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Unico, the developer’s behind the prestigious Tafedna Bay Resort have extended the project’s incredible payment terms for a short time. You can currently purchase a property for only 15% deposit and 15% discount from the developer, and with the level of sporting facilities hotels, marina, golf course (and celebrities) on offer we are expecting the very high levels of sales to continue despite the current economic conditions. There is really very little difference between speculating on the future price of these properties (currently growing by around 15% per annum) and any other commodity…and with the way the market is growing around the Essaouira - recently mentioned in the Sunday papers as being a cultural Mecca - investing now seems to be a solid medium term option.

Buying property in an emerging market is all about trying to predicting the future value of your investment. A very significant factor in this forecast is identifying how a region’s infrastructure will develop. For those investing into Morocco’s property market, advances over the last 5 years and steps to build a ‘chunnel’ linking Spain over the straights of Gibraltar must be viewed in a very positive light. Although the project is an enormous undertaking costing anywhere between €3 - €10bn, both sides seem determined to move forward amidst an incredible level of other infrastructure projects.

Much of this infrastructure planning is underway to support the dramatic increase in tourist numbers engineered by the King’s Plan Azur and collaboration from numerous other countries demonstrates a substantial level of confidence in Morocco’s future.

Road

Morocco’s road system is receiving an enormous overhaul from gigantic new highways to a comprehensive upgrade to its rural road system. In a recent agreement with the Kuwait Fund for Arab Economic Development (KFAED) a £30m deal will modernize over 500 km of roads.

The construction of these routes will allow for the improvement of the distribution system for agricultural products and will help create new economic zones in line with the general vision of the government, which aims to develop the rural areas by facilitating the creation of employment opportunities,” said Economy and Finance Minister Salaheddine Mezouar in statement released to a local news agency.

According to the minister of equipment and transportation, Karim Ghellab, this project will ultimately improve the socio-economic situation of 100,000 rural Moroccans.

Morocco’s government hopes to pave and upgrade a total of 15,500 km of roads by the year 2012. This includes improving access to paved roads to 80% of the rural population from the 2005 level of 54%. It is estimated that a total of Dh10bn ($1.3bn) will be needed to realise the goals of the programme.

Rail
Around £3bn is invested into upgrading the countries entire rail network. A £1.2 bn high speed rail link has recently been agreed enabling high speed 125mph trains to connect Marrakesh and Tangiers in around 2.5 hours. Both the track and trains will be built by the French engineering group Alstom, the maker of the French high-speed TGV. The line is expected to be operational before 2015 and is expected to reduce travel time from the current 11 hours to 2.5. Plans are also underway to link London to Marrakesh but this project is someway off.

Airports
As was witnessed in Spain, better cheaper access goes a long way to fuelling any overseas property boom and since Morocco’s open skies agreement was ratified in 2005 the budget carriers are now all involved. The Tangier and Casablanca airports are being expanded and a new airport near the deep sea port west of Tangier is underway, together with a major extension at Essaouira which is already taking flights from Paris.

Sea
There is also significant investment in a new deep sea port to the east of Tangier, with APM Terminals and The Akwa Group planning to complete the project in 2009. Freight can therefore be diverted away from Tangier and Casablanca freeing these ports up for more tourism and the arrival of the cruise liners and day trippers. The port is strategically located on one of the world’s most important routes with over 200 ships per day passing through the Straits of Gibraltar.

Conclusion
Broadly speaking you do not have to look to far into Morocco’s infrastructure development to appreciate that 10 years from now the country will operate a highly sophisticated transport system. Anyone thinking about investing into emerging markets must for these and numerous other reasons consider property in Morocco as a viable location.

Economic progress in Morocco has been described by the IMF (International Monetary Fund) as “remarkable”. The 2007 country report stated that “GDP growth has moved onto a higher trajectory, inflation had been contained ans foregin direct investment has increased and poverty and unemployment has been significantly reduced”.
Average growth in Morocco has reached 5.4% per year since 2001, 3.4% higher than the nineties. the IMF also noted that good use of public finances had paid dividends which must be good news for anyone looking to invest in morocco.

Santiago Island is located in Cape Verde and it has been identified as a future overseas property investment.

Santiago Island is Europe’s closest tropical islands and has regular low cost flights from the UK. This is helping Santiago to become a top future investment destination.

Prices on the Island of Santiago have risen by as much as 15% within the last 12 months. The island is seeing a growing reputation as a favorite tourist destination and property prices are estimated to rise by 75% with in the next 5 years.

Morocco is also seen as a unique investment property location and is offering market prices which are more favorable to other locations. Morocco offers a great sense of security with investors, with tourism ever increasing and with buy to let investors reporting 85% occupancy during peak seasons.

At current the Moroccan market is booming and is seeing a huge growth especially within areas which are earmarked to be in the national development plan. The areas in the national development plan are being developed into luxury resorts with the infrastructure being built around it. With this and many other key factors there is an ever increasing demand for property and accommodation and at current property here is seen as excellent value and are set to generate very good rental yields.

Morocco also sees some of the most favorable tax legislations in the world. Capital gains tax is charged at 20% if the property is sold within the first 5 years, 10% if it is sold within 10 years and 0% if it is sold after the 10 years period.

