer. They said that adventure travel is a huge market for UK companies, providing over 400,000 passengers per year. Adventure Travel is advising that those looking to mix their adventure holiday with culture head to Morocco this summer.

Alun Davies, editor at Adventure Travel Online Magazine said that Morocco might be good because people are going to be guaranteed the weather, it’s only two and a half hours flight away and there are some fantastic adventure type holidays within a totally different culture. Those who have invested in Buy-To-Let property in Morocco could see “expansion in the adventure travel sector.”

In related news, ABTA - The Travel Association recently predicted that Morocco will be a strong destination for travelers in 2010, as investment in infrastructure and transport will attract holidaymakers looking for high standards at lower costs.

Popularity: 5% [?]

Many investors in Moroccan property market are choosing to look away from established holiday resorts and are starting to look away from the highly developed tourist spots and consider purchasing in nearby villages.

The vast majority of tourists and residents come to Morocco to relax on the beaches and in the coastal resorts. The fabulous climate all through the year and its picture perfect beaches has been highlighted as the main reasons for its popularity among holidaymakers, allowing them to spend the winter months relaxing on a beach. The increase in tourism drives the real estate market in Morocco and has led to increased property values in established coastal resorts.

Purchasing property in villages nearby resorts offer several benefits to foreign investors, such as cheaper property prices and easy access to the main resorts. There are still lots of unspoilt villages dotted along the coast within a short car journey of the larger towns. Properties in those villages could be up to 50% less expensive than similar buildings in the tourist areas.

UK-based newspaper the Independent said that in recent years, authorities in Morocco have reacted accordingly by introducing development programmes that has seen the development of many new properties in popular areas. Morocco’s growing popularity has therefore seen these houses become subject to strong demand, thereby pushing up prices in tourist hotspots.

Marrakesh was said to have seen the bulk of the new developments, along with many coastal towns and cities.

Popularity: 4% [?]

The demographics of Morocco’s property market could be changing as more people are attracted by the prospect of second homes in the sun as houses in Morocco are much cheaper than those in nearby Mediterranean nations.

According to the Independent, Property buyers are benefiting from high rate of capital appreciation, as current economic crisis is not inhibiting its economic growth .The publication added that more Brits are investing in Morocco than ever before and are experiencing capital gains of 20% per year.

The ever-increasing demand has led to a number of luxury and up market developments springing up across Morocco. The growing economy and flourishing housing market is leading to house price inflation in many areas. Consequently, demand means that there will be fewer bargain properties available in the future, whereas early investors can enjoy a high rate of capital appreciation.

International property agent Knight Frank has painted a positive picture for property investment in Morocco, claiming it offers a low-risk environment. And with comparatively low prices in comparison with destinations in Europe, the North African country can still expect appreciation to occur within the market.

Rental property investors in the country will be pleased by news that visitor numbers rose by six per cent during 2009 and government officials are already predicting further rises of around ten per cent this year, Reuters reported.

Popularity: 5% [?]

An increase in tourism numbers has been observed in Morocco, according to Tourism Minister Yassir Zenagui.

In an interview to the Dubai-based TV channel “Al Arabiya”, the minister said that Tourism receipts in Morocco increased 12% in the year to March and this rise is due to “the quality of Moroccan hotel services and products and the efficiency of the ministry’s strategy.” He added that the country expects this number to reach some 9.4 million in 2010.

Morocco’s tourism minister is confident that the global economic turmoil has no negative impact on perceptions of the North African country as a viable holiday location; Mr. Zenagui said that the number of tourists increased 16% in the first quarter of the year. This suggests that property investment in the country could be profitable as demand for rented accommodation from tourists is likely to remain high.

The Global Property Guide believes that this tourism boom could have a knock-on effect on the country’s house prices, as these could heighten interest in certain areas. Particularly, it is predicting a surge of interest among overseas property buyers, to the point where the market could become more popular than some European countries.

The portal commented: “It is difficult not to suspect that Morocco’s success in attracting both summering and settling Europeans will eventually outpace that of Turkey.”

Meanwhile, Moroccan airports reopened to resume their normal operations. The Transport Ministry pointed out that the volcanic ash cloud will disperse from the Moroccan airspace in the few coming hours, referring to meteorological data.

Popularity: 6% [?]

