Property market still bullish in Morocco

Tangier is one of six Moroccan locations identified by the government to boost visitors from six million annually to 10m by 2011. There will be 600 miles of new roads and a 24-mile tunnel linking Tangier to Punta Palomas in Spain, 25 miles west of Gibraltar. There is now a daily hydrofoil from Malaga and car ferries take only 35 minutes from Tarifa.

Tangier is like an unspoilt Spanish city, but is slightly further south so even sunnier. There is plenty to do, too, and there is little sign that this is a Muslim country.

Traditional Riads make Tangier a pleasure

There are plenty of traditional riads, each built around an ornate courtyard, while outside the main town there is a major redevelopment of the coast. Part of this is the 2,500-home Tinja scheme. "These homes can be used throughout the year because of the good climate and facilities," says Majid Bennouna of Emaar, the Dubai-based developer.

Stephen Moss of the Hideaways Club, which offers fractional ownership of homes across the Mediterranean and has two properties in Morocco, says: "There is winter sun from September to April. A range of activities allow for different trips throughout the year, from trekking or skiing in the Atlas Mountains, to the history, culture and shopping opportunities in Marrakesh.

luxury developments on Tangier Atlantic coast nearing completion

"Being able to use the property during the year has a number of advantages," he adds. "For instance, you are not obliged to pay peak rates for plane tickets - and you are not restricted to a certain time of year to visit."

Government figures show that that since property became such an important part of Morocco's agenda for economic diversification and expansion, foreign direct investments have reached 0.91 billion U.S. dollars - from 245 million dollars back in 2002.

There has also been an almost 33% increase in the numbers of jobs in the construction industry in the same period.

Tangier a property investment hotspot close to Europe

Real estate agents report that the numbers of investment buyers have increased. The Marrakech property market, for example, has seen a growing influx of French, Spanish, American, Russian, Belgian, Italian, Kuwait, UAE, and British property investors, eager to cash in on this emerging market.

Land prices are also soaring. Since 2004 land prices have increased by 2% in areas like Marrakech and Tangier. But buying land is not easy. 'Many pieces of land on which luxury Moroccan properties can be built, are owned by large families or cooperatives and to sell it would require an agreement from every single one of them. It takes a long time, and often doesn't happen,' said a spokesman for Luxury Living in Morocco.



In Morocco, foreigners cannot buy and then resell land. They can only buy land to which they are going to add value. They can do this by building a residential building or tourist development. Agricultural land is sold to foreign investors together with a binding contract between the developers and the Moroccan local authority.

Thanks to the Telegraph and Propertywire