The “Red City” of Marrakech – the second largest city in Morocco, after Casablanca, with an estimated population of two million – is situated to the southwest of the country, in the foothills of the High Atlas Mountains. The region experiences hot, humid summers – with an average maximum average temperature of 33 degrees Celsius, during June and September, and 38 degrees Celsius, during July and August – and mild winters. The Medina of Marrakech – the old city quarter – is a UNESCO World Heritage site, and features, amongst other attractions, the distinctive, Koutoubiya Mosque, dating from the 12th century, and Djemma el Fna, the central market square.

Property in Marrakech

The region of Marrakech offers a wide selection of property types, including townhouses and apartments, in new developments, or previously occupied, and, of course, “riads” – traditional Moroccan houses, or, indeed, palaces, with interior courtyards and gardens – newly built, or newly renovated.

Popular locations for property investment in, and around, Marrakech include “El Oasis de Marrakech”, in the city itself, close to the Medina, and just 15 minutes’ drive from Marrakech-Menara Airport, located four miles to the southwest, and “Les Terrasses du Soleil”, a new development of riads, townhouses and apartments, based around an 18-hole golf course, and a little more than two miles from Marrakech.

Mortgage loans, for the purchase of property in Marrakech, are available to foreign investors, although “loan to value” if often limited to 60%, and Moroccan mortgages, generally, tend to be more expensive than the British equivalents. It may also be possible, of course, to obtain a loan for a Moroccan property from a British mortgage lender. Bear in mind, too, that when it comes to selling a property, any profits will be subject to capital gains tax, at 20%, and, at least, 3% of the property value, if the property is sold within five years. Similarly, rental income, although exempt from taxation for three years, is then subject to a tax, between 22% and 40%, on 60% of the total.

Moroccan Economy

Morocco enjoys a stable, and growing, economy, still reliant, largely, on agriculture, but the Moroccan government has embarked upon a national development plan, known as “Vision 2010”, the principle objectives of which are to attract five times more visitors to Morocco, in 2010, than in 2002, to create 600,000 new jobs in the tourist sector, and to establish a close economic relationship with the European Union. Further developments include the construction, or upgrade, of motorways, airports, ports and marinas, and the introduction of high speed rail links, such that it is widely predicted that the Moroccan property market is likely to boom.