Pros and Cons of Investing In Moroccan Real Estate
The last few years witnessed the emergence of Morocco as a prime tourist destination favored by world tourists. Its location, European atmosphere and affordable rates are propelling the tourism industry to never-before heights.
Why this sudden interest?
The Moroccan government with the full backing of King Mohammed has launched Vision 2010 to boost the tourist inflow to 10 million per year. The entire infrastructure is being revamped to elevate it to international standards and to support the tourist influx. Airports, motorways, railway stations and port are being built/rebuilt to make travel faster and easier for tourists coming to enjoy the country’s perfect temperate climate.
Accommodation for tourists is given ample importance by government. The government-sponsored real estate projects are coming up along the beachfront to meet this need. These projects are the best buy for property investors from abroad.
Advantages of investing in Morocco
Overseas investors are scrambling to invest in vacation properties in Morocco. This is an ideal investment opportunity, as it can bring down vacationing expense. These properties also serve as regular sources of income by letting it out as vacation rental, thus providing huge profits in the process.
The attractive opportunity is prompting many to invest in a second holiday home in Morocco. The easy and trouble-free mortgage, both from Moroccan financial institutions and from home country, is immensely helpful in this regard. Moroccan banks and private lenders give up to 70% of property value for overseas investors.
The government is luring foreign investors with policy changes like tax exemption for the first five years on rental income. With property costing much less than European beachfront properties in France, Spain and Italy and occupancy rate as high as 85% during high seasons, the property investment is a surefire winner. The Moroccan weather staying sunny year-round, almost 300 days of the year are tourist-worthy.
One of the most laudable features of Morocco’s real estate scene is its relative transparency in transaction. The government has implemented policy changes to avoid fraudulent activities and to make investments secure. One of the governmental regulations in this regard is to have a notary supervise the entire purchase procedure.
Positive feedback from past investors
All those who have invested in Moroccan real estate until now have reaped rich rewards for their foresight. This track record of pioneers is the best advertisement for the Moroccan real estate investment scene. And it is working well by attracting more investors from abroad, especially Europe.
The tourist flow to the nation is estimated to increase at the rate of 30%, after the complete rebuilding of country’s infrastructure. However, once the developmental activities get over, the real estate prices are bound to soar sky-high. So, for investors, the present moment is the right time for property purchase.
However, to reap rich dividends from property investment, it is imperative to buy property that is attractive from the tourist perspective. Some of the most popular locations are Tangier, Marrakesh, Asilah, Rabat and Fez.
Filed Under: Real Estate Tips
