The Tangier Property Market in Brief - A City on the Move

Mention Tangiers to most Europeans and they willMediterranean rivalling Monaco and Palma for glitz and
have a romantic vision of the interwar years whenglamour with expensive yachts bobbing off shore and
Tangier was a hotbed of spies and espionage orrefined restaurants and boutiques lining the
recall the days when Western bohemians such as thepromenade.
Rolling Stones were drawn to the city to smoke kifAnd the ambitions don't stop there. Plans for a tunnel
in Cafe Hafa. Even the ancient Greeks recognised itsfrom Tangier to Spain are underway which will make
possibilities referring to it as "the most beautiful citythe technical challenges faced by the Channel Tunnel
in the world."look like "child's play", according to the respected
Since those heady days the city slipped into obscuritytunnel builder Giovanni Lombard who at 80 years old
as a combination of political mistrust (the King fearedmay never live to see his greatest achievement
rebellion from his northern most cities) andcompleted. So don't ditch the ferry tickets yet, the
consequent economic decline fed underdevelopmentearliest date for completion is 2025.
and poverty. But today Tangier is a city on theIt is anticipated that this final link will enable
move; the sunshine now bounces off the firsthigh-speed train travel from London to Tangier and
gleaming facades and the views feature constructionMarrakech to become a reality, maybe even one day
cranes amongst the palms.stretching the length of Africa to Capetown. A bid of
MASSIVE INVESTMENT TRANSFORMS CITYseveral billion euro was recently accepted from a
King Mohammed VI is the driving force behind thisFrench consortium to link Tangier to Marrakech by
rebirth. He wants to make this ancient trading cityTGV high speed train taking the journey time from
relevant to the 21st century, after all the strategicaround eight hours down to just two.
and location advantages of Tangier are the sameThe international airport that serves Tangier, Ibn
today as they've always been, it's the gatewayBattuta International, has been undergoing some
between Europe and Africa and the first major portextensive improvements, which include a new
at the mouth of the Mediterranean.multi-story car park and baggage handling facilities to
Over 1 Billion euro of public funds have been allocatedenable it to receive a greater volume of flights.
as a physical sign of the King's intent on top ofPreviously the airport had been served only by the
massive loans from the EU and private investmentflag carriers Royal Air Maroc and British Airways who
from France, Germany and the United Arab Emirates.charged premium rates and controlled the routes.
The aim is quite simply to spruce up Tangier,However the Open Skies Agreement signed
transforming it into the intercontinental hub of tradebetween the Moroccan Government and the EU has
between Europe, Asia and America. Overseeing thisopened up air travel to the Kingdom and the low
ambitious project is one of the most inspirational localcost carriers are beginning to announce new routes
officials in Morocco, Mohammed Hassad, the governorto Tangier. Easy jet recently opened a service from
of the Tangier-Tetouan Region and a graduate of anMadrid and will shortly be starting services from
elite Parisian university. Before his appointment inBarcelona and the UK.
Tangier he was chiefly responsible for the "reTOURIST NUMBERS EXCEED EXPECTATIONS
branding" of Marrakech, taking it from a dusty desertThe Vision 2010 Programme, launched by the
city to a chic, desirable location attracting over 4Moroccan Government in 2001, aimed to increase
million visitors a year.tourist numbers to 10 million by 2010. At present the
Key to Hassad's strategy has been to put in placenumber of tourists stands at 9.4 million, only 600,000
the infrastructure improvements required to attractshort of the total - an incredible achievement given
European visitors, and the prosperity they bring, backthe global economic conditions. The new air routes
to Tangier. He wants to recreate the glory daysand marketing campaigns in Northern Europe have
from the mid 1920's to the early 1960's whenbeen successful.
intellectuals and spies injected a dash of glamour andRevenue from the sector increased last year to $7.5
to when Tangiers was seen as an equal with anybillion compared to 3.5 billion during 2006, itself an
other major city in Europe.increase of 29.9% on the previous year. Moroccan
A KING-SIZED PROJECTgovernment statistics also show that tourism
The previous King of Morocco, Hassan II, neverrevenues have increased at a greater rate than
visited Tangier, leaving the "rebellious region" to thearrivals, suggesting that Morocco is increasingly
cannabis barons and smugglers. But the future Kingattracting high spending tourists rather than the
spent his early years in the town and could even bemass-market all-inclusive visitor.
