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Analysis: Is Tangier the new Dubai?
Author: Trevor Lloyd-Jones
Source: BI-ME
Published: 16 November 2006
MOROCCO. Real estate in Morocco is booming, and Tangier in particular is seen as a golden opportunity, with economic trends, low cost airlines as well as Gulf money, all working together to drive up prices. Foreign residents in Morocco are increasingly attracted to the low cost of living, old architecture, natural scenery and high return on real estate investments.
In recent years, owning a second home in Morocco has become fashionable for Europeans. This is one trend has led to major price increases - from a low base - for Moroccan property, according to the property agency Direct Morocco.
King Mohamed VI and a consortium of private companies have taken a leaf out of Dubai’s book and joined forces to capitalise on Morocco’s strategic position between the European and African continents. By 2010 they will have transformed Tangier on Morocco’s Northern peninsula into one the most important Free Zones in the world and the main trade gateway to more than 600 million people across Europe, West Africa, North Africa as well as North America.
As Morten Skjelborg of Direct Morocco explains: “Morocco is a country that’s changing fast. Tangier is the epitome of this change. The King and the team behind Dubai’s rise to prominence have secured over US$1 billion of private investment to develop the region into a modern, forward-thinking place with the kind of high-tech infrastructure that goes with it. If you’re looking to buy a foreign property as either a sound investment or as a holiday retreat, there simply is no better place than Tangier. And now is absolutely the time to buy before prices soar.”
The Tangier Exportation Free Zone is a protected free trade environment where companies from around the world can operate tax free in a vast area of 345 hectares. It incorporates a container port at the junction of the biggest maritime routes in the world with the capacity to handle both cargo and passenger ships; the expansion and improvement of Tangiers International Airport, road and rail networks; the complete renovation of Tangier’s historic old port which will become a pleasure port for yachts and cruisesliners.
Also under development in Tangier are six new world class holiday resorts with four- and five-star hotels, holiday villages, nature trails and cultural attraction sites including a Kasbah, restaurants and shopping centres in the coastal Ghandouri tourism area; plus the controlled construction of quality apartments, townhouses and villas to house the increase of both workers and tourists coming to the region. This mammoth undertaking is estimated to create 145,000 jobs by the year 2020.
Founded in the fourth century BC by the Phoenicians, Tangier is the oldest city in Morocco and is considered by the Moroccan people to be their doorway to the world. At just 15 kilometres from the tip of Southern Spain it is unequivocally a Mediterranean city, not just for its geographical location, but also its rich history, tradition and cultural influences. Like its near neighbour Spain’s Costa del Sol, it enjoys mild temperatures in the Winter and non-stop sunshine in Summer.
At just three hours flying time from the UK, it’s already becoming an ideal destination for both weekend breaks or longer stays and attracts a large number of tourists year round. As such, Low-cost airlines such as easyJet have obtained permission to begin flying direct from airports in the UK. The Spanish and Moroccan governments have also commissioned preliminary engineering studies to build a rail tunnel under the Straits of Gibraltar linking the two countries.
Construction of the Tangier Exportation Free Zone is already well underway and the majority of the work is expected to be complete by 2010. “The Moroccan authorities have put strict environmentally sensitive measures in place to prevent the kind of over supply of property we have seen in other developing areas,” Direct Morocco’s Morten Skjelborg points out. “It really does represent a fantastic opportunity for investment in overseas property. At the moment, you can still buy a beachfront apartment for as little as £60,000 [US$110,000].”
Increases at all price levels
Mohamed Adil Bouhaja, President of the Association of Estate Agents in Marrakech, says that European demand includes all areas of the market at all price ranges.
Nuredin Al-Sharqani, Director of Al-Oufa Property, says foreign demand for Moroccan property has helped make locals aware of their country's land value. He says the current prices are not actually exaggerated and that Moroccans had undervalued their land.
"Our real estate market has become incorporated into the international market and the comparison that investors are making is not only between cities and regions side by side in Morocco, but also with the markets of competing countries," said Al-Sharqani. He added: "I believe that this is still the beginning and prices will continue to rise, at least until we reach the level of prices in the South of Spain, which underwent the same kind of development."
Al-Sharqani said that Moroccans living in France had originally been the major target for exhibitions and marketing activities, but in fact foreigners surpassed the interest from Moroccans and this has emerged as a clear trend.
Three categories of foreigners are buying Moroccan property. The first includes expatriates who work in Morocco. Although most rent, some purchase flats or villas as an investment, as they can almost always sell them for a higher price once their stint in Morocco ends. The second group includes foreigners who know Morocco through tourism or work and have acquired a holiday home. Many lease their properties while abroad. The third group are retirees.
Mustapha Al-Zein, Secretary General of the Frankfurt Society of Notaries, traces the origin of foreign property investment in Morocco to the late 1980s.
He says: "It began in Marrakech. This was because the former monarch Hassan II spent much time there for health reasons. The King received guests from all over the world, which gave prominence to Marrakech, considered the only oasis North of the Atlas Mountains. The growth of tourism in Marrakech generated foreign interest and many internationally-known public figures acquired luxury properties in Marakesh and its outskirts."
A significant change has emerged in recent years, says Al-Zein, as European interest in Marrakech property is no longer confined to the elite.
He said: "An increasing number of European retirees and those seeking a healthy place to spend their golden years are purchasing houses in Marrakech. Land is cheap compared with their home countries. Also, there are modern conveniences in terms of telecommunications, transportation, and shopping, in addition to the captivating natural setting and the interesting features of our culture and society."