L’Amandier is a luxury development set amidst the tranquil foothills of the Atlas Mountains, an hour outside Marrakech in the Ouirgane valley. This is a popular tourist destination for those seeking both relaxing and adventurous pursuits like Trekking, skiing, swimming, mountain biking and horse riding.

Less than an hour’s drive from Marrakech airport, The exquisite development of only 16 spacious private villas, a large swimming pool, a tennis court and gardens peppered with Bougainvillea, almond and citrus trees rest on a raised plateau, with a stunning 360-degree view of the snow capped Atlas Mountains and foothills below.

L’Amandier is being developed as a low-density community with building taking place on only 5% of the available land. The need for energy inefficient air-con is reduced as the villas have been planned to naturally ventilate. Homeowners will be provided with recycling facilities and encouraged to sort their waste. A local project to implement an infrastructure and system for waste collection and recycling has been initiated by the developer.

Indigenous materials are used during construction wherever possible, which includes rock and pebbles from the local riverbeds and all internal doors are made from local timber. All fixtures and finishes are sourced locally and local marble is used in kitchens and bathrooms, all lights are hand made or constructed on site. Tadelakt (the distinctive local plaster-type finish for interior walls) is mixed on site, using locally imported ingredients.

According to the Times reports, L’Amandier, a new development in the Ouirgane valley is attracting local and foreign interest. Meanwhile, the Sunday Times has reported that the latest development in Morocco in the foothills of the Atlas Mountains when compared with equivalent properties on the plains just outside Marrakech represents 20% below the market value.

“There is a real sense of growth, without detracting from the magic of the place, ” the publication adds.

FOR SALE: 16 two- and three-bedroom luxury eco-villas

PRICE: From £319,000.

BUILD STATUS: phase one began November 2008; completion is due 2011.

Popularity: 7% [?]

The Moroccan investment development agency has opened an office in Madrid to encourage Spanish businessmen to invest in Morocco.

Fathallah Sijelmassi, the director of the agency said that the opening of the office aims at proximity, that is to say getting closer to the Spanish business arena. Recalling that over 1000 companies are currently based in Morocco, Sijelmassi said that Morocco’s government believes that strengthening the economy, the infrastructural improvements and incentives to foreign investors would attract more foreign investors to the country.

Highlighting Moroccan business opportunities and incentives, he stressed that Spanish companies can produce more cheaply in Morocco and it constitutes an alternative for increasing their market share. He said that Spain would become one of the largest direct investors in Morocco in the next few years.

According to the Telegraph report, Property values in Morocco are continuing to grow as a result of foreign investment. Property values in some parts of Morocco have risen by as much as 20% this year. The publication also stated that house prices in areas such as Marrakesh were “soaring” due to the influx of overseas property buyers.

Morocco’s popularity as a holiday destination was also highlighted by the newspaper, as this means that rental accommodation is in high demand among tourists.

Commenting on the country, the Telegraph said: “Morocco is just about as exotic as you can get on a short-haul flight from Britain.”

Popularity: 6% [?]

People who plan to invest in a Buy-to-let property overseas have been advised to consider purchasing in Morocco as Holidaymakers from all over Europe are increasingly choosing to spend their leisure time in Morocco.

Speaking to the Maghreb Arabe Presse, Moroccan tourism minister said the overall number of visitors rose by 13 per cent and he revealed that many of these people had come from various European countries. Meanwhile, the country was found to have attracted a large number ofFrench, Spaniards Belgians, Germans, Italians and Britons.

Commenting on Morocco’s tourist sector, Mr. Boussaid said the recent growth was proving to be a major economic boost. He stated that the increase in visitor numbers was leading to the creation of new jobs and contributing a significant amount to the GDP.

According to the travel association ABTA, Morocco will be a ‘big winner’ in terms of the numbers of holidaymakers it receives this year. Changes in the air duty being charged to passengers flying to North Africa were reduced in 2009 from £40 to £11 by the European Union. It is expected that this will make nations such as Morocco and Tunisia more affordable as short haul destinations.

Frances Tuke, spokesperson for ABTA, said: “The big winners will Non-Euro zone again and we think Morocco and Tunisia because actually the air passenger duty change has actually positively impacted on those destinations.”

Meanwhile, the reduced exchange rates in the Euro zone are also expected to boost Morocco’s popularity as a holiday destination, according to Takethefamily.com.

Popularity: 7% [?]