A frequent fear of many overseas buyers is that as economic conditions tighten it will become harder to make a rental return from their investment. Whilst this may be true in certain overhyped destinations such as Bulgaria and Dubai it certainly isn’t true in Morocco.

Since colonial times the French influence remains strong

This is because tourist numbers to Morocco are dominated by the French who make up nearly 70% of all arrivals and France is currently the only eurozone country still experiencing growth in the last quarter. Even if the French economy takes a downturn the level of state benefits is such that most families will continue to holiday as normal and the opening of ever cheap ways to travel between the two countries will enhance this further.

Recent evidence from the UK also suggests that Morocco is well placed to benefit as respondents to a survey suggested that it would be the traditional “bucket and spade resorts” on the Costas which would be worst hit as they were perceived as the most overpriced. Morocco was viewed favourably as it offered an exotic destination with value for money – a combination most travel industry experts believe will become increasingly attractive in the future.

The economy of Morocco is the “most interesting in North Africa in terms of growth potential,” said Dominique Gautier, a partner in the Munich-based “Roland Berger Strategy Consultant” which has an office in Casablanca, Morocco.

Moroccan Finance minister Salaheddine Mezouar

Gautier who explained to “The Financial Times” the reasons behind opening a branch in Morocco noted that Morocco offers great opportunities for consulting companies. Roland Berger Strategy Consultants is one of the world’s leading strategy consultancies with 36 offices in 25 countries, the company has successful operations in all major international markets.

“As well as helping local companies such as Royal Air Maroc with their ambitious pan-African strategies, the consultancy has just finalized a new sports strategy for the kingdom of Morocco,” Gautier said.

The FT stressed that international consultancies are reporting steady or strong growth in their African businesses, adding that only China receives more investment than the MEDA countries (in which Morocco is a major partner).

Jardin de Fleur, the leading developer in Saidia, has today announced the signing of an agreement with Golden Tulip to operate the resort previously know as RT-7 Les Jardins du Maroc. These extremely spacious two, three and four bedroom penthouses and apartments in Saidia are intelligently arranged around the perimater of the resort with the focus in the centre being on the impressive facilities for owners; including a heated swimming pool, restaurant and bar, amphitheatre, tennis court, solarium and children’s area.

The Golden Tulip Residences

Hans Kennedie, CEO of Golden Tulip added, “The Tulip Residences will offer fully serviced, tastefully furnished properties that combine luxury and elegence with all the comforts you could wish for. Saidia is a fantastic location with immense potential.”

Who are Golden Tulip?
Based in Lausanne Switzerland, the Golden Tulip Hospitality Group operates more than 780 hotels worldwide in more than 50 countries. They operate across the range of hotel categories but in Saidia they are operating under their Tulip Residences four star brand with superior first-class service. The Residences are designed to be a home from home and more personal and spacious than traditional hotel rooms.

What are the advantages of buying with Le Jardin de Fleur?
As a buyer on one of the Jardin de Fleur resorts you benefit from probably some of the best leaseback deals available in the world today. They have contracted established and reputable hotel operators such as Radisson and Best Western to provide rental clients for their apartments - giving you the benefit of a massive marketing budget and client database. So as you can see this is one resort that won’t just take your money and leave you to get rental clients yourself, indeed the proactive approach taken by the developer is just one reason that Moroccan Sands recommends Le Jardin de Fleur above others in Saidia.

For more information about Le Jardin de Fleur and Saidia go here

The Times Newspaper today reported that investors who have lost faith in the banking system are turning to property as a safe haven for their cash.

Estate agents have identified a growth in interest from cash buyers, who want something tangible for their money rather than depositing it with banks they no longer trust.

The trend is emerging in all corners of the property market, according to one nationwide agent, from high-end mews houses in Knightsbridge to dilapidated two-up two-downs in the East Midlands.

Lindsay Cuthill, head of the southwest London office of Savills estate agents, said: “Ten days ago a wealthy, well-known businessman seeking to buy a mews in Chelsea told me, ‘I feel my money is safer here than in the banks’.”

Many investors are also looking at countries like Morocco, largely immune from the present troubles in the financial system, as a “safe haven” for their investments. Michael Kent, Managing Director of leading Moroccan property company Moroccan Sands commented “We’re seeing an increase in enquiries from established investors who recognise that their money in safer in bricks and motar in Morocco than an Icelandic bank.”

“In constrast to the UK housing market, property in Morocco is rising in price and mortgages are freely available from the major Moroccan banks. So if you’re looking for a profitable long term investment the Moroccan property market looks extremely tempting at present.”

