Would be a great news if the prices of real estate would follow, unfortunately the prices are still insanely high, thanks partly to our "samssara" who keep inflating the market. The real estate market does not seem to obey any analytical criteria, I've seen an entire block of appartments in Marrakech (Issil) completely empty because the owner and the brokers were asking for prices beyond the imagination, but they still don't get it, they'd rather wait for a sucker, in the meantime freezing their assets in bricks.
Its common sense, westerners who are up to their eye balls in credit and exuberant mortgages and negative equity and whose businesses are in dire straits, due to the economic melt down, have no choice but to withdraw and liquidate their investments in Morocco. Add that to a decline in tourism (which the economy relies upon), due high fuel and travel costs, and you have a serious situation. I hate to say that this, coupled with high inflation and high unemployment, will inevitably lead to unrest and riots in the streets in the very near future.
Edited 1 time(s). Last edit at 09/18/2008 10:01 by fcurrito.
May be just may be at last we will witness the hungry man is an ungry man. Our country is ritch, but a handfull of people enjoying the wealth when the rest are living in the felth that is just sad.
This blind boom was not for the interst of our nation; the sooner it will end the better for those who are strugling to subsist in a world full of unjustice. The large real estate businesses are held maily by foreigners that will liquidate theirs assets when they go to bankrupsy.
As more US banks seek mergers to avoid the crash that brought Lehman Brothers down earlier this week, the effect on finance markets is spreading across the world.
In Morocco, which has been largely immune to the global credit crunch, property stocks are tumbling.
Moroccan real estate shares fell as much as 6% on Wednesdayamid concern that the credit crisis could dampen foreign interest in the North African country's fast-growing
Shares in real estate firm Addoha ADH.CS were suspended after tumbling 6% to 162.05 dirhams. The stock has lost 45% of its value this year.
If Morocco were isolated from the rest of the worlds finacial crunsh; this can only prove that 99.9999% of the population are not investors but survivors.
Quote adds this can only prove that 99.9999% of the population are not investors but survivors.
That's not going to fly this time, the working class is tied up in credits up to their ears, they've contracted for their homes, housing equipment, cars loans...etc The central bank, just a few weeks ago, issued a warning that workers are shelling up to 67 % of their salaries in credit payments, that leaves them with less than a third of their salary to face the monthly expenses. A recession would trigger a cascade reaction that would effectively destroy the middle class then the rest of the working class spectrum. Banks would collapse if the borrowers start defaulting massively, we'll have our own little subprime disaster. Surviving was possible when banks didn't withdraw 2/3 of the salaries every first of the month, now the moroccan worker is strangled, or should I say strangled himself, just like any other worker in developed countries.
That depends on whether moroccan banks have a compensation fund in case of a meltdown, as you have in Europe or North America, I suppose so since it's a regulated sector. The problem is the usual bureaucracy we've learnt to expect in our country in case that happens. You should check with your bank on the ceiling they've put for compensation, if it's too low then redistribute towards another account.
amid concern that the credit crisis could dampen foreign interest in the North African country's fast-growing 
chargement...
