Because of the high certainty of strong returns, the real estate industry is one of the most profitable investment areas in Morocco. For several years, the rate of real estate development has been expanding, as evidenced by the presence of many international investors in the country. Several Moroccan cities are undergoing rapid expansion and have well-developed facilities that are ideal for this type of investment. Are you looking forward to taking this step? Here are a few reasons why you might consider investing in Moroccan real estate:
The economy has been continuously rising at 6% per year, and the real estate industry has not been harmed by recessions as it has been in other countries. With the Moroccan government’s desire to continue attracting more tourists, as well as efforts to improve infrastructure, this sector is only projected to increase.
Morocco is a country on the rise economically. The money you put into this thriving economy today will almost certainly increase in value in the medium and long term, as well as provide a healthy profit margin.
In terms of the conditions and legislation of real estate purchase in Morocco, Moroccan laws are mostly based on the French model.
The framework law n° 18-95 assures and facilitates for foreign investors a favorable investment environment in Morocco, as well as the transfer of any income created by an investment or its liquidation.
Foreign non-residents can acquire loans in the local currency from Moroccan banks to fund the purchase or building of real estate.
From the opinion of a landlord, the returns on property investment — the rental yield earned – are favorable in Morocco. Furthermore, reflecting the improving economy, there has been a significant increase in domestic residential demand during the last year. Local residential property values, on the other hand, have remained unchanged.
Moroccan properties, such as real estate in Marrakech, are substantially more appealing than their European counterparts in terms of surface area/price ratio. Morocco’s real estate prices are often highly attractive. As a result, it is feasible to begin investing with a small amount of money and end up with properties of good worth. Large cities, such as Marrakech, offer a wide range of excellent construction quality at unbelievable prices, ranging from villas to apartments for sale.
Morocco, unlike many other North African countries that have been shaken by a series of uprisings, has remained stable and free of turmoil. And this consistency gives any real estate investment project the visibility it needs while also lowering the risk of the future.
Buying real estate in Morocco can be quite beneficial in the long run, and it may be more appealing than a basic yearly or seasonal rental.
Furthermore, Morocco’s political, economic, and financial stability, as well as the significant outcomes the country continues to achieve and its extraordinary links with Europe, have significantly attracted foreign entrepreneurs to explore the country’s wealth.
In the third quarter of 2020, between July and September, Morocco’s Real Estate Price Index fell by 0.8 percent on an annual basis.
According to the country’s central bank, Bank Al-Maghrib, and the National Agency for Land Registration, Cadastre, and Cartography, despite the drop in prices, the number of real estate transactions in Morocco declined by 9.5 percent (ANCFCC).
The drop in real estate prices is due to a 1.2 percent drop in residential property prices, which includes apartments (-1.1%), houses (-2.7%), and villas (+0.8%), as well as a 0.4 percent loss in land prices.
Between 2013 and 2017, the residential construction business grew at a CAGR of 9.2% in value terms. The volume of affordable residential building increased at a CAGR of 3.3 percent over the study period. The volume of luxury residential construction increased at a 6.8% CAGR. During the projected period of 2018 to 2022, the CAGR is expected to be 9.3%.
The value of the building construction industry increased at a CAGR of 7.8% over the review period. During the forecast period of 2018 to 2022, the CAGR is expected to be 9.0%. In terms of value, the commercial building construction market is estimated to grow at a CAGR of 6.9% over the forecast period.
Finally, as a country with significant economic growth, you may expect good added values as well as a high rental return of 6 to 8% on your real estate investments in Morocco.
Finally, real estate investing in Morocco has a number of advantages. However, you must be aware of the hazards associated before deciding to invest in real estate in this country, and you must never be lured by an amazing opportunity that could result in financial loss.
We propose that you get solid advice in order to get the most out of your investment in our lovely country.
Villas Master is a market leader in Morocco’s luxury real estate sector, committed to recognizing and addressing the demands of our clients.
