Back and Forth

Hello blogmates, its all quiet on the Moroccan front after the Xmas rush which is to be expected. Have been away for a few days to the rather photogenic Spanish haven of Vejer de la Frontera and if i thought it was quiet here its tumbleweed central over there, with lots of the cafes and restaurants closed for winter and friends scrabbling for work.

What was very noticeable were the notices in estate agents windows announcing price reductions on lots of the properties as through the past few years the Brit influx married to favourable tabloid reports led to escalating demand for the rinky dink old town properties. Of course throughout Spain now this era of silly year on year building concrete Disneylands and asking monopoly money for a ruined shed (lets call it a Cortijo to make it sound grander) in an illegal suburb, has come to a grinding halt. There is of course here a comparison with Morocco, which although in many ways is a mirror of how Spain was a few decades ago, gorgeous, virgin countryside, unspoilt beaches and cheap property could fall victim to inflated prices bouyed by the international not the local market.

We have seen here in Fes over the last few years the rocketing prices for the medina houses which though still good value for money when compared to dealing with European property, specifically London, could be a case of too much too soon. For instance the dream of local Medina house owners is to sell their almost habitable wreck to a an enthusiastic Brit renovator and move into a modern flat in the Ville Nouvelle. However the knock on effect has pushed up prices of these flats so the local has to put up the price of their old house to make the move financially viable for the family involved.

Its a tricky situation and one I feel that will find a more sensible pricing structure as we enter 2008 after the goldrush effect of recent years. For a lot of buyers however it is not just an investment in financial terms but a lifestyle choice as they fall in love with the perceived easygoing stressfree nature of life here plus the bonus of owning a slice of history. What is important is they prepare themselves financially, emotionally and also allow adequate time to realise their dream and the commitment needed. When you hear six months for a renovation best practice would be to double it. In fact if you double everything you perceive its going to take as a rule of thumb then you wont go far wrong and have a built in cushion.

The mood in Spain is one of uncertainty and its a palpable feeling and coupled with the US woes spreading its tentacles eastward this could have effect on all markets. Here in Morocco with the amount of investment not just from individual investors but the big players such as Emaar and Fadesa I think as it stands its in a very healthy position as long as greed and inflated expectations dont get in the way.