In 2001, King Mohammed VI announced his vision during the National Meeting on Tourism, and since Morocco has officially been engaged in a new tourist policy, the ambitious plan is aimed to increase tourist arrivals to around 10 million over the next years. State has begun to set up tourism as a national economic priority focusing major developments such as the improvement of Morocco’s infrastructure in general, and the countries pleasantness for investments. In fact and quite in contrast to most countries in Africa and the Middle East, Morocco has long emboldened foreigners to buy and invest in property in the country. Foreign investors are welcome to buy, rent and invest in land and real estate almost freely (except agricultural land). “The 2010 Vision” sets itself the goal of achieving the following figures-based objectives:

• Based on tourist arrivals, it is planned to reach 10 million of tourists against 5,5Million in 2005, 7 million of 10 million are supposed to be international tourists;
• Increase of hotel capacity, 160.000 beds will be created (130.000 beds in coast line tourist resorts and developments and 30.000 beds in the cultural destinations of the country), putting the national capacity up to 230.000 beds;
• Investments: the volume should reach 8 to 9 billion Euros, (planning of the new sea tourist resorts, infrastructures, hotel trade and entertainment);
• Jobs: 600.000 new jobs will be created;
• Contribution of tourism to the GDP: this contribution should annually rise by 8.5% (on average), which would bring it to around 20% by the year 2010 Despite the global slowdown over the last few years, the government has continued to increase investing on construction and regeneration of its transport infrastructure. Since 2007, Morocco’s economy has grown at a quite impressive number despite the overall economic situation (2007: 2.7%, 2008: 5.6%, 2009: estimated 5.0%).

The real estate market hasn’t been hit that heavy like in some neighboring countries or close by European states. However, Morocco has seen also a decline in prices especially in the high-end property. Demand in the lower sector is still strong and government is working to reduce housing shortage for the low- and medium income housing. Supply on the second home market will also increase when finishing all six large resorts which are part of the government’s national tourism strategy “Plan Azur”. Another issue what will affect the second home property market are flight connections from and to Morocco. Several low-cost carrier cancelled routes from some European locations to some of the main resort locations in Morocco. These flight connections will definitely impact the success of some of the resorts. Foreigners such as UK and French buyer depend on their decision where to invest on easy accessibility of their vacation home.

Riads are still in demand by foreign buyers. Cities like Casablanca, Fes and of course Marrakech lead the list of the sought-after locations for riads. The traditional Moroccan houses within the ancient cities also called Medina, are the most charming way to explore the Moroccan lifestyle of living. However, speaking for Marrakech, we have seen an increase in supply what will impact prices especially in the high-end sector. Like always, it all depend on location and uniqueness so some properties will prove their asking prices.

Morocco as being the country of the ‘Thousand and the one Nights’ still benefits from a more and more increasing media presence about jet setters and famous celebrities visiting the country. In a result to that, new 5* hotels open its doors to the wealthy clientele like the La Mamounia. Marrakech for example is home to not less than 27 of its kind. Of course, the lifestyle, exotic food and vibrant bustling life proof Morocco’s appeal not only for tourists.

Posted By: Peter Rabitz