Buying property in Morocco is a much safer investment as it already proven it has all the infrastructure in place and is only a 3 hour flight from the UK. Santiago is still in its very early stages of development and it could be many years yet before you see any type of return on your investment where as investors in Morocco are already benefiting from their properties and it is still early enough for future property investors to purchase and a good return.

Morocco is becoming one of the leading “emerging” property markets. Relatively low property prices, high expected capital gains and a rapidly growing buy-to-let market are causing pundits around the globe to predict Morocco as the new Spain.

Spain in the 1970’s was the place to buy property. A low cost of living combined with extremely low labour and building costs created a win-win situation for overseas buyers. Properties costing a small percentage of the relative cost of property in the buyers home market were readily available and many UK buyers took advantage of the situation, making small, or in some cases, large fortunes in the process, when Spain’s property market came into line with the rest of the E.U. Morocco mirrors the situation that existed in Spain forty years ago:

• Property prices are very attractive compared to the E.U.
• The low cost of living makes a luxury lifestyle a real possibility
• The property boom is at the beginning of it’s cycle
• Rental properties are experiencing 85% occupancy during the season
• Capital growth is in excess of 15% year on year
• Airfares, yacht club mooring fees and golf memberships are comparable to Spain thirty years ago

There are several factors that actually make Morocco a more attractive investment opportunity than Spain ever was:

High build quality. Building technology has improved in leaps and bounds during the interim and Moroccan construction firms are using the best modern technology in building

Low capital gains tax. Capital gains tax runs from 0% to only 20%, depending on a number of factors.

Inheritance tax. There is no inheritance tax in Morocco.

Property tax. No property taxes for the first five years of ownership.

Morocco itself has all the attractions and amenities that encouraged British buyers to Spain in the past. A Mediterranean climate with hot summers and mild winters meaning comfortable year-round living. Miles of beautiful sandy beaches and clear blue waters. Modern golf courses offering low priced memberships. Inexpensive flights from most major airports, that will increase in competitiveness as Morocco becomes a more popular destination. English is widely spoken and fast becoming the nation’s second language. Perhaps most important is the growth and ready availability of “buy to let” mortgages, unheard of in 1970’s Spain, creating numerous opportunities, not only to buy a place in the sun, but wealth creation at the same time. There are even several companies offering almost unbeatable investment opportunities in up-coming projects.

Illiteracy in Morocco is a major problem being tackled by interior reform and backed by the World Bank and The Middle East Partnership Initiative (MEPI) (this is the U.S. Government response to calls for change in the Middle East and North Africa). In 1980 almost 60% of adult males were illiterate and around 85% of females.

These figures are now around 35% and 60% respectively (according to data compiled in 2003). If you compare these statistics with other emerging markets such as Bulgaria whose illiteracy rate (combined) stands at under 1% then the issue becomes clear. However, reform is now well under way with remote villages educating both adults and far more children as parents feel more comfortable sending their children due to better transport links and much improved facilities.

Clearly this lack of education has had an effect on economic stability and development as even small improvements are likely to increase per capita GDP - a recent report from the Organization for Economic Cooperation and Development (OECD) demonstrated that a 1% increase in adult literacy would produce a permanent 1.5% increase in the gross domestic product.

Although there is still a long way to go there is definately a sense of momentum which will have a huge effect on business in the decades to come.

Offshore Properties will shortly be launching one of Morocco’s largest developments… 

Offshore Properties will shortly be launching Morocco’s largest development 20km south of Agadir on a beautiful beach front site, spread over 12 square miles.  The project will have a world class sports facility supported by the LTA and high profile football clubs, a large hotel chain, shops, restaurants and marina.

A £1,000 refundable reservation fee entitles buyers to a choice of properties in the first phase and only 15% deposit with nothing to pay until completion!  Plans will be released in June.  We feel that this is possibly one of the best off-plan opportunities we have seen in recent years.  Captial appreciation looks set to be impressive especially for those getting in on the first phase.

Morocco has fast become one of the world’s property hot spots with annual tourism figures having leaped by 60% from 4.2 million in 2003 to an estimated 6.8 million by the end of this year. Capital growth is, as you would expect in a booming market, superb and depending on the region has been 15% to 35% per annum.

King Mohammed is well under way with his Plan Azur which is designed to attract 10 million tourists a year by 2010.  Since coming to power in 1999 the young King liberalised the political system and implemented exciting new policies to attract foreign investment into the country. Huge investment has already been made and major infrastructural developments currently in development include:

·  The new ‘Golden Mediterranean’ seaport a Tangiers
·  Airport upgrades at Tangiers and Tetouan
·  The Seafront Promenade development at Marina Smir
·  Major road and rail developments
·  The Straits of Gibraltar tunnel from Tangier to Tarifa in Spain King Mohammed’s recently implanted ‘open skies’ agreement has made further tourism boom inevitable.

 Monarch, Ryanair, and Easyjet are reported to be vying for landing rights to Marrakech, Tangier and Tetouan airports, while Ryanair have already signed a five year deal with the Moroccan government to open 20 new routes.

Anyone who kicked themselves for not getting into Spanish property 10 years ago is effectively being given a second chance. But don’t hang around – all the predictions indicate that the price gap will close over the next 12 months.