Thinking of buying a property in Morocco? Then you need to read our useful guide to buying a property in Morocco. Complete with useful country information and links to estate agents’ websites and an insight into the buying process of acquiring a property in Morrocco.
In the 21st century, Morocco is the country on the African continent that is experiencing one of the fastest growing and fastest-paced real estate markets in the region. There are a number of reasons why this is the case, chief amongst them is the fact that Morocco has enjoyed relative stability for an extended period of time. In addition, the climate in many parts of the country is very appealing to people from many different countries around the world.
With the brisk business that is being conducted in the Moroccan real estate market, many foreign nationals have invested in the country’s real estate. Foreign nationals have been found to be investing in commercial real estate as well as in vacation properties.
Further, some foreign nationals — particularly those from France — have invested in second homes in Morocco. (France has a long association with Morocco, the Kingdom of Morocco having once been a French colony.
Investment Property in Morocco
As references, foreign nationals have been active investors in the Moroccan real estate market. Foreign nationals can be found holding all types of real estate in the Kingdom, including commercial, industrial and residential properties of different varieties (including vacation real estate).
On balance, investments in Moroccan real estate have proven to be sound and solid investment. The value of the real estate in Morocco has increased steadily over time. There has not been an overheating of the market in Morocco as has been experienced in some countries around the world.
When a market overheats, the end result usually tends to be a collapse of the real estate market at least to some degree.
Residential Property in Morocco
Some foreign nationals have taken to purchasing single-family residences in Morocco. The majority of these foreign nationals that do purchase single-family dwellings are from France — again, because of the historical association between the Republic of France and the Kingdom of Morocco.
There has been a noticeable uptick in the past decade in the number of non-French foreign nationals who have taken to purchasing single-family residences in that country. Primarily, these foreigners are buying these single-family properties for holiday purposes.
These second residences are being bought because many people have learned how lovely the climate is in many parts of Morocco.
Residential Real Estate – Apartments in Morocco
The Moroccan government has taken some pretty aggressive steps in attracting foreign commercial interested into the country. In this regard, the trade in apartments in the commercial centers of the country has been brisk since the turn of the century. More often than not, foreign nationals that have been found investing in this type of real estate are doing so because they need more long-term residences in the country while they are involved in some sort of commerce-based project.
Some foreign nationals have taken to developing apartment buildings and complexes which they are then in turn leasing to other foreign nationals who find themselves in Morocco for extended stays due to business-related obligations. This has proven to be a fairly lucrative venture for many of these foreign nationals.
Again, the French have been leading the way in this type of investment and development. However, other foreign nationals are becoming more involved in this type of development and ownership as the country continues to work at bringing more foreign business, investment, and capital into the Kingdom.
There are also a growing number of foreign nationals who have invested in apartment complexes and buildings in hopes of attracting some of the tourist trade that ventures into the Kingdom annually.
Many visitors intend to stay in the country for an extended period of time on holiday, making an apartment a very attractive housing option while visiting Morocco.
Holiday Property in Moroccan Holiday Resorts
During a couple of decades, a growing number of people have taken to spending holidays in the Kingdom of Morocco. Indeed, the government of the country has made a concerted effort to attract tourists to the country. Attracting tourists has become a primary concern of the government since the dawn of the 21st century.
With this in mind, there has been a significant demand for vacation real estate in the Kingdom. Many foreign nationals are buying real estate for vacation purposes in different regions of the country. In this regard, a majority of these foreign nationals are purchasing this type of real estate for their own usage. Foreign nationals for an array of different countries have taken to spending extended vacations within the Kingdom of Morocco.
In addition to purchasing vacation real estate of a foreign national’s personal use for holiday travel, some foreign nationals have come to understand that there is money to be made through the ownership of real estate that can be used for holiday and vacation purposes.
Thus, a significant number of foreign nationals have purchased vacation real estate throughout the Kingdom which they, in turn, are leasing and renting to other people for use during holiday stays in the country.
For some foreign nationals, this type of investment has proven very lucrative, particularly in light of the concerted effort that the government of the Kingdom is making to attract visitors and tourists to the country.
Specific Steps to Buying a Property in Morocco
Over the course of the past decade, the government of Morocco has worked to attract more foreign investment to the country, including efforts to encourage more foreign nationals to purchase and invest in property in the Kingdom of Morocco.
To this end, the government of Morocco has taken pains to simplify the process through which foreign nationals can purchase and take possession of the property in the Kingdom.
In short, the government is committed to encouraging an infusion of foreign investment and capital into the Kingdom. Naturally, a more liberal course of foreign ownership of real estate plays a vital role in enhancing the overall activity of foreign investors in the economy of Morocco.
In Morocco, as in many nations around the globe in this day and age, the first step in purchasing property in the Kingdom of Morocco is the making of a verbal offer by the potential buyer to the seller. More often than not, the oral indication of intent to purchase of conveyed from the potential buyer to the seller through an agent.
Agents do play pivotal roles in the buying and selling of real estate in Morocco. Indeed, it is a rare real estate transaction that does not involve the services of a real estate agent.
If the seller accepts the offer or propounds a counteroffer that ends up being accepted in turn by the potential buyer, a preliminary contract is drafted. Normally, in Morocco, this document is the handiwork of a lawyer. There are standard forms that can be utilized for this purpose. However, most foreign nationals indicate that they feel more comfortable having an individual and specific agreement drafted by a qualified lawyer.
Following the execution of this preliminary agreement, the buyer is involved in obtaining financing for the real estate purchase. The seller is occupied working to make certain that there are no encumbrances on the property that might impair the ability of the seller to convey the property to the buyer when the real estate transaction moves to a conclusion.
At the point in time that this initial contract is executed, the buyer is obliged to put a deposit on the real estate. Generally, the deposit is in the amount of upwards to 30% of the total purchase price of the real estate that is the subject of the transactions.
In some instances, a buyer will have up to thirty days from the date that the initial contract is signed to post the deposit required by the terms and conditions of that agreement. The balance will be done at the time that the final agreement is executed between the parties to the sale.
There are some mortgage lenders doing business in the Kingdom that cater specifically to foreign nationals that are interested in buying real estate in the country. By using such a mortgage lender, many foreign nationals have found completing the real estate purchase process in Morocco to be an easier process overall.
In order to consummate the sale, it is necessary for a foreign national to open a bank account within the Kingdom of Morocco.
Ultimately, the parties to the real estate transaction will execute a final contract that will result in the conveyance of the real estate from the buyer to the seller. At this time, the property is registered with the government of the Kingdom and the buyer becomes the owner of the record of the real estate in question.
Generally speaking, the registration process can be consummated in a pretty short amount of time. In most instances, this phase of the property buying process normally can be wrapped up and concluded within a matter of days
ABOUT THE AUTHOR: Les Calvert