Capital from the casbah

Morocco's potential extends far beyond its appealingly low prices, writes Alexander Garrett

In Esther Freud's novel Hideous Kinky, a 1960s hippy mother takes her two young daughters to live in Morocco, exposing them to the sights and smells of the casbah. It is a journey today's forty- and fiftysomethings are making with increasing frequency - but the beggars and the seedy hostels are replaced with smart restaurants and luxury villas.

Morocco is on the up: 170,000 Britons visited in 2004, an increase of 26 per cent on the previous year. And increasingly, they're buying. As Alistair Emery of Hamptons puts it: 'People are looking at Spain and Portugal, where there has been huge capital growth over the past five to 10 years, and they are seeing that Morocco is not that much further away, but offers the potential of much better growth.'

The appeal of Morocco goes beyond investment potential, however. It's probably the most exotic country you can reach on a three-hour flight; its decorative style, vibrant culture and warm year-round climate leave the likes of Spain and Portugal in the shade.

Marrakech is the epicentre of both the tourist trade and the real estate market. Peter Roberts, a director of development company Amazing Morocco, says: 'It has a fantastic climate, with over 300 days of sunshine - and it's a dry heat, so there are no problems with sleeping at night. It also has a wonderfully cosmopolitan character.'

Marrakech stays warm - 20-21 degrees centigrade - throughout the winter. Fes, by comparison, can get quite wet, while the coast is generally windy outside the main summer season.

Marrakech is also the gateway to the Atlas Mountains. Amazing Morocco chose the translation of that name - Bab Adrar d'Atlas - for the small development it is building 20 minutes south of the city. Bab Adrar consists of two, three and four-bedroom luxury villas sold on a shared freehold basis. You pay from £85,000 to buy a one-seventh share of the villa - although you can buy a property outright for between £445,000 and £595,000. The properties are designed by Moroccan architect Karim el Achak and each comes with a chef, housekeeper and maid as well as a private swimming pool, terrace and landscaped gardens.

Marrakech has always been a magnet for celebrities, from the Rolling Stones to Winston Churchill, Yves St Laurent to Jean-Paul Gaultier. Another development hoping to lure the smart set is the Four Seasons Private Residences, being marketed by Hamptons. A consortium of local and international developers are building 40 properties a stone's throw from the Medina. They come with pools, central courtyards and all the services of the adjacent Four Seasons Hotel; prices range from £450,000 for a two-bed home to £740,000 for a three-bed villa.

Emery of Hampton's says that, with ready access to the centre of Marrakech, gated security, and five-star services on tap, prices have been set at 'a significant premium' to the local market.

Morocco looks a good punt for investors: prices are as little as half those of the Iberian peninsula, visitors are increasing and the pro-Western government is encouraging overseas buyers. Emery says: 'Property prices have risen by around 50 per cent in the past two years, and land prices have been rising even faster.' The most expensive part of Marrakech is the Palmeraie, to the north east of the city. Here villas are snapped up by French sophisticates, and a decent villa will set you back between €2m and €3m.

If your pockets are not deep, you could 'do up' an old riad in Marrakech. Riads are traditional Moroccan buildings - a house set around a courtyard, with typical features including mosaics, Moorish arches and often a water feature. At the bottom end of the market you can still buy for less than £100,000.

Bab Adrar d'Atlas,; Four Seasons Private Residences, Real Estate Morocco,

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