Morocco's 'Azure Plan and Vision 2010' was announced in 2001 by the country's new King Mohammed VI and intends to increase tourist numbers into the country from two million to 10 million by 2010 through developing major tourism property development projects. Included in Vision 2010 is the development of six major resorts on 600 to 1,000 hectares, with golf courses and amenities.

Since 2001 Morocco's Azure Plan market has grown by around 50 to 75 per cent with the first new properties being launched two years ago. New developers moving into the market include local companies and developers from Dubai and Europe.

The average property price in Morocco is currently between £100,000 to £125,000; however the market caters for the £50,000 budget as well as luxury multi-million pound properties. There are a variety of types of property available in the Azure Plan including apartments and villas.

Paul Staines has three off-plan apartments in the town of Saidia, the Playa Vista development in Tangiers and at Sunset Beach just south of Casablanca. "There is a risk in buying outside Morocco's Azure Plan resorts, use your due diligence and research the developers well," he says. "There are a number of large and established developers operating outside of the Azure Plan; it is the smaller and lesser known developers and agents that you really have to do your research on."

The process of buying a new build property in Morocco is similar to that of European countries; a reservation contract must be signed and the title deeds, signed at the local notary, are handed over on completion and full payment. Mortgages are available subject to status, and loans of up to 70 per cent are common and interest rates range from 5.5 per cent to 6.5 per cent. However, as the country is a relatively new market it does not have bank guarantees.

Taxes for completion are around five per cent for stamp duty, land registration and notary fees. Capital gains tax is 20 per cent on profits over €£60,000 and after five years that goes down to 10 per cent and after ten years there is no capital gains tax as it is rated at 0 per cent. If you are planning on renting out your property once it is completed there is no rental tax for five years and no inheritance tax if you leave your property to a family member.

Morocco is also becoming more accessible to foreign tourists. Ferries are available from Gibraltar and Algeciras in southern Spain and three hour flights are fly from Britain's most popular. The Open Skies agreement, which started in Morocco at the beginning of the year, will also open the country up to low cost airlines. Similar to the Channel Tunnel, Swiss engineering firm Lombardi has recently won the contract to design the railway tunnel between Europe and Africa running under the Strait of Gibraltar which will allow a continuous rail link between the north of Scotland and Africa.

A ground floor investment opportunity on Mediterranean Saidia Bank in Morocco is currently available from £79,000 through Saffron Villas. Guaranteed and built by FADESA these two to three- bedrooms, two to three-bathroom freehold properties include fully furnished living areas, branded white goods and plasma TV entertainment centres.

New Moroccan beach resort Sunset Beach Club, Casablanca also offers investors and second home seekers a great opportunity; to buy front-line homes on one of Morocco's finest Atlantic beaches. These two-bedroom two-bathroom beach front properties range in size from 111 square metres to 147 square metres and the spacious three-bedroom penthouses come with roof top solariums served by their own shower room and toilet. All properties will be fully furnished and include air-conditioning and start from £62,000.

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Article published on 17 January 2007