Maroc UA MARKET REACHING SATURATION POINT In the wake of a high-profile government- backed tourism policy and extensive domestic media coverage, the Moroccan property sector has enjoyed impressive growth in recent years. Entire regions, such as the north of the country, which had been neglected for years, have seen property development increase by 100%. Enormous development projects are underway comprising thousands of lots for some developers.

Morocco has changed in just a few years from an artisanal small-scale approach to property development, an approach which was perfectly suited to market conditions, to industrial scale production and this has had damaging results: a supply glut and over inflated prices. Moreover, build quality and amenities have not been up to scratch.

There has been too much of the same kind of property: more 150 to 500 hectare developments of villas, apartments or hotels on the edge of golf courses. In Marrakesh in particular, many projects of this type are under construction. Thousands of villas and apartments and nigh on 20 golf courses. That’s more than in the whole of the Cote d’Azur, from Monaco to St Tropez.

These types of development are looking less attractive and potentially dangerous when you factor in build times of 4 to 8 years. In view of the current Moroccan regulations and laws governing property construction and sales, it is uncertain whether in the event of a financial crisis all these projects would be finished and delivered in line with initial agreements. Many have entered this market too late and will experience severe problems.

In the context of the approaching economic downturn and the very real attendant risks, future buyers are advised to remain vigilant and to make it their business to find out whether a developer has the ability to see a project through. What’s more, buyers should be certain that the development is sufficiently well structured to deliver on promised amenities and services.