home > About Morocco

Info Pack

About Morocco

Population: 33 241 259
Language: Arabic Magribi
Religion: Muslim
Government: Monarchy
Coastline: 1 835 km
Sunshine: Up to 350 days
GDP Growth: 1.7% (2005)

Only a short trip away from Spain and in the same time zone as the UK, Morocco is the perfect place to escape. In this fascinating country, ancient and modern happily co-exist, as tradition mingles with cosmopolitan attitudes. Its natural physical beauty ranges from lovely unspoilt coastlines through scenic mountain landscapes to the dramatic wilderness of the Sahara, and its Mediterranean climate and cultural richness make it a paradise waiting to be discovered.

Morocco is a country surging ahead into the 21st century while still retaining a wealth of tradition and history. Its progressive ruler is actively encouraging foreign investment and is intent on upping the country’s international profile.

It is poised at the beginning of a property and infrastructure development program that should put it firmly on the map for investors and visitors alike. The project, known as 'Vision 2010' aims to increase tourism to 10 million tourists a year by 2010. The country's very competitive prices allow Morocco to boast top quality properties, in 5 star luxury resorts, for a fraction of the price of similar properties in more mature markets.

Menu of topics about Marocco:
  • Investment Potential
  • Capital Growth Predictions
  • Rental Yield Predictions
  • Vision 2010
  • ”Open Skies” Policy
  • The Moroccan Economy
  • 20 Reasons Why to invest in Morocco
  • Questions and Answers
  • View our Moroccan Properties

Investment Potential
Morocco is already making a name for itself as a new property investment hotspot. Morocco´s luxurious property developments are generally accepted to be of the highest standards available and very competitive prices allow Morocco to boast top quality property in 5 star luxury resorts for a fraction of the price of far less caliber property elsewhere.

Morocco has attracted a great deal of media coverage with a large number of the world’s wealthy. Richard Branson, Mick Jagger, Malcom Forbes, and even David Beckham have all purchased property in Morocco. Widely tipped to become the next elite holiday destination, Morocco property offers to the rest of us similar style to Puerto Banus, Monaco or St. Tropez at significantly lower prices.

When construction of the many new facilities, luxurious living accommodation, as well as new roads, marinas and ports is completed, it is expected property prices will soar. The resorts are set to attract vast numbers of tourists on short-term holidays, generating excellent rental yields for investors of buy-to-let properties.

Capital Growth Predictions
Given all indicting factors, it is inevitable that property prices will rise at a rate that will please investors. The growth rate has been quoted at around 30% (Homes Overseas Magazine) while as a more conservative estimate, 15% is expected to be easily achievable.

Rental Yield Predictions

Rental income from Morocco based property is also of great interest to investors as good rental yields are achievable from property in the new luxury resorts currently under construction. It is expected that the rental income achieved from peak season months alone (June to September) based on a 2 bed apartment costing around € 100,000 is expected to be around € 2,000 per month.

With the current statistic of 85% rental occupancy during high season and the number of tourists set to grow faster than the amount of available accommodation, this figure is expected to grow to create even higher demand for property. With this will come an increase in rental prices.

Vision 2010
The major catalyst behind the huge growth in Morocoo´s tourist industry and the enormous overseas investment into the construction of stunning new luxury property developments is the massive national development plan; Vision 2010, devised by King Mohammed VI in conjunction with the UAE. This project was launched with the purpose of drastically increasing the number of annual tourist visitors to a specific goal of 10 million by the year 2010. This will further boost the Moroccan economy through the creation of some 600,000 new jobs. The summary of Vision 2010 is given below:
  • The construction of 6 new coastal resorts (5 on the Atlantic Coast and 1 on the Mediterranean Coast)
  • New motorways to be built and upgraded
  • New regional airports to be built and where possible others upgraded
  • Increase and de-regulate incoming flights from all over Europe by introducing an “Open Skies” policy
  • New ports, marinas, high speed trains to be created and implemented
  • To serve the increase in tourist visitors; the government plans new shopping malls, golf courses, beach clubs, equestrian centres and spas which are all designed to promote a 5 star luxury lifestyle

”Open Skies” Policy
One of the most significant moves to increase tourism is the decision to operate the “Open Skies policy” which makes Morocco far easier for airlines to offer services into the country. The promotion of competition among airlines will, in turn, bring down the cost of air travel to Morocco and make travelling an easier option for potential tourists worldwide. A perfect example of the affect of open skies policies is when you look at the capital appreciation in countries such as Hungary when flights became available.

The Moroccan Economy
Morocco can be described as a stable economy enjoying steady growth. The Jettou government continues to encourage reform, liberalization and modernization to stimulate both growth and employment. The Dirham, Morocco´s unit of currency, has experienced growth of 18% since 1990. The economy is expected to be boosted further if, as is expected, Morocco becomes part of the Euro-Med free trade zone. As an important element of the national development plan of 'Vision 2010', the chief economic objective is to establish a close relationship with the European Union.

