Innovative land & property investments
Investment property in Morocco
Buying Guide
Buying Process
Political stability encourages strong price rises
Morocco is a very interesting place for property investment largely thanks to the politically stability speared by King Mohammed VI.
The price of land has trebled over the past five years and the figure most commonly quoted for annual property increases is 15%.
In addition, as the property regime is similar to that of the UK - leasehold and freehold - it is not too complicated to master and UK citizens are able to own property without restriction.
However, foreigners cannot buy land without the permission of the Government and beware of buying resale properties as many have no official title deed.
New and off-plan
Brand new or off-plan products are generally safer and more straightforward to take ownership of and the process is not too dissimilar from most sophisticated European countries.
Expect a deposit, reservation contract, followed by stage payments and full title deeds handed over upon completion, in exchange for the balance of funds, overseen by a notary.
The balance can be covered by a mortgage from a Moroccan bank, subject to status, and loans of up to 70% are perfectly feasible.
Alternatively re-mortgaging a UK property is another viable proposition.
Old properties
Negotiating on the price of an old property isn't likely to get you very far.
Most Moroccans are selling for the money and know that there are plenty of buyers where you came from so will hold out for the best price.
One trip to a souk will confirm that price negotiation is a strong character trait amongst the Moroccan people so don't act too keen or appear to be in a hurry or the asking price will rise before your very eyes.
Also, prepare for the worst; assume that you may have to walk away if another buyer appears on the scene offering a higher price.
Resale properties
Resale property purchase also has a two week cooling off period between preliminary contract and signing over the 10% deposit.
After this point, if you decide to back out, your 10% is lost, but if the seller decides to back out, your 10% is returned.
Key facts
- Political stability has encouraged strong price rises: land prices have trebled in the last five years and 15% is typical for annual property price increases
- The process is similar to the UK, with leasehold or freehold purchases available
- UK citizens can own property without restriction but need permission to buy land
- If buying a resale property, make sure it has an official title deed - many do not
- Resales come with a two week cooling off period between preliminary contract and signing over the 10% deposit, which is returned should the buyer back out
- Brand new or off-plan are generally safer and more straightforward to purchase
- With new or off-plan, expect a deposit, reservation contract, stage payments and full title deeds handed over upon completion in exchange for the balance of funds, which can be covered by a mortgage from a Moroccan bank or by the re-mortgaging of a UK property
- With older properties, remember that Moroccans are experts in the art of negotiation so don't appear too keen and be prepared to walk away
- Loans of up to 70% are possible
Downloadable Reports and Documents
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