Paul Hendry
A Guide to Off-Plan Property Investing in Morocco
Copyright (c) 2007 sales marketing solutions
Morocco is one of the fastest growing property markets in
the world, with property prices in some areas increasing by
over 75% in the last two years alone . An astounding
increase but one I can verify from personal experience.
Although traditional investments in the property market in
Morocco have performed exceptionally well, those who
purchased property off-plan (pre-construction) at a
discounted price have achieved much higher returns.
Unlike the UK property market, when buying a property
off-plan in Morocco you can, in some cases, reserve the
property at a price which is well below the current market
value. Reserving a property at around 40% below market
value is not uncommon but where do you find these
properties and why do they offer these price reductions?
The life cycle of a new development can be thought of as
stages that a development goes through from planning to
completion. Once the developer secures the land and
completes the paperwork for planning, the project is then
complete and approval to build is acquired from the
relevant authorities. When that approval is granted, the
developer arranges the finance for the project. Finally,
the developer secures the contractual arrangements for the
construction of the project and begins to market the
properties to the initial investors.
In order to begin construction using the bank's finance,
the developer will need to be able to demonstrate that
around 50% of the development has already been reserved
off-plan. This is where the off-plan investors come into
the equation. By making a number of properties in the
project available at discounted prices, the developer can
quickly secure the sale of the initial properties required
for the project to start.
During construction and as soon as the discounted units in
the project have been reserved, the developer increases the
price of the remaining properties in the project, bringing
the price closer to the current market value. The prices of
the remaining units are further increased at different
stages of the development, gradually bringing the remaining
property prices up to the real market value.
Additional price increases, reflecting the natural growth
of the market during a two year construction period,
further increases your returns.
It is extremely important that the right property is
selected when investing off-plan in Morocco. It is not only
important that you reserve the right property, but also in
the right development and at the right price and with
reputable developers.
In 1999, His Highness Crown Prince Sidi Mohammed was
declared King of Morocco "His Majesty King Mohammed VI".
After his enthronement, the King uncovered his ambitious
development plans for Morocco.
In 2001, the Moroccan government presented Vision 2010 as
Morocco's national tourism strategy (Azur Programme). The
main objectives are to attract 10 million tourists to
Morocco's coastlines and to create 600,000 jobs in the
tourism industry by 2010. This forward thinking plan has
been warmly embraced by the Moroccan people.
One particular development created by the Azur Programme,
worthy of mention is Mediterrania Saïdia , a project of
7,000,000m² with 6km of unspoilt coastline, 11 hotels,
three 18 hole golf courses, a large marina (840 mooring
points), several shopping areas and more than 3,000
accommodation units.
The development will be a meeting point of cultures,
combining the exotic Mediterranean with a latest-generation
holiday resort.
The climate in the north of Morocco is reliably dry. The
average temperature in the summer is 29ºC. The months
between October and April are slightly cooler providing
welcome winter sun.
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Le Jardin de Fleur is a fantastic opportunity to live and
to invest in one of the most exclusive developments in
Mediterrania Saïdia. Le Jardin de Fleur offers modern and
beautifully designed apartments, penthouses, townhouses and
villas.
Paul Hendry is an off-plan property consultant and investor
who is committed to providing the best investment
information possible. Go to