Condominium phenomenon

Money management firm, Jones Lang La Salle, describes Europe as being “in the midst of a hotel transaction boom” thanks to “an increase in investment appetite for the hospitality sector”. Leisure-Oriented Real Estate has made a welcome shift from the murky, restrictive, mediocre and unprofitable world of timeshare to the transparent, upmarket, hotel brand-managed world of condominiums, and now the boom is spreading across the water into Africa, most notably Morocco.

Sahara Beach & Spa Resort within the Northern Moroccan coastal resort of Mediterrania Saïdia is a perfect example of how absentee owners can generate quite a significant income, underpinned by real estate values. Unlike timeshare, where all that’s owned is a date, a fixed week that can be swapped or sold for little return, a condominium such as Sahara Beach & Spa Resort offers freehold ownership complete with title deed of each unit or units owned. A condominium is a true investment vehicle. Whilst left to the management of the hotel operation under a single brand name, the unit is marketed to the global tourist via thousands of travel agent partners and rental incomes are shared with the owner. Should the owner wish to sell, of course they are at liberty to do so, enjoying an inflated sales price thanks to capital appreciation in Morocco currently hovering between 20 and 25% per annum. It’s a win-win arrangement.

The five star Sahara Beach & Spa Resort comprises 204 spacious sea view one and two bedroom apartments, suites and duplexes. The two bedroom apartments offer a very special three-way rental option to maximise rentability and subsequently returns. These properties (type A and type C) feature two front doors and can be rented either as a two bedroom apartment, a one bedroom apartment, or a one bedroom suite. All units are created with every comfort, fully equipped kitchens and luxuriously furnished to attract a discerning consumer.

The exotic holiday paradise is set in lush tropical parkland intertwined with three lagoon-style swimming pools and flanks virgin sandy beaches shelving into warm, clear seas. Facilities include a Moroccan-themed Spa & Thalassotherapy centre on two floors, a gymnasium and fitness centre, three themed restaurants, three bars – two on the rooftop with panoramic views and one poolside, a conference and banqueting centre and children’s club. In the close vicinity Sahara Beach & Spa Resort residents will have easy access to diving, surfing, boating, golf on championship standard courses, horse-riding, a marina and both high street and boutique style stores.

Properties purchased will be offered through a fully managed lease-back system and owners will benefit from guaranteed profit share of all rental income; a leading hotel operator will be appointed to manage the aparthotel and announcements will be made shortly. Owners will have the opportunity to enjoy their investment for up to 6 to 8 weeks per year for personal holiday use.

Prices from 81,000 GBP for a 58m² one bedroom. Payment terms, 2,000 GBP holding deposit, 20% exchange of contracts, 20% when construction commences (end 2007) and balance of 60% on completion, expected end 2009/early 2010. For further information, visit gem-estates.com.