A guy I've known on housepricecrash.co.uk (overseas section),just finished a riad in Morocco (Asilla). Quite impressive - he also gives a link to show the property now up for rental.
I am currently investing in 2 properties abroad;
1) Germany
Block of 20 appartments
Current net yield is 20%
We are refurbing the property which will cost about 100,000 euros as this will drive up the rents (under German law tenants have to pay increased rent for agreed refurbishments).
Capital growth - we anticipate being 100% based on the refurbishment effect. Market capital growth we expect about 5%pa, as the area is right on the Polish border and the demand from Poles wanting to live on the German side is substantial, so much so that currently NO 1 bed appartments remain for sale of rent!
2) Off plan villa in Saidia Morocco.
This is the Kings premier showcase development to the world.
As far as I can tell the development offers a significantly wider range of sports and leisure facilities compared with any development in Spain or Portugal.
£168000 for a detatched 125m2 villa with own pool and built right into one of 3 onsite 18 hole golf courses.
This is a 5* development but some sections are reserved for 3 / 4* properties.
International rental companies manage everything. Properties fitten with Seimens appliances, plasma TVs etc.
The aim has been since inception to try and provide a year round development and specifically not a winter ghost development the like of which pepper Spain, Portugal etc.
The development has its own 7km sandy beach and the Meds largest marina is 70% built. This marina will take the largest luxury yatchs which is a very important factor. Few other developments in the world can make this claim.
This is what sets this development apart, it is not just another slightly inland Spannish development.
The onsite shopping centre will have 500 shops (compared to a couple of dozen with large Spannish developments) and many international brands have signed up including Channel, Armani, Mango and Budha bars. I hate shopping but the point is this is another season extender in that people will come knowing even if the weathers bad they can indulge in a huge shopping experience)
SNOB FACTOR - The Meds largest and most modern marina will certainly attract the in crowd, indeed already people with yatchs in Spain are buying the marina berths here as there is so much more room for the super yatchs.
There is also to be 2 French supermarkets, 11 on site branded hotels (compared to 3 on the biggest Spannish resorts - imagine how many people that will bring to site) and the Olympic standard sports facilites in which over 60 Premiership named footballers have bought property.
The development is 7million m2. The 11 hotels include sofihotels, Iberostar, Barcelo and other well known brands which gives me more confidence as an investor in that they will have researched the market potential and safety aspects.
To extend the season further there will be dozens of top notch spa and treatment centres (again premium Spannish developments feature just a handfull),an onsite hospital (already built),cinemas, bowling alleys, 17 golf club houses, arenas, and at least 20 stand alone restaurants, plus those in the hotels. Also a 2000m2 arts and craft centre, traditional soux, and 1000 seat conference centre.
Each investor (lejardindefleur product) gets a clubcard to use for free the 11 other developments within this one development! Each mini development with in the one Saidia development is distinct, for example one aimed at sports holiday makers, another at families another at stressed executives and so on.
5* service is built in, such as a Concierge to meet all guests and prearrange thier entire stay activities on arrival.
Heli pads and other glitzy features are aslo included.
An onsite amusement park will keep the kids happy as will several swimming lagoons.
1.6 million trees are being planted.
DOWNSIDE - for some the fact this is a Muslim nation is a put off. Note though that many Americans are buying here (particularly Tangiers) as Morocco has a close relationship with the US for example the 2 have a free trade agreement, and Morocco was the first nation on Earth to recognise an independant USA!
All in all its a tollerant place and the King is very pro Western in totaly dominates the nation. Of course there is the odd nutter, but this is not enough to deter holiday makers, afterall Egypt is attracting very high tourist numbers yet is considered more risky.
On YOUTUBE you can find many videos of young Moroccans hanging out in thier BMWs listening to Hip Hop. The beaches show locals in bikinis. This is relaxed Islam.
A brand new airport with 25 hubs is being built (based on an old airport site),which is 25 minutes away by the newly opened AMERICAN BUILT highway.
I expect French people to retire here given its close proximity to France and the fact the French come here in droves as its French speaking. The onsite shops and hospital will underpin the pull from retirees.
NUMBERS - very difficult but a 5* villa on golf, with own pool, 20 MINUTES FROM THE BEACH WITH NO MARINA IN SPAIN COSTS 2.5x as much.
I expect, in fact Im certain rental numbers will match those of Spain - why not, people will pay for the services and experience available.
This means the rent yield based on a low aquisition cost should be pretty robust.
Many more of these mega resorts (but widely spaced from one another) are being built. Morocco is specifically aimed at the middle to upper end markets, indeed new inititatives have just been launched to ensure this outcome. It does not want to be a 'jack of all trades' and is specifically not geared to the low budget tourist market. I think this is a unique move by a nation.
GDP grew 7.9% last year and tourism numbers are already out stripping supply.
French and Belgium (flemmish) companies are relocating a lot of thier business's here in the way the UK outsources to China.
Phew!