Morocco # English board

Guys

We all know how much money is made in properties back home ,but i cannot believe my ears to hear that a new project in Marrakech not started yet !! but the price increased by 22.5% in 1 mounth !!

I hear that people are making money by speculation even on a small projects : they put 40000 Dhs deposit & 4 weekd later they offer the place or a number as they call it for 100000 Dhs !
Crazy its all opver the place people are making a killing , i did a samml calculation if you invest 200 000 dhs & reserve 5 flats even if you sell at 90.000 each u make 250 000 in 2 mounths ,just sitting in a coffe shop sipping mint tea & enjoying the Sun

that 's the business

That is not buisness but delusions and madness. In other words that's called a bubble. I have seen what is happening in Morocco and I know alot of people who also have invested a lot of money in the housing market. What goes up must go down it is just a mater of time. The growth in the housing market is caused by speculation. The first ones to enter the market (the profesionels) are those who makes the big money and are guarentied a big return on their investments and they are already out. What is left now is very risky, people can make money if they get out in time, but it's mostly amatures that is left and they become too greedy when they see profit and they don't get out in time. Unfortunatly many of the amatures have lent and geared their investmentments so they will be hit ekstra hard. We will se alot of people specially the middle class in big financial problems when the buble burst which will lead to a stagnation of the Moroccan economy which is already hit hard because of the high oil prices and big increase in food prices caused by the growing global demand of bio diesel. Another negative side effect is that alot of people can't aford to buy a house because of the high prices.

I wil advise people not to specualte in the housing market in Morocco. But unfortunatly people don't listen to my advise because they hear and see a lot of people make money.

The housing buble in Morocco is caused by an Extraordinary Popular Delusions and the Madness of Crowds (also a book title). The housing speculation in Morocco is like a big Pyramide scheme which hit Albania some years ago and it caused econmoic ruin for many families which ended in riots.

This effect is called Tulip Mania and I really advise you to read more about it here: [en.wikipedia.org]



Edited 1 time(s). Last edit at 11/15/2007 05:37 by Kutchia.

Kutchia

Interesting to read your post ...but other will say :

Property in Morocco is still cheap
Taking spain as an Ex the bubble did not burst on the opposite
Money used in the property market in Spain & in Morocco now is all for laundring !
The old rule : offer & demand !

i agree with you atlasmagic , morocco s property market became the new spain, a lot of people around the world now became aware of this fact , marrakech in particular is a dream destination for a lot of foreigners where else in the world you will find a town where you have the sun , the desert a few miles , the sking resources within an hour or two
the rise of housing prices in spain made morocco the perfect alternative for most people who seek the sun and reasonable prices for living
i read mini articles which anlyses the investments in the housing around the world , morocco is classified as one of the top three, ther are plenty money to be made in buying and selling houses , appartments in morocco , the two most important words in business is to be able to spot the opportunity and sometimes to have the ability to gamble , and wherever this oportunity appears people will compete to take advantage of it , in marrakech now , the first come first serve , this market fever is spreading in other towns in the country , it is a healthy economical sign which provides jobs in morocco and contributes in developping the economy

Quote
atlasmagic
Kutchia

Interesting to read your post ...but other will say :

Property in Morocco is still cheap
Taking spain as an Ex the bubble did not burst on the opposite
Money used in the property market in Spain & in Morocco now is all for laundring !
The old rule : offer & demand !

well their money theor investments. People will learn the hard way. sometimes people can only learn by thier mistakes. I learned it my self he hard way during the dot. com buble burst. Fortunatly i didn't loose alot of money becuase i didn't invest alot in dot com companies. I have many years of wexperience in investments and i tell you that what we see in Morocco right now is a housing buble caused by speculation. the high prices are caused by speculation and it is not the real value of the proporties (not all proporties ofcourse)

I do not agree with those who says that the buble hasn't burst in Spain. It is and it is a fact i have seen the statstics for the last qurter.

Just look in Florida i.e. you can buy a house 50% of what it costed last year.

Amother thing is you can't compare Spain with Morocco. Morocco is a developing country where a lot of the people can't even afford food let along a house. There is alot of other differencies wich is obvious so you can't compare those two countries.

Yes the market mechanism of supply and demand still exists but tht dosn't necassesary mean that the market is in order. Now tell me how big a percantes of the Moroccan population can afford the house prices that are today? Yoou will be very suprised that it't only a very small minority at the moment. In the end somebody will get burnt.. its just a matter of time but as long as prices keep rises and people becomes more and more greedy things will go bad.

Kutchia

You are right we Spain & Morocco are diffrents but the one thing that both property markets have is both are fueled by foreign inversters & MONEY lANDRING

Morocco & its markets being tourism ,property,the new Malls ....ect its done done for the poor Moroccan with a low income but for the foreigners in the 1st place ,the elite in Morocco ( they are big spenders) & RME

I'am not an expert but i feel we still have a bit of time ,providing the SECURITY aspect stays ok in Morocco & the so called progress spin continues