More on Property in Morocco and how profitable is it really?

MORE ON PROPERTY IN MOROCCO AND HOW PROFITABLE IS IT REALLY?

Monday, 21 Jul 2008

As some property markets have been experiencing a ‘tightening of belts’ when it comes to investment in international real estate over the past twelve months, other property markets have been experiencing just the opposite turn of events, as these markets proved profitable and of interest even when the global credit crunch has crushed others.

More on Property in Morocco and how profitable is it really?

Morocco is one such market and even in 2008, property in Morocco is proving more and more profitable as the say’s go by...

Morocco has been named by many property experts as one of the markets that has helped them remain in a strong financial position throughout 2007, whilst other global names are lining up to invest money into property in Morocco in 2008. These facts should give individual investors maximum confidence in Morocco as a location to
be considered for investing in property.

A popular property company has recently released data showing how they “achieved a 3.2% year on year rise in profits and Jordanian based property developer Mawared is hoping that it can also use the Moroccan market to increase its profits from 2008 onwards.”

In response to this fortuitous time, “Earlier this month the developer signed a massive joint venture with the largest state fund in Morocco to develop projects in the likes of Fez and Tarfya in southern Morocco. The developments combine residential real estate and leisure based commercial properties into mainly tourism and international property buyer focused centres.” – Yet another positive turn about for Morocco.

As was mentioned by property experts, “Mawared are not only banking on the fact that Emaar have proved that property in Morocco remains profitable but quite possibly they are banking on the impressive numbers coming out of the Moroccan tourism market as well.”

In a statement made by the Tourism Minister, Mohamed Boussaid, recently, the minister advises that “the tourism sector generated in the region of 5.27 billion Euros in 2007.” A further indication that there is indeed potential and confidence in Morocco after all.

Were you to ever wonder whether the property market in Morocco was secondary in any way to ‘the government, to the economy and to the future successes of the nation’, you would be sorely wrong, as was specified by a recent report from MAP (the Maghreb Arabe Presse in Rabat) which is in direct support of this fact, showing just how strong a contributor real estate is to the economy in Morocco.

As is expected by all investors and would-be investors of property in Morocco, Morocco’s Vision 2010 blueprint for the nation is set to further encourage and persuade investors that Morocco is the choice of the season, and an excellent investment choice at that!

The plan broken down is as follows: “A very significant and long-term strategic part of this plan is to improve tourism numbers so that they reach an annual sustainable average of 10 million by 2010.”

Recently, resorts being developed are set to ‘combine hotel accommodation with privately owned accommodation – hence the massive and undeniable correlation between desired tourism growth and the development, promotion and desired success of the property market in Morocco.’

The Moroccan government is so committed to the development of exclusively desirable real estate within these key resorts that it has agreed to plans with Dubai based Emaar Properties to ‘develop at 6 destinations across the nation.’

This particular partnership will see to raising the profile of Morocco. The country’s commitment to the development of exclusive and truly sumptuous resorts ensures that interest in the Moroccan property market remains intense as it is already ‘returning positives for real estate as a contributing sector to the overall economy.”

The afore-mentioned report (from Maghreb Arabe Presse) was based upon information supplied by the Housing Minister of Morocco, Ahmed Toufiq Hejira.

This particular report indicates that “since property became such an important part of the nation’s agenda for economic diversification and expansion, foreign direct investments into property in Morocco have reached 0.91 billion U.S. dollars – from 245 million dollars back in 2002. What’s more, there has been an almost 33% increase in the numbers of jobs in the construction industry in the same period.”

It is important for us to point out that through all of these fiscal fundamental changes and upgrades; the Moroccan government has definitely NOT lost sight of the plight of its own people.

Whilst there undeniably and undoubtedly many individuals and groups that are benefiting from the increased underlying affluence of the nation at present, the government in Morocco is currently also implementing the construction of low cost housing whilst providing access to funding for greater numbers of its people to ensure that the divide between the rich and the poor does not become an unbridgeable gulf that only the rich and wealthy can afford to cross.

All in all, one can safely assume that Morocco, as an emerging economy and property sector is doing all it can to promote a healthy, balanced, desirable and lucrative property market and economy as a whole.