The year 2005 saw a new trend in Morocco. Over half of the huge tourist influx were British and such was their experience that many of them decided to purchase either modern apartments or villas or traditional houses (dars or riads) in Marrakech and to a lesser extent the medina of Fez. This has lead to an estimated fifty per cent increase in prices across the board.
In the case of Fez this has a downside in that many medina houses are now unaffordable for local people. However it is not expected that the influx will be such as to create the kinds of problems seen in Marrakech which now has a large population of foreigners who enjoy little interaction with the local inhabitants.
At the top end of the Moroccan property market there are also some major developments. Yesterday saw the start of the first phase of the "Gateway to Morocco" project, being undertaken by the Dubai based Gulf Finance House (GFH. ). The project is estimated to be worth $1.4 billion (USD).
The first phase of the project comprises Royal Ranches Marrakech and the Royal Resort in Tangiers.
According to a report in the the Gulf News, GFH and the walis of Tangiers and Marrakech signed an agreement in July to develop the first phase of the Gateway to Morocco project in the presence of King Mohammad VI. This significant initiative marked the entry of GFH into Morocco as a key partner working towards the socio-economic development of the kingdom.
Abdul Rahman Al Jasmi, deputy CEO of GFH and deputy chairman of Royal Resort Cap Malabata and Royal Ranches said: "The Moroccan economy is experiencing a noteworthy growth as a result of the enthusiasm and continued efforts demonstrated by the Moroccan leadership. Through this support, Morocco has been able to play a bigger part regionally as well as globally.
"Furthermore, Morocco has been the first amongst the Arab countries to take a proactive role towards economic freedom and privatisation. It has effectively made its presence on the global economic scenario through several joint agreements and partnerships including the World Trade Organisation (WTO) and the free trade agreement with the United States."
Tangiers has also witnessed a real estate boom due to healthy influx of foreigners and tourists. The city is leading the development front for the northern area cities with the execution of big infrastructure projects such as the massive Mediterranean port, the free trade industrial and commercial zones and the roads network. Also, the city is known for its natural beauty where its highland provides a meeting point for the Mediterranean and the Atlantic Ocean.
More than several GCC and international companies have invested a total of $20 billion in various real estate and tourism projects in Morocco.
This will strengthen the capacity of Moroccan hotels to absorb 10 million tourists expected by 2010.
Tags: Morocco Fes, Maghreb news
2 comments:
I don't think the British experience "was such" that they were inspired to buy property because they love Morocco - they are practiced speculators who move in, take over and yes, close the locals out of the market.
It's true that Morocco is becoming very attractive for foreign investment. Here are some reasons for this boom:
* Property prices are up to 60% cheaper than similar European Resorts.
* Morocco has a much lower cost of living compared to other European resorts.
* Morocco is a property hot spot and the best by far in comparison to other emerging property markets worldwide.
* Morocco is only 3 hours from London
* No rental tax for 5 years.
* Capital gains tax is 20% on profits over �60,000 - After 5 years that goes down to 10% and after 10 years there is no capital gains tax as it is rated at 0%.
* Zero inheritance tax for property left to family
* The Open Skies agreement which started in Morocco in January 2007 has opened the country with low cost airlines including Easyjet, Thomson, GB Airways, Atlas Blue and Ryan Air flying to Morocco.
Regards
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