The scenic beauty, unique location, European feel, coupled with year-round tropical weather is Morocco’s ticket to fame as a tourist destination. Now, with the government undertaking extensive infrastructure developmental activities and promoting foreign investment in real estate, there is no better time than present to invest in Moroccan real estate.
Why the sudden rise in interest?
There are various reasons for Morocco’s sudden spurt in real estate market. The booming economy has given the local government an impetus to revamp the country’s infrastructure. This is not only boosting tourism in general, but also helping in persuading tourists to buy vacation property.
The governmental backing in the real estate scene has brought the much-needed feeling of security for overseas investors. Together with tax exemptions and other benefits offered to foreign nationals, it is a win-win situation for all concerned.
The price is the prime attraction for overseas investors. The country’s beachfront providing the same atmosphere as any European beach resort, it is natural that there is interest in the property market. Morocco’s advantage is its low real estate prices compared to that of European resorts, which are beyond the reach of many investors.
Is it profitable?
Majority of property investors in Morocco purchase it for letting it out as vacation rentals. With the government allowing tax waiver on rental amount for the first five years, this is a lucrative proposition for investors. Not only do they get a chance to stay in one of the best beach resorts in the world for fraction of the cost as anywhere else by owning the property, they also make profit from the deal by renting it out to other tourists when they are not occupying the property.
The Moroccan King Mohammed, the driving force behind these developmental activities, has done much to attract foreign investment for development as well. Reputed players from the UAE have already invested billions in the country’s developmental schemes. The King’s pet project Vision 2010 is aimed at bringing in 10 million tourists to the country each year.
Is the interest sustainable?
The growth in tourism will help in furthering the real estate boom. As the increased number of tourists will require more accommodation, this is the right time to invest in vacation property in Morocco. Morocco’s’ free market policy is immensely helpful in money transfer as well.
Another advantage of Moroccan property market is the easy mortgage facility offered to foreign nationals by local financial institutions. Both Moroccan banks and private lenders are happy to lend money to overseas customers on complying with some simple and easy-to-satisfy conditions. This provision makes it possible for tourists who do not have sufficient funds to purchase vacation property and visit the country year after year.
The property registration procedures are similar to that of many European countries like neighboring Spain and France. Moroccan government has implemented laws to make the purchase safe and foolproof for overseas investors. Notary supervision of transaction is compulsory to eliminate fraudulent practices.
Filed Under: Real Estate Tips