"Morocco is a tree with its roots in Africa and its branches in Europe" - H.M. King HassanII, (1921-1999)

Why Invest in Morocco?

We think that at this time, some foreign real estate markets offer better prospects than the domestic market.  The Moroccan real estate market is one of those and offers a great risk diversification from domestic investments.  Moreover a "0%" inheritance tax, double taxation treaties with Europe, SIPP compatible leaseback schemes make the Moroccan real estate market an important tax planning tool.

The worldwide economic slowdown will undoubtedly affect the Moroccan real estate market, but Morocco has an ace up it's sleeve: a very strong domestic market.  Morocco's relatively closed economy and it's conservative banking system have managed to shield the country from the recession felt in other countries.  With confirmed GDP growth of 5.3% for 2008 and estimates of 3.3% growth for 2009 by the IMF, Morocco is set to outperform many industrialised nations which are predicted to have shrinking GDP's during the same period.

Although foreigners might perceive Morocco as a poor country, there are many wealthy Moroccans keen to invest at home.  Add to that rich Algerian, Libyan and Middle Eastern investors who have considerable appetite for property in Morocco as well as a high demographic growth (2.56 births/woman - est 2008) and one can see why this country has such a strong real estate market.

Other facts: 

• Low property prices compared to Europe. Half the price of equivalent properties in Europe with luxury villas priced at  a quarter of their European equivalents.
• All year round holiday season due to its climate unlike European resorts.  Compare that to the 5 month season on the Black Sea resorts in Bulgaria and you see why we discarded that area immediately.
• Already high occupancy rates due to long holiday season are set to increase due to the "Vision 2010" and  "Plan Azur"
• High Capital Growth: 15% - 30% based on 2006 figures ( 30% quoted by Homes Overseas Magazine).  This growth is set to continue at more sustainable rates of 10% to 15% due to "Vision" and "Plan Azur"
• Huge government backed project (Plan Azur) to attract 10 million visitors by 2010.
• High investment in infrastructure: Part of the "Plan Azur" is the huge investment in infrastructure to build new roads and motorways, train links, airports, tourist resorts, luxury hotels, golf courses, marinas, etc...
• Open Skies policy since Jan 2006 ensures that low cost airlines can service Morocco and thus create competition and lower fares.  A wide array of carriers already service Moroccan destinations and a selection of others plan to open new routes from various European destinations.
• Low cost of living, allowing for a luxury lifestyle on little expense.
• Morocco is the most exotic destination you can reach at only 3 hours flight from most European countries.
• No restrictions on  foreign ownership of land, property or companies, except for agricultural land.
• Double tax treaty with the UK with generous tax advantages to attract investors: 0% inheritance tax to family members, between 0% and 20% capital gains tax, no annual property tax for the first 5 years, no tax on rental income for the first three years, no council tax (taxe urbaine) for the first 5 years and low income tax (80% discount) on foreign pension.
• Morocco is stable politically and economically.  Free market economy.
• Free repatriation of money to the UK when selling a property, provided the investment has been declared to the exchange commission (usually your notary will take care of this). 
• Safe property investment as your property purchase is registered via a Notary (just like in France and Spain).  
• Morocco is  a Sound Economy (according to the IMF – International Monetary Fund) with inflation rate of 4.86% and GDP growth of 5.3% for the year 2008 and a GDP growth prediction of 3.3% for 2009 by the IMF.
• International property developers are investing heavily in Morocco.
• 70% LTV Mortgages for non residents are widely available for the purchase of built property. 
• Healthy local demand for investment property as Moroccans are not yet allowed to invest abroad.
• High demographic growth combined with shortages in the housing stock, will ensure demand for property.
• Morocco has no shortage of cheap labour and the level of craftsmanship is extremely impressive.  This is of course interesting for building projects.
• Planners will only allow quality low density developments, no high rise and overcrowding like on the Costa del Sol or the Black Sea.  This will ensure that the property market growth remains sustainable and that there is no over-supply, thus protecting your investment.

Summary:  Why invest in Morocco?

Compared to European destinations Morocco still enjoys low land, property and labour prices and a cheap the cost of living. Morocco is a stable and safe country and the government is currently modernising its infrastructure, institutions, legal system and the economy in general.

The government has put into action a most ambitious plan (Plan Azur) in order to attract 10 million tourists a year by 2010 and is well on target with confirmed figures of 6.5 million visitors for 2006 and 7.9 million visitors in 2008 (up from 2 million in 2002).  This is set to boost the already high (85%) occupancy rates profiting the buy-to-let market.  Morocco is also an all year round holiday destination that caters for mass tourism, for the more discerning traveller and for luxury tourism.

The French have been active in property investment in Morocco for a few years now but worldwide investors are just discovering the place. 

The above leads us to conclude that Morocco is on a course of sustainable capital growth after a few years of high growth.  Property prices have been rising steadily over the last years but this emerging market is just starting to be noticed by shrewd property investors worldwide, making this the perfect time to invest. 

For a detailed country fact sheet see nation master: http://www.nationmaster.com/country/mo-morocco

or

Country Report by the Oxford Business Group:

http://www.oxfordbusinessgroup.com/publication.asp?country=27

or

CIA World Fact book:

https://www.cia.gov/library/publications/the-world-factbook/geos/mo.html