By royal decree

With a helping hand from the king and a few Premiership footballers, the
property scene in Morocco is developing at an astonishing rate.
Matthew Boyd reports

Morocco's mysterious mountains shimmer just 13 kilometres across the Straits of Gibraltar from southern Spain, but it is a very different country from its neighbour, and one which is devoting huge energy and investment to becoming a top tourism and property destination.

Morocco's culture has been influenced by the Arabic, French, Berber and African traditions, and it is this mix of history, languages and religions which give it huge potential as a tourist destination.

The push to capture a bigger slice ofthe tourist and property market comes from the very top: King Mohammed VI is the driving force behind Vision 2010, a £2.2 billion initiative which aims to attract 10 million tourists per year by 2010.

The plan involves massive infrastructure investment in roads, fast rail links, ferry ports and, possibly, the ‘Stunnel', an underwater road and rail link to Spain.

Major resorts
An integral part of Vision 2010 is Plan Azur, the development of six new coastal resorts, five on the Atlantic Coast (Port Lixus, Mogador, Mazagan, Taghazoute and Plage Blanche) and one on the Mediterranean (Mediterrania Saidia).

These major resorts will be on a scale not seen before in Morocco and will feature golf courses, marinas, spas, shops, restaurants, and equestrian centres, as well as 40,000 hotel beds between them. They will all include significant residential development, and it is at these resorts that many UK property investors are opting for offplan properties in the hope that the 20 per cent capital gains witnessed over the last couple of years will continue.

Many commentators are rushing to compare Morocco with the development of the Costa del Sol, but agent Property Frontiers says: “The property and tourist boom in Morocco is at the beginning of its life cycle, but Morocco appears to have learnt the lessons created by the Spanish model and has therefore been very strict with planning requirements in order to protect the natural beauty of the country.

They have also implemented favourable tax laws for foreign investors with varying capital gains tax levels, no inheritance tax, no annual property tax for the first five years of ownership and there is a double taxation treaty in place for UK investors.”

As well as the new Plan Azur resorts, the beguiling city of Marrakech has become a bona fide property hot spot in recent years. Set on a plain against the dramatic backdrop of the snowcapped Atlas mountains, Marrakech is a frantic, exciting step in to the past, as exemplified by the Djema el Fnaa, a magical open square full of food vendors, snake charmers, acrobats and wrestlers.

The city does have many green oases of calm however, and UK buyers have been investing in traditional Moroccan riads - a house built around an inner courtyard garden - around the city. Marrakech is being tipped as an excellent all-year round rental invest- investment because of its weather, culture, sites, shopping, and ease of access now budget airlines such as easyJet and Ryanair fly here. It's also now on the map for golf lovers -the green fees are around a third of what you would pay in Spain.

Increased accessibility
Buyers who are looking for rental returns are taking advantage of up to 85 per cent occupancy rates thanks to increased accessibility and a fantastic year-round climate.

A high quality two-bedroom apartment on the Mediterranean coast can be rented for between £200 to £500 per week depending on the time of year, while a luxury three-bedroom riad in Marrakech can command anything up to £190 per day.

The transformation of Morocco is happening incredibly fast and it's already on the international jet-set luxury circuit - Mick Jagger and Richard Branson own property here, and if you fancy having a premiership footballer as your neighbour, you know where to come!


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