Investir au Maroc

Buy to Let Potential with Moroccan Property

The term "Buy-to-Let" means simply the purchase and ownership of a property through normal procedure.

Once completed the owner seeks to rent this property for a regular income exceeding annual mortgage repayments.

The "Buy to Let" market in Morocco is expected to grow rapidly in line with the Vision 2010 project launched by King Mohammed VI and the UAE. This project is designed to improve the infrastructure, leisure utilities and other aspects all aimed at drastically increasing tourism. The target of the Vision 2010 is to increase the number of visitors to Morocco by 10 Million per year.

Part of this project is to encourage residential development which is currently underway with some fabulous 5 star developments being constructed. The huge increase in tourists will of course create a proportional requirement for accomodation. This is an excellent opportunity for "Buy to Let" investors to enter an emerging market at a time when purchase prices are at a low safe in the knowledge that a multi Billion dollar project is underway to generate vast volumes of tourists requiring accomodation and providing you with a comfortable rental income.

Although priced very reasonably Morocco property is being constructed with luxury in mind and already attracting the rich and famous. The harbours being constructed under the development program are creating a new hot spot for the financially elite. For the "Buy to let" investor this too is excellent news as a 5 star luxury environment helps to keep rental yields to a maximum.

"Buy to Let" Potential in Morocco

The rental market in Morocco is certainly more advanced than most emerging markets. It is noted that 85% occupancy is currently very common during the high season months and this figure is set to increase as Vision 2010 drives tourists to the Moroccan resorts faster than property can be built to accomodate them.

The goal of any "Buy to Let" investor is to cover any mortgage payments and generate a secondary income stream from their property investment. Morocco looks to be a great location to deploy this strategy with investors aiming to cover all mortgage payments and bills for the year with rental income generated from the high season months alone (4 months, July - September). As a guideline only, its expected that during this high season period, rental from a 2 bed apartment costing €100,000 should produce rental returns of €2,000 per month or more for the investor.

Morrocan Property Rental Market

In Morocco "Buy to let" investments will certainly favour the short term strategy due to the luxury style of the developments and the huge influx of expected tourists. However some investors may decide to rent at lower rates aimed at the international workforce that have re-located to service the increasing tourist industry.

The "Buy to Let" Strategy is not ideal for EVERY investor and it is essential that property for this strategy is chosen wisely as it needs to be a rentable property in a popular location to allow the investor to maximize income from the Investment. Even in a very busy market there is still competition and to maximize occupancy rates its vital that your selection of location, property, unit and monthly rental charge will directly effect occupancy and in turn your rental income.

The other benefit from this type of Investment is that during the time this property is being rented and earning the Investor an income and acting as a holiday home it is still appreciating in value at one of the fastest rates available. All in all the "Buy to Let" Investment model is a sound investment decision and Morocco is currently an ideal location to deploy this strategy.