With the aid of the International Monetary Fund (IMF) and an economic reform programme, Morocco has managed to restrict government spending. Today, employment remains mainly within the volatile agricultural sector, but over the long term Morocco will have to move its economy away from agriculture and develop a more stable economic basis for its growth. One area is in the growing tourism market, where significant amounts of employment are being created in the construction and service sectors which will later be transferred to the tourism sector.

Morocco has held inflation rates to industrial country averages over the past decade due to a foreign exchange rate anchor and well-managed monetary policy. Inflation in 2005 was at 2.5%. The country maintains a current account surplus and foreign exchange reserves are strong, amounting to around $15 billion.

In 2005 the Moroccan Government secured a Free Trade Agreement (FTA) with the USA. The U.S.- Morocco FTA is the second in the Arab world and the first to be made in Africa. It immediately eliminated tariffs on 95% of US trade in consumer and industrial products. Further FTA reforms and liberalization are currently underway.

20 Reasons Why Morocco Is An Intelligent Property Investment
1. Low cost of living - experience a luxury lifestyle at little expense
2. Low property prices, 50% less than most other European resorts
3. Booming property market with high capital growth potential
4. Between 0% and 20% tax on any capital gains
5. 0% Inheritance tax to family
6. No annual property tax for first 5 years
7. Rental occupancy expected to reach 85% most years during peak season
8. Mortgages available
9. Vision 2010 aims to increase tourism and improve the infrastructure, achieving a projected increase in tourism of 10 million visitors per year by 2010
10. Increased tourism generated by the Vision 2010 project due to create a huge demand for rental accommodation
11. Vision 2010 is providing new roads, marinas, trains, 5 star resorts, shopping malls, beach clubs
12. “Open Skies” policy, activated on 1st January 2006, allows low cost airlines to service Morocco and create competitive fares
13. Yacht club and berth fees of under £27/month
14. Safe investment – notary supervised property registration similar to that of France and Spain
15. Beautiful sandy beaches
16. Stunning golf courses, tennis clubs, riding clubs, waterskiing, sailing, scuba diving, hunting, hiking, camel treks and culture.
17. Mediterranean climate - hot summers and mild winters
18. French, Spanish and English widely spoken as well as traditional Arabic
19. Sight seeing and rich Moorish cultural experiences
20. Emerging market backed up by strong tourism and low flight times

If the whole country represents a great investment opportunity, Morocco’s north-eastern Mediterranean coast is the best choice for those who value unspoilt natural beauty and for investors wishing to purchase in a new, up-and-coming area.

There can be no doubt that Morocco offers a wonderful opportunity, stunning weather, dramatically cheaper prices than the Costa Del Sol, warm seas, a stable country and about to experience a tourist boom. The only question is do you wish to take advantage of the opportunity that is Morocco?

Questions and Answers:

If you do not find what you're looking for below, then please do not hesitate to contact us on 0800 321 32 07 or email us on sales@bgestates.com

Will I need a solicitor?
It’s essential to engage a reputable, experienced local solicitor. We have established connections with a London-based Moroccan solicitor who can advise on all aspects of property purchase.

Can I get a mortgage in Morocco?
Yes, mortgages are available for 60% of the property value.

Will I need a Moroccan bank account?
Yes, we can do this for you. We will supply all the relevant forms and translations. We advise that all currency transactions are carried out through a broker such as Moneycorp.

How do I secure a property?
An initial holding deposit of £2000 is all that is needed to secure a property for 28 days. This gives you time to visit the project or buy ‘site unseen’.

What is the payment structure for the Oasis Beach and Golf Resort?
20% of the purchase price is payable on exchange of contracts (a deposit of £2,000 is deducted from this). A further 10% is then required on start of construction followed by a further 10% on completion of the concrete structure. The final 60% is paid either in cash or via a mortgage.

Will I be able to rent out my property?
Properties here should provide lucrative year-round rental potential because of the climate and golf facilities. An added bonus is that owners are income tax-exempt for the first 5 years.

What ongoing costs should I expect?
Running costs are set to be around £120-£160 per month, including utility, maintenance and management charges.

What is the Capital Gains Tax situation?
Capital Gains Tax (TPI) is 20% of the profit, with a minimum of 3% of the sale price. There is a double taxation treaty between the UK and Morocco to ensure that this is not paid in both countries. Properties sold within 8 years or more of ownership are fully exempt from TPI. Properties sold after more than 5 years ownership but less than 10 years are subject to TPI of 10% of any capital gain over 1 million MAD (about £62,000).

What if I want to re-sell before completion?
You can sell on to a 3rd party (once the initial 20% has been paid) via a transfer contract drawn up by your solicitor.

What is the local currency?
Local currency is the dirham (MAD).

Where can I find more information on Morocco?
Moroccan Embassy, 49 Queens Gate Gardens,
London SW7 5NE Tel. 020 7581 5001
Thank you for taking the time to visit our site!