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Moroccan property market holding firm

Moroccan property is emerging as a strong investment asset, with the market holding firm in the wake of the Arab Spring.

According to the real estate price indexes from the Bank Al-Maghrib and the National Land Registry Office, residential property prices increased by one per cent over the second quarter of 2012, the Global Property Guide reported.

Apartments enjoyed the largest annual price increase, rising 2.3 per cent year-on-year. However, other areas of the market didn't experience such a rise, with house and villa prices plummeting 1.8 per cent and 2.6 per cent respectively.

The volume of apartments transacted also increased in the second quarter of 2012, with sales increasing ten per cent year-on-year to 17, 457 units. This accounted for approximately 61 per cent of total transactions for the quarter.

Villas also experienced a rise in sales, with a jump of 40 per cent taking units transacted to 472. However, houses continued their negative run, with a fall of 6.1 per cent in sales year-on-year to 1,318 units.

Nevertheless, the positive overall picture of the market will be welcome news for those considering Moroccan property. Like much of the globe, the country has experienced somewhat of a slowdown in the housing sector over the last couple of years following the financial crisis and the political uncertainty of the Arab Spring.

Tim McTighe, a partner of Fes Properties, explained to the New York Times that the country's "glory days were between 2004 and 2007", but the political tumult experienced by Libya, Egypt and Tunisia has tarnished Morocco with the same brush. However, he assured investors, "Morocco is a very peaceful country, night and day".

Real estate is also expected to receive a boost as the government strives to increase tourism in the country. The Moroccan government plans to double tourist arrivals to 20 million and position the country as one of the world's top 20 tourist destination, the Global Property Guide explained. This expansion is hoped to help deliver five per cent GDP growth in 2013.

Article by James Roberts on behalf of Propertyshowrooms.com