In light of the recent partnership between Wafin and Remax Morocco created to help the Moroccan American community buy property in Morocco, we invited the CEO of Remax Morocco, Mr. Soufiane Elaamili, to answer a few question about Real Estate in Morocco.
1)
Can you give us a snapshot of the real estate market in Morocco now?
Everyone is worrying about a bubble much like the one we experienced
here in the U.S.
The
real estate industry in Morocco is doing very well because of the
demand of the local population for housing. In my opinion, the luxury
real estate market in Morocco and especially in areas like Marrakech
that experienced a fast demand and a high inflation in prices is the
only segment of the market that can be affected. Good quality housing
between 250,000 DHS to 400,000 DH is always on demand. There is also high
demand for low income housing from around 25K DHS to 40K DHS especially
in dense areas around the axe of Casablanca- Rabat. The North side of
the country is also thriving on real estate investments and
developments for all budgets. And lastly, you have real estate projects
along all the coast of the Atlantic ocean all the way to Dakhla.
Morocco has been and will continue to experience a steady economic and
social development and this makes a real estate investment a safe and
logical decision today.
2)
You have recently partnered with Wafin.com to provide real estate
services to their members. What kind of services are you equipped to
provide.
Our
goal is to become a one stop real estate services center for Moroccans
who would like to buy or sell a property or even follow a real estate
career with RE/MAX in Morocco. Our services extend from real estate
brokerage services with a broad offering of Apartments, Villas, Rental
Properties, Lands and Commercial Properties. We help Moroccans in the
US find the perfect real estate investment and assist them with the
buying process, financing, and even real estate management services.
On
the other hand, we offer Moroccan professionals with the opportunity to
start their own business back home by setting up their own RE/MAX real
estate agency. RE/MAX is currently recruiting future franchisees and we
are already getting a lot of interest from Moroccans in the US who are
familiar with RE/MAX and the level of professionalism that we offer.
3) Who are you looking for in terms of your franchisees?
We
are looking for professional, motivated people who are interested to
start their own business in Morocco under the umbrella of the RE/MAX
global system. Through a RE/MAX franchise, these professionals can
manage their own real estate agency while also enjoying all the
training and support that RE/MAX offers as well as access to the
largest real estate network in the world.
4) Is it easy to get a loan in Morocco? What kind of interest rates are we talking about? and what are the steps involved?
It
is fairly easy to get a mortgage loan in Morocco. Usually the buyer has
to provide the banks with employment and salary documentation as well
as bank statements. Interest rates for Moroccans residing abroad are
around 6%. RE/MAX is well equipped to help Wafin members obtain
financing for their real estate project.
5) What type of maintenance budget should the buyer keep in mind when they buy a house.
Maintenance
budgets can vary based on what type of a house it is of course, but it
should be safe to say that $1000 to $2000 a year should do it.
6)
For Moroccan Americans interested in investing in rental property in
Morocco, and are worried about tenant payment. Do we have laws in place
now in Morocco that protect the land lord? what steps can they take to
prevent a bad experience with a tenant?
There
are laws in place in Morocco for rental properties and usually there is
a legal contract signed between the parties to clarify payment and
duration of the agreement.There is also a possibility to
let a real estate agency manage the rental process. RE/MAX offers such
services in Morocco through our rental management services allowing our
customers the maximum flexibility, security and income.
7) what type of return on investment are we talking about with Rental properties. Give us some examples.
I
would say that ROI on rental properties can vary based on what type of
property it is. However, I would say the range varies between 6% to 10%
a year. For example, we have studios for sale in Marrakech which sell
for about 50K DHS and will rent for about 4K DHS /month, which is a
healthy 9.6% annually.
8) Where can we find the best real estate deals now in Morocco?
I
think there are good deals to be had all across Morocco, whether you
are looking for a residential property, commercial property or a real
estate investment, contact us and we will be happy to help you locate
the best deal and assist you throughout the whole process.
9) So, if I am interested in buying property in Morocco, and I come to wafin.com and fill out the form. What happens next?