Analysis: Is Tangier the new Dubai?
Author: Trevor Lloyd-Jones
Source: BI-ME
Published: 16 November 2006
MOROCCO. Real estate in Morocco is booming, and Tangier in particular is seen as a golden opportunity, with economic trends, low cost airlines as well as Gulf money, all working together to drive up prices. Foreign residents in Morocco are increasingly attracted to the low cost of living, old architecture, natural scenery and high return on real estate investments.
In recent years, owning a second home in Morocco has become fashionable for Europeans. This is one trend has led to major price increases - from a low base - for Moroccan property, according to the property agency Direct Morocco.
King Mohamed VI and a consortium of private companies have taken a leaf out of Dubai’s book and joined forces to capitalise on Morocco’s strategic position between the European and African continents. By 2010 they will have transformed Tangier on Morocco’s Northern peninsula into one the most important Free Zones in the world and the main trade gateway to more than 600 million people across Europe, West Africa, North Africa as well as North America.
As Morten Skjelborg of Direct Morocco explains: “Morocco is a country that’s changing fast. Tangier is the epitome of this change. The King and the team behind Dubai’s rise to prominence have secured over US$1 billion of private investment to develop the region into a modern, forward-thinking place with the kind of high-tech infrastructure that goes with it. If you’re looking to buy a foreign property as either a sound investment or as a holiday retreat, there simply is no better place than Tangier. And now is absolutely the time to buy before prices soar.”
The Tangier Exportation Free Zone is a protected free trade environment where companies from around the world can operate tax free in a vast area of 345 hectares. It incorporates a container port at the junction of the biggest maritime routes in the world with the capacity to handle both cargo and passenger ships; the expansion and improvement of Tangiers International Airport, road and rail networks; the complete renovation of Tangier’s historic old port which will become a pleasure port for yachts and cruisesliners.
Also under development in Tangier are six new world class holiday resorts with four- and five-star hotels, holiday villages, nature trails and cultural attraction sites including a Kasbah, restaurants and shopping centres in the coastal Ghandouri tourism area; plus the controlled construction of quality apartments, townhouses and villas to house the increase of both workers and tourists coming to the region. This mammoth undertaking is estimated to create 145,000 jobs by the year 2020.
Founded in the fourth century BC by the Phoenicians, Tangier is the oldest city in Morocco and is considered by the Moroccan people to be their doorway to the world. At just 15 kilometres from the tip of Southern Spain it is unequivocally a Mediterranean city, not just for its geographical location, but also its rich history, tradition and cultural influences. Like its near neighbour Spain’s Costa del Sol, it enjoys mild temperatures in the Winter and non-stop sunshine in Summer.
At just three hours flying time from the UK, it’s already becoming an ideal destination for both weekend breaks or longer stays and attracts a large number of tourists year round. As such, Low-cost airlines such as easyJet have obtained permission to begin flying direct from airports in the UK. The Spanish and Moroccan governments have also commissioned preliminary engineering studies to build a rail tunnel under the Straits of Gibraltar linking the two countries.
Construction of the Tangier Exportation Free Zone is already well underway and the majority of the work is expected to be complete by 2010. “The Moroccan authorities have put strict environmentally sensitive measures in place to prevent the kind of over supply of property we have seen in other developing areas,” Direct Morocco’s Morten Skjelborg points out. “It really does represent a fantastic opportunity for investment in overseas property. At the moment, you can still buy a beachfront apartment for as little as £60,000 [US$110,000].”
Increases at all price levels
Mohamed Adil Bouhaja, President of the Association of Estate Agents in Marrakech, says that European demand includes all areas of the market at all price ranges.
Nuredin Al-Sharqani, Director of Al-Oufa Property, says foreign demand for Moroccan property has helped make locals aware of their country's land value. He says the current prices are not actually exaggerated and that Moroccans had undervalued their land.
"Our real estate market has become incorporated into the international market and the comparison that investors are making is not only between cities and regions side by side in Morocco, but also with the markets of competing countries," said Al-Sharqani. He added: "I believe that this is still the beginning and prices will continue to rise, at least until we reach the level of prices in the South of Spain, which underwent the same kind of development."
Al-Sharqani said that Moroccans living in France had originally been the major target for exhibitions and marketing activities, but in fact foreigners surpassed the interest from Moroccans and this has emerged as a clear trend.
Three categories of foreigners are buying Moroccan property. The first includes expatriates who work in Morocco. Although most rent, some purchase flats or villas as an investment, as they can almost always sell them for a higher price once their stint in Morocco ends. The second group includes foreigners who know Morocco through tourism or work and have acquired a holiday home. Many lease their properties while abroad. The third group are retirees.
Mustapha Al-Zein, Secretary General of the Frankfurt Society of Notaries, traces the origin of foreign property investment in Morocco to the late 1980s.
He says: "It began in Marrakech. This was because the former monarch Hassan II spent much time there for health reasons. The King received guests from all over the world, which gave prominence to Marrakech, considered the only oasis North of the Atlas Mountains. The growth of tourism in Marrakech generated foreign interest and many internationally-known public figures acquired luxury properties in Marakesh and its outskirts."
A significant change has emerged in recent years, says Al-Zein, as European interest in Marrakech property is no longer confined to the elite.
He said: "An increasing number of European retirees and those seeking a healthy place to spend their golden years are purchasing houses in Marrakech. Land is cheap compared with their home countries. Also, there are modern conveniences in terms of telecommunications, transportation, and shopping, in addition to the captivating natural setting and the interesting features of our culture and society."
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