Morocco – Investment Growth
Morocco is already making a name for itself as a new hotspot for the world’s property investors. Morocco’s luxurious new property developments are accepted to be of the highest standards available and the very competitive prices mean that Morocco can boast top quality property in 5 star luxury resorts for a fraction of the price of property of far less calibre elsewhere.
With the great deal of media that Morocco is currently demanding and the large number of the worlds wealthy, including film stars and sports heroes. Richard Branson, the Rolling Stones and Malcolm Forbes have purchased property in Morocco. Moroccan property offers to the rest of us the convenience of the Costa del Sol at significantly lower prices. With famous names already buying property in new resorts on the African coast, it is not surprising that Morocco is widely tipped to become a new elite holiday destination, and in certain areas, luxury playgrounds for the wealthy like Puerto Banus,Marbella, Monaco, and St Tropez. When construction of the many new facilities, luxurious living accommodation, new roads and new Marinas and ports are completed, it is expected property prices will be far higher than investors can purchase at present. The resorts are expected to attract vast numbers of tourists on short term holidays generating excellent rental yields for the investors who own these properties.
Capital Growth Predictions
Many sources offer different views on what is expected to happen to the value of new Moroccan property in the newly constructed resorts. There are some differences in opinion as always, but the common factor is that prices are expected to rise and at a rate that will please investors. The growth rate has been quoted as being around 30% in 2005 (Homes Overseas Magazine) but as a more conservative estimate, 15% is accepted as being very 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 being constructed. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved from the peak season months alone. Peak season months are classed as June - September and rental based on a 2 bed apartment costing around €100,000 is expected to be around €2,000 per month.
With 85% rental occupancy currently during the high season and the number of tourists set to grow faster than the amount of available accommodation, this figure is expected to grow meaning even larger occupancy levels for investors and even potential growth in rental prices as demand increases. |
