Moroccan Real Estate Boom Spurred By Flourishing Economy
Morocco is blessed with abundant natural beauty and centralized global positioning to make it a favorite tourist destination among world tourists. However, until the country’s economy showed signs of revival, the real estate market remained forgotten.
Moroccan economy sees windfall growth
The country registered unprecedented economic growth from 2006. Until 2005, the growth rate crawled in the range of 3%. During 2006, this jumped to an astounding 7.3%. This growth is mostly attributed to favorable weather conditions, which aided the country’s main income grosser, the agriculture sector.
Skeptics point out that the growth is difficult to sustain, as it is weather-dependent. As global warming is ruining agriculture in different parts of the world and making weather forecast difficult, placing trust on favorable weather for sustained economic boom is nothing but absurd.
Government bent on exploiting the economy boom
However, the Moroccan government is not sitting on its laurels. It is injecting millions into country’s infrastructure development projects. This is expected to bring in more tourists and help boost the tourism industry. The government is pushing tourism sector’s place in the economy, which in turn will help sustain the country’s economic growth even when its agriculture fails.
Another initiative of Moroccan government is to attract foreign investment to fund the infrastructure projects. Already many big names in the field such as EMAAR group of UAE and Dubai Holdings have entered the fray. Their presence not only adds to the authenticity of the endeavor, but also helps in completing the projects on time, which is important to enhance the country’s image worldwide.
To lure foreign investments to Morocco, the government has made various regions of the country as ‘International Free Trade Zones’. This is useful from the investor viewpoint, as they are exempt from certain taxes. The seriousness of the Moroccan government in the development of the country is very much evident in the way things are progressing.
The entire country is given a makeover with low-cost houses replacing slums dwellings. New electricity grids are being laid to bring power to the rural areas. The sudden spurt in car sales and mortgages point to the undeniable fact that standard of living in this small country is rising steadily.
Implications of new developments on economy
Along with the major revamp of country’s image, its economy is also recovering. Morocco’s foreign debt has halved in the past decade to improve its status among the world countries. The improvement is also visible in the governmental functioning and public sector companies.
One of Moroccan economy’s weak points is the polarization in its society. The unequal distribution of wealth is being addressed by raising employment opportunities, among other initiatives. Despite this, much need to be done to level the field.
Moroccan government is doling out many sops to foreign nationals to invest in the real estate here. Exemption from various taxes and other lucrative benefits are being offered. The flourishing tourism industry is providing the remaining impetus for the overseas investors.
Filed Under: Real Estate Tips
