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An Introduction to Morocco
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Morocco nestles on the north western tip of Africa, separated from the rest of the continent by the majestic Atlas Mountains and by the Sahara Desert.
Its climate, geography and history are more closely related to Mediterranean Europe than to the rest of Africa and for this reason visitors are often struck by the odd sensation of having not quite reached Africa. In the north, its fine beaches, lush highland valleys and evocative old cities reinforce this Mediterranean impression.
A vibrant and exotic country that has attracted high profile real estate investors including Richard Branson, the Rolling Stones and Malcom Forbes, Morocco offers the convenience of the Costa del Sol at significantly lower prices.
In recent years, tourists and investors alike have begun to realize that Morocco has much to offer. |
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As well as the cultural cities of Marrakech and Tangiers, the Mediterranean coast line attracts buyers looking for a quieter and more beach orientated way of life. Offering spectacular beaches with abundant sand bars, this Mediterranean coast rivals that of many Caribbean destinations. It is widely predicted that the costal property market in Morocco is set to boom. UK tourism has increased by some 18% between 2004 and 2005 alone.
The climate in the north of Morocco is reliably dry. The average temperature in the summer is 29° C. The months between October and April are slightly cooler providing welcome winter sun.
Morocco Investment Background
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In 1999, Prince Sidi Mohammed was declared King of Morocco. After his enthronement, the King revealed his ambitious development plans for the country.
In 2001, the Moroccan government presented Vision 2010 as Morocco's national tourism strategy (Azur Program).
The main objectives of Plan Azur were to attract five times as many visitors in 2010 as in 2002 and to create 600,000 new jobs in the tourist sector.
In conjunction with the Azur Program, the Moroccan government has announced: |
The creation of 6 new coastal resorts (5 on the Atlantic Coast and 1 on the Mediterranean Coast)
New Motorways to be built or upgraded
New Regional Airports to be either built or upgraded
Increase and de-regulate incoming flights from all over Europe
A possible tunnel link between Tangier and Spain
Why Invest in Morocco Now?
1) Tourism on the rise - Tourist trade expected to double by 2010 to 10m visitors a year, under government’s Azur Program initiative. Infrastructure and resources are receiving much investment and undergoing huge improvement.
2) Favorable investment conditions - Morocco actively encourages foreign investment with his Royal Highness King Mohammed VI creating conditions which do not differentiate between foreign and national investors and are attractive to the foreign buyer.
3) Travel - Direct flights from the UK (approx 3 hours); with several international airports located within a short drive to resorts.
New Moroccan Open Skies Agreement will usher in low-cost carriers by 2007.
4) Weather - Morocco’s climate is moderate and subtropical, cooled by breezes off the Mediterranean Sea and Atlantic Ocean. Marrakech has an average winter temperature of 21ºC (70ºF). The Mediterranean coast line is situated in a micro-climate with warm Mediterranean breezes as well as cooling air from the Atlantic – Gibraltar Straits.
The northern Mediterranean coast is framed by a mountain backdrop. Average weather conditions are reliably dry and approximately 3-5° warmer than Spain’s Costa del Sol.
5) Pricing - Prices significantly lower than in Spain’s Costa Del Sol. Extremely spacious and high-specification 2/3 bed apartments starting at approx €150,000 and 3 bed villas starting at €245,000.
6) Growth - Expect significant capital growth and guaranteed rental income.
7) Activities – New Resorts include private beaches, beach clubs, multiple golf courses, marinas, Aqua Parks, hotels, international brand shops and restaurants.
Mediterranean – Saidia Resort (Plan Azur’s only Mediterranean-Coast Resort)
The Mediterranean-Saidia Resort includes 6 km of stunning coastline, with hotels, three 18-hole golf courses, an 840 berth marina, exclusive shops, bars, restaurants and of course, luxury Mediterranean style apartments and villas. This amazing resort project is forecast to have a regional economic impact of a staggering 1500 million euros.
Mediterrania-Saidia has excellent communications that allow the resort to be easily and quickly connected to the main cities in Morocco, Europe and the rest of the world. The international airports of Oujda, Nador and Melilla meet all the requirements of air transportation, complemented by recent improvements to the road networks. Most importantly, Oujda Airport is now being upgraded due to Morocco’s recently announced ‘Open Skies’ Initiative which will bring low-cost European Airlines to the Airport by 2007.
Only 3 hours from Berlin and London, 2 hours from Paris and Rome and 1 hour from Madrid, this is your chance to own property in an exclusive and modern resort by the Mediterranean sea, with endless white-sand beaches and natural protected areas, designed to satisfy a diversity of residential tourism needs for those seeking sunshine and beaches, unique culture and history or golf and nautical sports.
Mediterrania-Saidia will become a great leisure and entertainment centre, and the design of the resort will pay special attention to common areas and general facilities dedicating more than 145,000 m2 to public spaces, administration services, a medical centre and heliport.
Furthermore the resort will have 175,000m2 totally reserved as green areas, including two parks and along the whole 6km stretch of coastline there will be an incredible 17 Beach Clubs in total.
