Real estate in Spain was once a flourishing market, with foreign investors and second home buyers all taking advantage of the housing boom which began way back in 1999. Low interest rates below the 3% mark enticed buyers from around the world; the phones at real estate agents would hardly stop ringing and the Spanish real estate market experienced a revolving door flow of customers, which drove the economy to new heights, never before seen or experienced anywhere in Europe.
However, now the situation in Spain has very much changed. Talk to any real estate agents in Spain, and you will hear words like ‘paralyzed’ and ‘dead’, both references to a once booming real estate market in Spain. From 2007, the beginning of the end came as the credit crunch hit major countries world wide, interest rates rose and house prices fell to as much as 14%. There are predictions of further house price declines expected in the next few years, with much pessimism for recovery. With over 1.6 million unsold properties, and around 1 million unsold newly built apartments and houses and almost 330,000 properties under construction. With low demand for mortgages, unemployment rising, the glut of homes along with the worldwide credit crunch, alarm bells are ringing for Spain’s government.
From Spain’s current predicament, a new country has risen to start a new boom in the real estate market. The Kingdom of Morocco has built itself on not repeating the mistakes made by Spain, and the current influx of foreign investment and interest in Morocco property has enabled the country to reach new heights in-terms of GDP growth, with Morocco’s government looking for steady progress, as opposed to overnight success experienced by Spain, which took a turn for the worst in less than a decade.
New tourist developments, as well as economy accommodation for citizens has proven to be most successful in Morocco in the last 5 years, with new investors reaping the benefits from capital gains that topped the 20-25% mark. Morocco real estate has certainly gone up a gear in the last 2 years, with large tourist projects at the top of the agenda attracting more than a quarter of a million second home buyers in 2009. The prospects look good for Morocco’s property market, with many buyers attracted by low prices, great mortgage rates, booming economy and tourist industry, with lessons having been learnt from Spain’s experiences, Morocco has emerged as one of the safest places for property investment.
About the Author
Ahmed Yermak operates a real estate agency in Tangier, Morocco and works with Maroc Techniques Management (MTM) in providing consultation on investment opportunities to foreign investors.
Ahmed Yermak also runs a blog at http://www.moroccopropertyguide.com that provides useful information regarding Moroccan property and the latest news and updates within this booming industry.
http://www.youtube.com/watch?v=NQKPudGznBU&feature=player_embedded
However, now the situation in Spain has very much changed. Talk to any real estate agents in Spain, and you will hear words like ‘paralyzed’ and ‘dead’, both references to a once booming real estate market in Spain. From 2007, the beginning of the end came as the credit crunch hit major countries world wide, interest rates rose and house prices fell to as much as 14%. There are predictions of further house price declines expected in the next few years, with much pessimism for recovery. With over 1.6 million unsold properties, and around 1 million unsold newly built apartments and houses and almost 330,000 properties under construction. With low demand for mortgages, unemployment rising, the glut of homes along with the worldwide credit crunch, alarm bells are ringing for Spain’s government.
From Spain’s current predicament, a new country has risen to start a new boom in the real estate market. The Kingdom of Morocco has built itself on not repeating the mistakes made by Spain, and the current influx of foreign investment and interest in Morocco property has enabled the country to reach new heights in-terms of GDP growth, with Morocco’s government looking for steady progress, as opposed to overnight success experienced by Spain, which took a turn for the worst in less than a decade.
New tourist developments, as well as economy accommodation for citizens has proven to be most successful in Morocco in the last 5 years, with new investors reaping the benefits from capital gains that topped the 20-25% mark. Morocco real estate has certainly gone up a gear in the last 2 years, with large tourist projects at the top of the agenda attracting more than a quarter of a million second home buyers in 2009. The prospects look good for Morocco’s property market, with many buyers attracted by low prices, great mortgage rates, booming economy and tourist industry, with lessons having been learnt from Spain’s experiences, Morocco has emerged as one of the safest places for property investment.
About the Author
Ahmed Yermak operates a real estate agency in Tangier, Morocco and works with Maroc Techniques Management (MTM) in providing consultation on investment opportunities to foreign investors.
Ahmed Yermak also runs a blog at http://www.moroccopropertyguide.com that provides useful information regarding Moroccan property and the latest news and updates within this booming industry.
http://www.youtube.com/watch?v=NQKPudGznBU&feature=player_embedded
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