seen jogging around some of the leafier suburbs orBUT WHAT DOES THIS MEAN FOR TODAY'S
water-skiing off the beaches. Today he invitesPROPERTY INVESTOR?
celebrities and politicians to his palace on the hillsWhen the world's largest residential developers Emaar
overlooking the Bay of Tangier. His efforts haveand the creators of Sun City in South Africa decide
attracted a string of celebrities and influential peopleto invest in a country, there's obviously something
to settle in the town; the fashion designer Yves Saintgoing on. Property investors should see these
Laurent, former Spanish Prime Minister Felipeventures as a massive vote of confidence in
Gonzalez and the philosopher Bernard-Henri Levy.Morocco and a sign that this growth is a sustainable
But the project is far greater than any person, nolong term project from which they can make real
matter their influence. In July 2007 the King openedreturns rather than a speculators bubble created by
the new Tangier Med Port, situated just 35km froman influx of speculators.
the city and built in record time and on budget. ThisHigh levels of Capital Growth - As property prices in
new facility has been so successful that a furtherestablished Northern European markets are
extension has already begun creating the largestincreasingly affected by the global credit crunch and a
deep-water port in Africa with a capacity in excessloss of confidence, property investors are looking at
of 8.5 million containers. (As a comparison, Hamburg,Morocco as a country in which they can earn the
the largest container port in Germany only passedreturns they previously enjoyed from their property
this mark a year ago.) It is expected that the portinvestments.
will create in the region of 100,000 new jobs, manyThe imminent entry of low cost carriers to Tangier
of which will be middle and upper managementairport provides investors with an immediate
positions taken up by expat professionals oninvestment opportunity in Morocco. One of the best
contracts, creating a significant area of demand forroutes to successful property investment is to buy in
rental properties.an area that is about to go up in the world. Recent
Cargo ships will dock here, transferring goods fromresearch by Savills and Holiday-Rentals indicated that
Asia and beyond for shipment across the Atlantic orproperty prices within 10 miles of an airport served
for transportation to Europe by truck or boat. Inby a low-cost airline are nearly 40 per cent higher
addition, a new roll-on, roll-off dock will be built thatthan those of properties a similar distance from
can handle 1.5 million vehicles and five millionairports with scheduled services only, and that the
passengers.rents were about 30 per cent higher. It seems that
The external areas of the Med Port will also benefitholiday makers want to save on the air fare but are
from having three new special economic areaswilling to spend extra on the accommodation.
covering around ten square kilometres for logistics,Increased Rental Demand - The North African Times
industry and trade. It's here that multinationalrecently correctly identified these trends as resulting
companies are now establishing their operations,in an increased demand for rental property. As more
benefiting from the absence of import and exportvisitors discover Morocco it is clear that there will
tariffs to manufacture and assemble their productsmore holiday lets and requirements for self-catering
and then sending on to the countries with whichaccommodation.
Morocco has free trade agreements, the USA and10 REASONS TO CONSIDER MOROCCO FOR
the European Union.PROPERTY INVESTMENT
As recently as September 2007 Renault Nissan1. Never to be repeated entry level prices - similar to
announced the establishment of a new carSpain 20 years ago.
manufacturing plant in Tangier which will be located2. Sleeping giant of Mediterranean tourism - less than
on a 300-hectare site inside the Tangiers3 hours from the UK & Europe.
Mediterranean Special Economic Zone and will use the3. The Open Skies agreement opens Morocco up to
Tanger Med port. Representing an investment oflow cost airlines.
more than €600 million, the complex will create4. Vision 2010 has increased tourism, improved
6,000 direct jobs and 30,000 indirect jobs.infrastructure and revolutionised the property market.
FURTHER TRANSPORT IMPROVEMENTS DRIVE5. Year round warmth means 12-month season.
GROWTH6. Strong political backing combined with substantial
Where today the centre of town is clogged bygovernment investment.
traffic from the port and the loading bays and cranes7. Massive private sector investment.
blot the skyline, soon the centre of town will be8. Tax regime favourable to investors - 0% IHT, 0%
transformed as the existing port is remodelled into aCGT after 10 years, 0% Income tax for 1st 5
luxury marina attracting the largest ocean goingownership years.
yachts and the world's richest people to the city. The9. Shortage of European standard rental
sweeping bay of Tangier has the potential toaccommodation for international business.
become one of the most picturesque on the10. 100% repatriation of profits on sale.