The magic of Marrakesh

Mention Marrakesh and most people will think of an exotic place full of travellers and traders, a place with a real buzz and plenty of culture with minarets, mosques, souks and carpet-sellers. It is easy to see why Marrakesh is so alluring, and it is this attraction that is marking it out as a good place to buy for overseas investors.

The housing market in the area is buoyant with prices having gone up by around 50% in two years. For those looking to buy or move to Marrakesh, it has a reputation as being a very tolerant Muslim state although there are some concerns over terrorism in the area. Traditional Moorish houses called riads are incredibly popular, and buyers should expect to spend around $400,000 Euros on a small riad.

There are also plenty of new developments springing up on the outskirts ā€“ tending towards luxury villas, most offer private pools and are tailored towards wealthy professionals and overseas property investors. The majority of these luxury developments go to foreign buyers therefore if you are after a real taste of culture, you would be best buying further in. Many of these luxury villas command a higher price than the traditional riad ā€“ prices start from around $900,000 although prices will vary from development to development.

Rentals in the area are hard to predict although there are some schemes which allow a guaranteed rental return for two year periods. Tourism in the area is increasing and King Mohammed is hoping that by 2010, 10 million tourists will visit the country a year. This all bodes well for the rental market, particularly with budget airlines looking to fly into the country.

If you are looking to buy, foreigners can generally borrow two thirds of the property purchase price from a Moroccan bank. If you require more than this, it is worth checking with banks in your home country to see if they will lend to you. Any property bought in Morocco can be sold at any time, although capital gains tax at 20% will be due. Foreigners are positively encouraged to buy to help boost tourist numbers.

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  1. From Government reforms good for Moroccan property market - Buying Foreign Property | Feb 22, 2008

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