Author: Neil Maxwell Keys Added: October 16, 2008
The interest in buying property in Morocco has been partly due to the widespread media coverage that the area has been receiving recently because of the Vision 2010 economic development plans. The emergence of Morocco's property and tourism market has ensured healthy investment opportunities. TV and newspapers have cottoned on to this demand and have produced programmes and created coverage to show viewers how, where and when to buy Moroccan property. Currently 1 in 5 African properties owned by British buyers are in Morocco, proving that the nation is of serious interest to UK based investors - whether it's an investment property, a holiday home in the sun, or simply a new home overseas they are looking for. In terms of the numbers of Brits already having invested in Moroccan property, this figure is likely to increase as a steady flow of investment continues from UK investors who are betting on a market which is already producing annual capital appreciation reported to be in the region of between 18% and 28%, not to mention the potential for greater rental yields because according to the World Travel and Tourism Council, tourism in Morocco is set to increase by at least 3 - 5% per annum between now and 2016. And the British are not the only ones who have spotted the potential of the Moroccan property market and to be taken in by its appeal; according to The Observer newspaper so too are the Spanish, French and Italian buyers. French is a common language in Morocco, due to the long protectorate that France had over the nation. For this reason, the French have flocked to Morocco, finding the Costa Vista and the Mediterranean Rivera region similar to their own. The stunningly beautiful, historically and culturally rich region of Costa Vista is one of the most attractive parts of Morocco - both literally and in terms of the developing opportunity it offers investment and lifestyle home buyers. According to local expert opinion, it is also the top centre for expatriate inward migration in Morocco and where a large concentration of brand new property development interest has centred. Located directly opposite the Costa del Sol and separated from Spain by just a thin stretch of the Mediterranean Sea, it is impossible not to draw comparisons between the Costa Vista and the Costa del Sol. Both offer up a fabulous climate, a stunning landscape, pristine beaches and a fantastically laidback lifestyle, but this is where the positive comparisons end. Whilst the Costa del Sol is suffering its worst winter sun season according to Spain's Association of Hoteliers, the Costa Vista and Morocco enjoyed the highest visitor numbers last year for forty years. Additionally, the Sunday Herald revealed recently that property prices in parts of the Costa del Sol have declined, whereas, according to The Times, some investors have benefited from up to a doubling of property prices in Morocco. It's of little surprise therefore that the Costa Vista is being heralded as the 'next big thing' in the world of overseas property investment. MOROCCO: BUYERS' GUIDE * Average summer temperature = 38°c.
* Purchase tax 1.1% or purchase price.
* Government registration fee 3.9%.
* Legal fees 0.5%.
* Estate agent commission 2.5%.
* Owners pay annual property tax similar to UK council tax.
* Rental income taxed at 13.5%.
Rental income is free from tax for the first 5 years.
* 20% Capital Gains Tax if sold within 5 years, 10% to 10 years, 0% thereafter.
* Casablanca and Marrakech buying prices tend to average around €2,000 per square meter.
* Normal local rental market yields around 6% (Rabat, Casablanca and Marrakech - 100m² = 7.2%, 150m² = 6%, 200m² = 6.55%).
* Property prices increase by as much as 40% in prime areas.
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