Markets such as Saidia on the Mediterranean coast and Tangier at the mouth of the Straits of Gibraltar are especially recommended as they are developing rapidly due to their geographical advantages and in both cases they are backed by massive private and public investment from which the individual investor can benefit.

In an article by Heba Saleh in The Financial Times of London recognised that Morocco and its economy are remarkably immune from the troubles caused by the banking system and credit crunch in countries around the world. Despite being the only nation in the Magreb without its own oil or gas Morocco nonetheless appears to have managed to maintain economic stability in the face of global inflation.

“The numbers this year are certainly showing the very great resilience of the Moroccan economy in the context of international turmoil.” said Frances Clottes head of the World Bank in Morocco.

Despite the continuing reliance on agriculture for employment, increased revenue has come from tourism and corporate tax receipts – which rose 70% due to the higher level of investment in the country.

“From 1996 to 2004 nothing was happening in the economy,” said a Moroccan investment banker. “But starting from 2005 things started to improve thanks to all the public investment in infrastructure and the private investment in real estate and tourism.”

The most notable overseas investment has come from Renault which is putting $1 billion into a new manufacturing plant just outside Tangiers adjacent to the Tangier Med Port and inside the Free Trade Zone. When complete the Port alone will generate around 100,000 new jobs and will be the largest such facility in the Mediterranean.

The deal on its own is significant but ambitious locals are seeking to use this recognition by an internationally respected corporation to attract many other companies to the area, especially those in the aeronautical and automotive industries.

This all great news for people who have already invested in property in Tangier as the unique combination of Morocco’s economic stability and the attraction of the Free Trade Zone in Tangier look likely to attract significant levels of further investment. All analysts foresee a continuation of property price growth as the wealth created spreads through the Moroccan professional classes and expat managers look for “western standard” accommodation in Tangier.

Source: The Financial Times : Oct 2^nd 2008

The new Moroccan container terminal, 30km outside Tangier, Eurogate Tanger on Wednesday handled its first containership ahead of the start of regular liner services next month.

The first ship at the facility was the massive 8,488-TEU CMA CGM Otello, which discharged five disassembled Kalmar rubber-tired gantry cranes (RTGs).

The first regular service to call at Eurogate Tanger will be kicking off on Oct. 8 2008 with CMA CGM La Traviata, another 8,488-TEU ship. The terminal has 450 meters of quayside and five container gantry cranes. By the end of the year, the quay length will be extended to 810 meters and three more container gantry cranes will arrive in January 2009.

“Although the official opening ceremony of Eurogate Tanger will not be until spring next year, we will be fully operational by the end of this year. We are now starting to handle ocean carriers and will soon increase the number of services,” said Domenico Bagalà, president of the management board of Eurogate Tanger.

Eurogate Tanger is a joint development between German container terminal operator Eurogate and major European shipping lines Mediterranean Shipping Co., Zim and CMA CGM, together with its Moroccan subsidiary Comanav. It will be the major engine for economic growth in the Tangier region and is estimated to create over 100,000 new jobs directly and many more indirectly. Several new large scale manufacturing concerns have already moved to the area to take advantage of the port facilities and the adjacent Free Trade Zone (which allows import and export without tarriffs) including Nissan Renault and Airbus Industries.

Michael Kent of Moroccan Sands added ” The new port will revolutionise Tangier and inject much needed wealth into the local economy. This will undoubtedly have an upward impact on Tangier property prices as expats and middle class Moroccans enter the market. Indeed, in our opinion, this is what makes Tangier such a geat investment - not only are you investing in a city with caché but the growth is based on real economic factors and not reliant on the holiday rental market.”

The amazing new beachfront resort at Mediterrania Saidia received another vote of confidence from some of the top brands names in the travel industry. The endorsement of Saidia’s potential comes on top of the existing commitments by the SAS Radisson chain and David Lloyd Tennis Academies, amongst others.

Not only does this mean Le Jardin de Fleur investors will enjoy all the facilities of the hotel-operated
resorts such as clubhouses, swimming pools, restaurants and spas, but they will also benefit from a
leaseback system that enables them to earn rental income generated from the year-round hotel
occupancy.

The superior sector of the world’s largest hotel chain, Best Western Premier, is set to manage the formerly named Sur Mer resort (RT-2) which will now be known as the Best Western Premier Le Jardin de Fleur, featuring 126 luxury apartments and penthouses. This manoeuvre gives Le Jardin de Fleur owners access to a worldwide reservation system plus independent marketing through the brand’s international networks and associates. The endorsement of such a well respected name for the Sur Mer apartments is sure to make these exclusive apartments on of the best investments in Saidia property.

