In turn prices in Moroccos have been driven up by the higher demand.
Just south of Spain, Morocco is experiencing the early stages of their very own property boom. While recent years have seen prices increase dramatically north of the Mediterranean and in Europe, Morocco is finally having its own day in the sun – and investors are taking note. Over the past year a large influx of foreign property investors and holiday home purchasers have come to Morocco in search of the next big market.
This increase in interest is compounded by a growing tourism industry which is helping to fuel the demand for luxury resort developments and second home communities. With an arguably better and more consistent climate than what is found in Spain, Morocco is enjoying the recent cash flow brought from foreigners as close as Spain and all throughout Europe in particular from the U.K.
The government currently has plans to shore up infrastructure efforts in preparation for a target goal of 10 million visitors per year.
Some of the appeal for Moroccan property is that prices at the moment are approximately 40% lower than most of mainland Europe. Although prices are low in comparison, they are quickly rising. With a stable capital growth rate in the area of 15% annually. The number of international investors is growing everyday.
Beyond the currently low prices, Morocco has some very investor friendly tax breaks such as:
• After five years capital gains tax is dramatically decreased
• After ten years capital gains tax are nonexistent
• During the first five years there are no property taxes
• No inheritance tax
With Morocco being in close proximity to all of Europe, it appears as though foreign investment will increase for roughly the next four to five years barring any disastrous events. Several large scale luxury developments from Middle Eastern groups are also currently in construction.
