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Is Morocco good for property investment?

Is Morocco good for property investment?

09 Juin 2021
Is Morocco good for property investment?

The real estate Industry is one of the most profitable investment sectors in Morocco, because it carries high assurance of good returns. The rate of development of real estate has been increasing for several years and is observed in the presence of many foreign investors in the country. Multiple Moroccan cities are experiencing rising growth and possess solid infrastructures that are conducive to this type of investment. Are you eager to take this step? Here are a few reasons that will encourage you to invest in real estate in Morocco:

The economy has been growing steadily at a rate of six percent each year, and the real estate market hasn’t been affected as it has in other countries by recessions in the past. With the Moroccan government’s ambition to keep attracting more and more tourists, plans to build up the infrastructure are developing as well, this market is only expected to grow.

Morocco is a country in a full upward economic swing. The funds invested today in this booming economy are guaranteed to increase in value, in the short and long term, and offer a solid profit margin.

Moroccan laws are largely based on the French model in regards to the terms and laws of purchase of real estate in Morocco.

The free convertibility of the dirham organized by the framework law n ° 18-95 guarantees and facilitates for foreigners the a favorable investment setting in Morocco, the transfer of any income generated by an investment or its liquidation.

In order to finance the purchase or construction of real estate, foreign non-residents have the opportunity to obtain loans in the local currency from Moroccan banks.

From a landlord’s perspective the returns on property investment – the rental yield earned – are good, investing in Morocco.  In addition, over the last year there’s been a strong surge in domestic residential demand, reflecting the growing economy.  Yet local residential property prices have been static.

In regards the surface area/price ratio, Moroccan properties, such as real estate marrakech are significantly more attractive than their European equivalents. The prices of real estate in Morocco are usually very attractive. It is therefore possible to start investing with a small amount of capital that translates to properties with solid value. Big cities such as Marrakech offer a variety of very good build quality at incredible prices, from villa for sale Marrakech to apartment for sale marrakech also the possibility of apartments for rent in Marrakech or marrakech villas to rent that are ideal for a second home or as a rental investment.

Unlike many other North African countries that have been upset by many uprisings, Morocco has remained stable and far from turmoil. And this stability provides the visibility needed for any real estate investment project and minimizes the risk of the future.

Purchasing real estate morocco is very profitable in the mid and long term and could be more attractive than a simple yearly and/or seasonal, rental.

Furthermore, the climate of political, economic and financial stability, the important results that the country keeps on achieving and the exceptional relations that Morocco is maintaining with Europe have largely encouraged foreign operators to explore the wealth of this country.

Morocco’s Real Estate Price Index recorded an annual decline of 0.8% in the third quarter of 2020, between July and September.

Despite the decrease in prices, the number of real estate transactions in Morocco also fell by 9.5%, according to the country’s central bank, Bank Al-Maghrib, and the National Agency for Land Registration, Cadastre, and Cartography (ANCFCC).

The decline in real estate prices reflects a 1.2% drop in the prices of residential properties, including apartments (-1.1%), houses (-2.7%), and villas (+0.8%), and a 0.4% decrease in the prices of lands.

The residential construction industry in value terms increased at a CAGR of 9.2% during 2013-2017. During the review period, volume of affordable residential construction recorded a CAGR of 3.3%. Volume of luxury residential construction recorded a CAGR of 6.8%. CAGR during the forecast period of 2018 to 2022 is expected to be 9.3%.

During the review period, value of building construction industry recorded a CAGR of 7.8%. CAGR during the forecast period of 2018 to 2022 is expected to be 9.0%. The commercial building construction market in value terms is expected to record a CAGR of 6.9% over the forecast period.

Last, Morocco being a country of rapid economic growth, you can expect to enjoy some good added values, together with a high rental return, 6 to 8 %, from your real estate investments.

In conclusion, real estate investment in Morocco is an advantage. Nevertheless, before deciding to invest in real estate in this country, you must be cognizant of the risks involved and never be tempted by an extraordinary opportunity that might lead to financial loss.

To better capitalize on your investment in our beautiful country, we recommend you seek sound expertise.

Marrakech Sunset Properties are one of the leaders in Morocco's luxury real estate market, dedicated to knowing and understanding our clients’ needs .Feel free to ask us for more information on info@marrakechsusnet.com