Morocco’s economy shows positive growth in 2007
Magharebia.com cited official government figures during the final quarter of 2007 and reported that the Morocco economy is quite strong and gross domestic product (GDP) went up 2.1 per cent and is lesser than that in 2006 but still it showed positive step up in the economy. This growth in economy attracts overseas property purchasers to Morocco.
Morocco enjoys financial solidity and economic reforms are definitely on the Government’s agenda. The Moroccan Government has provided a number of incentives like free trade zones and cheaper land acquisition to persuade foreigners to invest. The Investment Promotion and Protection Agreement and Double Taxation Agreement allow for the protection of future and existing investments. The government intends investing USD 12bn in tourism industry to attract 10 million holidaymakers and increase revenue to USD 7.0bn per year.
Morocco has maintained low inflation rates over the past decade due to a foreign exchange rate anchor and exceptional monetary policy. The country maintains surplus current account and foreign exchange reserves are healthy, amounting to around $15 billion.
The Average return yields for property investment in Morocco range between 8-13%. Homes Overseas Magazine has quoted a capital appreciation of 30% while as a more conservative estimate of 15% growth is expected to be easily achievable. The rental market is strong and Peak-season rental occupancy can be as high as 85%. Apart from the growing economy and low property prices, Morocco’s geographical proximity to Europe, easy accessibility and low- cost of living makes it more attractive for overseas investors.
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