Although traditional investments in the property market in Morocco have performed exceptionally well, those who purchased property off-plan (pre-construction) at a discounted price have achieved much higher returns.

Unlike the UK property market, when buying a property off-plan in Morocco you can, in some cases, reserve the property at a price which is well below the current market value. Reserving a property at around 40% below market value is not uncommon but where do you find these properties and why do they offer these price reductions?

The life cycle of a new development can be thought of as stages that a development goes through from planning to completion. Once the developer secures the land and completes the paperwork for planning, the project is then complete and approval to build is acquired from the relevant authorities. When that approval is granted, the developer arranges the finance for the project. Finally, the developer secures the contractual arrangements for the construction of the project and begins to market the properties to the initial investors.

In order to begin construction using the bank's finance, the developer will need to be able to demonstrate that around 50% of the development has already been reserved off-plan. This is where the off-plan investors come into the equation. By making a number of properties in the project available at discounted prices, the developer can quickly secure the sale of the initial properties required for the project to start.

During construction and as soon as the discounted units in the project have been reserved, the developer increases the price of the remaining properties in the project, bringing the price closer to the current market value. The prices of the remaining units are further increased at different stages of the development, gradually bringing the remaining property prices up to the real market value.

Additional price increases, reflecting the natural growth of the market during a two year construction period, further increases your returns.

It is extremely important that the right property is selected when investing off-plan in Morocco. It is not only important that you reserve the right property, but also in the right development and at the right price and with reputable developers.

In 1999, His Highness Crown Prince Sidi Mohammed was declared King of Morocco "His Majesty King Mohammed VI". After his enthronement, the King uncovered his ambitious development plans for Morocco.

In 2001, the Moroccan government presented Vision 2010 as Morocco's national tourism strategy (Azur Programme). The main objectives are to attract 10 million tourists to Morocco's coastlines and to create 600,000 jobs in the tourism industry by 2010. This forward thinking plan has been warmly embraced by the Moroccan people.

One particular development created by the Azur Programme, worthy of mention is Mediterrania Sa?dia , a project of 7,000,000m? with 6km of unspoilt coastline, 11 hotels, three 18 hole golf courses, a large marina (840 mooring points), several shopping areas and more than 3,000 accommodation units.

The development will be a meeting point of cultures, combining the exotic Mediterranean with a latest-generation holiday resort.

The climate in the north of Morocco is reliably dry. The average temperature in the summer is 29'C. The months between October and April are slightly cooler providing welcome winter sun.

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