Mediterrania-Saidia Highlights:
- A unique opportunity to invest and live in one of the most prestigious developments in the world (recently voted as number 6 in the top 10 new Marina Developments by Homes Overseas magazine) -- April 2006 issue
- 6 KM of beautiful sandy beaches
- A promenade with 17 beach clubs
- 3 professionally designed 18-hole golf courses
- State-of-the-art Marina with 840 Mooring berths
- A diving and sailing center
- Restaurants and bars in the harbor
- European shopping centre with exclusive shops including Gucci & Hugo Boss
- A Moroccan Medina (Market)
- Medical Center
- Olympic Training Center
- Tennis Center
- Aquatic Park
- Conference Center & Heliport
View full information and photos on our exclusive
Mediterranean – Saidia Resort Properties HERE
Morocco Property FAQ
Who can purchase?
Any investor, overseas or resident, can purchase in Morocco.
Are Morocco properties freehold?
Essential Worldwide only deals with 100% Freehold properties in Morocco.
Where are the six Plan Azur Government sponsored resorts being built?
1. The Mediterrania-Saidia resort is located on the Mediterranean coastline, near the popular resort town of Saidia.
2. Port Lixus, near Larache on the northern Atlantic coast.
3. Mazagan, near El Jadida, on the Atlantic coast.
4. Mogador, near Essaouira, on the Atlantic coast.
5. Taghazout, near Agadir, on the Atlantic coast.
6. Plage Blanche, on the south Atlantic coast.
Is it possible to get a mortgage as a non-resident in Morocco?
Yes, Moroccan banks sometimes lend up to 100% but 60% of the property value is standard.
Are you free to choose your mortgage and bank?
Yes, but we also negotiated favorable terms for our clients with some major banks.
Do I need a bank account in Morocco?
Yes, we can arrange that for you with the local branches of the major Moroccan banks. You only need to have a bank account in place in time for title deeds and completion of purchase.
How do I transfer money to Morocco?
You can use your own bank or a currency-exchange broker such as IMS FX (www.IMSFX.org)
How do I reserve a property?
At Le Jardin de Fleur within Mediterrania-Saidia, we will reserve your chosen property for a maximum period of 14 days. To do this you will need to pay an initial holding deposit of €3000 or £2000. This gives you the time to either visit Mediterrania-Saidia or to purchase site-unseen. Please note that we do offer free Inspection Trips to Mediterranean-Saidia. See full details here: http://www.essentialww.com/en/developments/details.asp?devid=1658
What is the payment structure?
On exchange of contracts, 20% of the purchase price is payable (less the initial holding deposit). A second payment of 20% is due when construction works commence i.e. when ground work and foundations are started (this is anticipated to be November 2006). On completion, the outstanding balance of 60% is due either by mortgage or cash to complete your purchase. Completion is planned for 4th Quarter 2008.
What are the purchasing costs?
You should budget for about 5 to 6% over the purchase price to cover:
Stamp duty: 2.5%, Legal Fees: 1.1%, Notary fees: 0.5%, Land Registry: 1.5% to 2%, Dispatch fees: approx €30, Misc. Certificates: €30
Do I need a solicitor?
Normally you can use the local notary but we do have an excellent Spain based legal firm familiar with Morocco and the development that can be used. The Moroccan legal system is based in part on the French system; we have french speaking lawyers we can recommend.
Is it possible to rent the property out?
Yes, definitely. All owners are tax-exempt on any rental income for the 1st five years in Morocco. The resort will have on-site Property and Rental Management offices for clients to utilize. Early indications are that a guaranteed rental scheme will evenually be available to all owners if they so choose to include their property in the program. Expect excellent yields at or near 10%.
Are there ongoing costs besides water and electricity?
We estimate community charges of approximately € 60/monthly. This includes garden upkeep & maintanance, clubhouse membership, maintenance of communal swimming pools, 24 hour security.
What do I need to know about taxes in Morocco?
Both the UK and the USA have double tax treaties with Morocco which ensures that Capital Gains Tax (TPI) is not paid in both countries. In Morocco, TPI is 20% of the profit with a minimum of 3% of the sales price. If you sell your property after 10 years of ownership, you are fully exempt from TPI.
Owners who sell their property after five years but within ten years are subject to TPI of 10% of any capital gain over 1 million DRh (€ 65,000). There are no death duties as long as the property stays within the family (however, it is advisable to seek professional tax advice as individual circumstances and company purchases of property can alter your tax liabilities).
What if I want to sell my property before completion?
You can sell your property to a third party once the initial 20% installment has been paid. A transfer/administration fee of approx € 500 will be charged by the Developer. Selling on your investment is very easy and can be facilitated by your solicitor.
Who can tell me more about Moroccan culture, history and economics?
Moroccan Embassy, 49 Queens Gate Gardens, London SW7 5NE, Tel: 020 7581 5001, www.morocco.embassyhomepage.com | 