One
of our representatives will contact you by phone or e-mail or both
within 48-72 business to discuss your real estate needs, your budget
and start the process of finding and acquiring your new home in Morocco.
malik70 : you must be kidding me, we live in morocco , we know there is no deals , the domestic gross in spain is 2000 times higher than morocco , and the prices of homes in spain are around 30% less than morocco, the prices in morocco matter of fact are higher than the USA , the gross income in morocco ( average ) is less than $ 3400 a year, a single 100 meters of land in ok area cost no less than $ 120.000.00 just for the land , ad the cost of labor and material and other costs , you are talking double the amounts , unless you want to live in 4x4 apartements style, with rubish all over your head , and bellow, for these looking to buy in morocco , i say wait, keep you weake dollars for now , in jordan the market when down 30% this year so far , and the expectations are there is another 20% to fellow, just you cant wait for the americans and europeans to buy , and go there for 2 weeks a year, the locals have to drive the real markets, and we know the locals cant afford matisha, plus sardine
drisec : My comment is about the example given to illustrate the ROI. The math didn't make any sense at all. I think the respondant meant in the case of the studios in Marrakech selling for 50K and renting for 4k a month for a total of 48k a year is actually a 96% and not a 9.6% as stated. Am I missing something here? What a sweet deal! You basically getting most of your money in rent within a year? Is this correct?
kaggers : he probably meant 400 DHS per month, which would be 9.6%. I'm still skeptical though, you are probably going to have so many problems collecting rent from someone who is paying 400 DHS per month.
obaid : There is a bitter truth I want to share with my fellow moroccans in the USA. Unless you are a special case making money, you can't anymore cope with the unbeleivelbly social class that is now in possession of millions of cash money( drug dealers, money laundry, illegal activities,...) This social class is now driving the market where you can't afford to buy. Forget about buying in morocco or tell me what you do! :)
Wafine13 : You are riht Kaggers. 400dh/per month will give you an annual ROI of 9.6% (however it doesn't include any other costs, taxes etc... and all the headaches)
But this This guy looks like a shark to me!!!! Are you even serious? what can you buy for 50K Dh (Appr. $6K)? maybe a tent? or dar dial Qazdir? I was there 9months ago looking to invest. Everything you touched, u got burned. So I am not sure where this guy is coming out with these numbers.
zormit79 : It sounds like this guy, is advertising his franchise business more than giving a market outlook.To add to fellow readers comments, you're right the life blood of the real estate market is actually the real residents of Morocco (First time home buyers,young professionals and Moroccans abroad...), not the French or the Brits, they will only drive prices up, speculators will jump in, and create a buying frenzy, or a bubble. Once the prices surpass the purchasing power of the local households, there will be no sales, and the market will eventually correct itself. However, in some areas where the fundamentals are impaired, the market cannot correct itself. Example, people with "haram money" rachwa, drug money,alchool..etc these will always have a higher purchasing power,and available funds than honest and hard working citizens. Therefore you will see prices staying way above what people can afford.
Market examples are Rabat, Tanger,Casablanca, and Nador.
Wa allah 3lam
Allahouma atimna reskan halalan taiba.
sueRabat : I just want to warn everybody in the USA about renting their propeties to someone in Morocco. Even if you have a contract, you still have no protection. Renters tend to not pay their rent after a while, in which case you have to be dragged through the corrupt court system and spend large sums for eviction and wait long months if not over a year. Another thing is that there is a fairly good number of people who take their freedom to destroy the property, vandalism, you can do nothing about it. Also, be aware that semsar in morocco is not the Real estate you know in the USA. They are not even monitored like in the USA where there are laws to take them to court. I would not frankly trust others in Morocco with my money, let alone my property. Now, in the USA there is a great deal of investments to make profits from, in times of high forclosures, you can find many sweet deals, rent them and make a good ROI. Morocco just started to see a price decline of propety, so beware that you may buy a house or flat that would lose about 10-30 % of its price within 2-3 years. The bubble in Morocco just started to burst. Good luck
6 Jan 2010
elamilios : let's all be reasonable my fellow people!! I believe he meant 500,000 DHS for a studio and not 50K DHS. It's an honest print mistake and we shouldn't be blinded by it. Also, I know a vast majority of people that returned to morocco after graduating college and got jobs that pay between 9,000DHS and 15,000 DHS. Therefore an intial investment in one of these studios would be a great start for these youngsters making a monthly payment of 3000 DHS to the bank and owning a property in the long term instead of crashing at mama's house.In terms of investing and renting your property to someone, we all have heard stories about the tenant not wanting to pay or vacate your property but that's everywhere even in the USA; I've witnessed that but that can't scare you either from making a move. The steriotyping and the negativity of people is what's setting our country behind and preventing it from advancing. Dir niya b7aja me9diya o li ma3endo niya ma3endo 9esmiya wa salamou 3alaykoum..
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