“The Best Western Premier hotel brand was launched to provide a higher level of service and amenities together with a characterful dimension. This resort will add to a network of more than 100 Best Western Premier hotels currently located throughout Europe and Asia. We are very proud to be part of the development of the Saïdia resort project, one of the major plans to develop tourism in the country” said Stephane Cremel, Director of Development for Best Western in Morocco. The Best Western Premier Le Jardin de Fleur (previously known as ‘Sur Mer’) will feature 126 luxury apartments and penthouses and is scheduled to open in 2009.

The Best Western Premier Le Jardin de Fleur resort will offer a lagoon swimming pool, family entertainment, spa, themed restaurant & café-bar, and clubhouse set within landscaped Moroccan gardens, just minutes walk from the beach and golf course. The chain’s powerful global marketing and reservations network will enable the Saïdia destination to maximize on opportunities in the ever growing short-stay and longer-stay leisure markets.

In addition to this, Le Jardin de Fleur signed a management agreement last week with the Marrakech-based luxury hotel operator Hivernage, part of the Great Hotels of the World Group. The Hivernage Resort & Spa (formerly known as “Villas du Soleil”) will feature 76 villa residences with their own private pool, and will open in 2010. Enjoying a tranquil beach and golf position the resort will feature outdoor and indoor lagoon
pools, Moroccan spa, French brasserie, clubhouse and tennis courts.

In recent years, Morocco has emerged as leading hotspot for overseas property investors. Nowhere is this more apparent than in the atmospheric port city of Tangier, where large-scale property developments are changing the skyline of the eastern part of the city.

La Perle de Tangier: Ideal buy-to-let apartments

Happily, for lovers of traditional Moroccan attractions, the new Tangier property developments are well away from the much visited souks, kasbah and medina which are clustered on the hills, close to the port in the central area of the city.

However, the eastern edge of Tangier, a few blocks inland from the golden crescent of sand which is Tangier bay, is currently seeing a boom in new mixed use developments. Much of this frenetic building activity can be attributed to the interest of overseas investors who have identified Tangier as the perfect low cost, buy-to-let destination.

Just a short hop by high-speed ferry from mainland Spain and the British enclave of the Costa del Sol, Tangier has benefitted from the overheating of the Spanish property market, the boom in tourism and influx of big businesses such as Renault and Nissan who have been attracted by the low production costs in Morocco.

This has resulted in an increasing demand for western standard property from Morocco’s new business elite and the swelling expat community who have been drawn to the city by Tangiers’ laid-back lifestyle, low cost of living and pleasant, year-round climate.

One of the most prominent new developments is La Perle de Tangier, a mixed, residential, office, hotel and retail project. Two bedroom apartments at La Perle which come with hydro massage baths, internet access and superb sea views can be bought for around £129,000 (GBP).

Furthermore, the Spanish developer is now selling units with a guaranteed rental of 7% for two years. The guarantee is conditional on the owner purchasing a furniture pack which for a two bed unit is only £2,550.

Apartments at La Perle have proved extremely popular with investors on buy-to-let strategies, and this new rental offer can only add to their appeal.

Morocco Property Report – 19th September 2008

Morocco is immune to the sub-prime meltdown, claims minister…

Economy and Finance Minister, Salaheddine Mezouar said on Thursday that Morocco is immune to the sub-prime meltdown affecting many countries. He asserted that for several reasons, notably the fact that Morocco’s financial sector doesn’t hold loans or securities in financial institutions or international investment funds affected by sub-prime lending.

Crisis, What Crisis?

Addressing a cabinet meeting on the recent developments of the nation’s economy and the international environment, Mezouar said that Morocco property loans in are mainly of the fixed interest variety with the possibility for variable interest rate loan beneficiaries to opt for fixing rates under well regulated and predictable conditions.

“The financial status of Moroccan banking institutions has shown significant improvement in recent years, mainly thanks to the tightening-up of banking supervision and the stabilisation of the public financial sector”. The minister said, adding, “The upsurge in energy and food products had impacted on Morocco’s balance of payments and public finances”.

However, he stated, “Thanks to government support through the compensation fund, the effects of this upsurge has had negligible impact on our citizen’s purchasing power”. The minister concluded, “In real terms, GDP rose by 7% and 6.7% respectively in the first two quarters of 2008 which would allow for an estimated growth rate of 6.8% this year”.

Morocco Property Report 19th September 2008