Investing in al houara

[imported_simonw]

Hey guys

Went to the property show over the weekend and saw the al houara resort development. I must say first impressions are...."AMAZING"!!! It looks like an awesome project and so tempting - but that's just the looks.

I spoke to one of the sales guys and apparently they have sold out almost all their first phase and second phase is being launched (or launched...can't remember). But the prices seem on the high side. Even though it comes fully furnished and all luxuries, still seems higher than the neighbouring projects like tinja.

What do others think - how does it stack up as an investment?

S

 

[nisrine]

Hi all,

Well, I am one of the sales guys of al Houara. Yes, it is true, we finished with the first phase and we are now selling the second phase. The sales is going well because the project is great and it is first of its kind in Morocco.

If you need any details, I am always here.

Thx

Nisrine Zenati

 

[imported_simonw]

Thanks for the quick post Nisrine. When I was talking to a sales guy at the show, he mentioned something about the developers buying back the unit when it comes to resale.

Can you explain that please? Is that like a guaranteed buy back scheme?

 

[nisrine]

Thanks for the quick post Nisrine. When I was talking to a sales guy at the show, he mentioned something about the developers buying back the unit when it comes to resale.

Can you explain that please? Is that like a guaranteed buy back scheme?

Well, if someone or a company wants to buy number of units and resell them, this is possible but until now there is nothing like that. Morocco Sotheby's International realty is the only company promoting Al Houara.

 

[nisrine]

Going back to the issue of prices, you said that the prices are to ceratin extent higher than other developments, well, I think that we have to distinguish between one development and another taking into consideration the facilities available in each project, its quality and many other things.

Al Houara is a luxury resort and the price of its different units match its high quality and the different options available which can not be found elsewhere, for example, those who are interested in investement have the right to determine the period in which they want to use their house, the period in which their unit can be rented out and also they can choose unlimited number of weeks to spend holidays in other luxury resorts around the globe for free. And this is considered as a the best reward to investors who trust al Houara and its services. Do you find this elsewhere?

Also, what distinguishes al Houara from other developments is the very low density in the sense that the project is 234 hecatres but only 10% built and this in order to make the owners have a ceratin kind of privacy especially for palaces' and villas' owners who have individual swimming pool and big graden with full breathtaking sea views.

 

[imported_simonw]

Point noted nisrine. I do agree that al houara is a luxury resort and really aimed at those wanting that luxury. The low density and point exchange system is definitely a plus point compared to other developments. However, I still believe that this project is aimed at more holiday home owners than investors. Houara is something you would own if you'd want it for yourself, not really as an investment.

Investment becomes secondary in this case because of its high resale value. When its time to resell, you will only be appealing to a certain select investor groups who have access to that kind of capital. I'm not saying thats a bad thing - I'm just trying to illustrate a point.

For me, I'm looking at an investment which I have an entry and exit. With houara, it seems that the entry is there, but the exit seems a little far-fetched.

Would you agree?

 

[nisrine]

I do agree with you in some points and i do not in others. You know that in Tangier, the property prices are increasing incessantly and there is no limit for this increase and this can make any investor believe that he will make a good investment if he sells his unit on the right time. Also, al Houara, though it is unique, may contibute to push other developers increase their prices especially when they know that people buy from Al Houara inspite of the high prices.

 

[globalinvest]

Sorry to barge in on the conversation here guys, but I have been reading this thread with interest. I can see both points of view here, and nisrine, your last post seems a little "hot-air" to me.

You are saying that property prices in Tangiers will increase and continue to increase - there is no ceiling on it? I disagree - every market has a ceiling price and Tangiers will find it's ceiling price very soon. Above a certain price bracket, properties become unaffordable as holiday homes and investments - thats when prices will stop increasing and the market will stabilise.

You are also saying that if an investor thinks that he will make good returns based on timing, and the above factor will make him believe that - I disagree again. Market timing and fluctuations are dictated by investors and developers alike. If a developer continues to increase prices, investors may continue buying - but only to a point where the property is still yielding good returns. Beyond that, the property does not work as an investment. As a result, investors stop buying and start selling, which in turn brings prices down. So timing is good, but pricing is even more important. Pitch it at the wrong price, and the project will certainly fail (this is not necessarily the case with houara, but im just making a point here).

Finally, using Houara as a yard stick to measure other projects in the area and subsequently the prices is also a shot in the dark for developers. With such a young market like morocco, developers would be better off with a gradual increase in prices rather than raising them at every stage. If prices continually rise, the projects will fail and game will be over very soon. Al Houara prices are on the higher side compared to other projects, and I don't think investors will miss this point. Also remember that any new idea or concept works for the first time, but if its uses are not widespread and dont have a wider appeal, it will certainly die a slow death.

Just my 2p!

 

[nisrine]

Al Houara can be both a holiday home and investment. I want to ask you a question if rich foreign people or VIP's want to come to morocco for spending thier holiday, do not you think that Al Houara will be the best place for them?

Well, those kind of people will rent the units in Al Houara and will pay for the services generously and of course here the investor who is the winner.

 

[nisrine]

Well, moneyman, there is no question that there is a ceiling price beyond which we can not go. But until the moment everything is still open and tend to increase.
I am from Tangier and I know that in many places in Tangier the price of the property exceeds 2000 euros (20.000 MAD) per sqm and it has become common in some areas like in the downtown (Boulvard de Pasteur) or by the mediterannean sea (Playa). And there is nothing special about these developments except that they are nice building with nice views.

Many of our clients say that the prices of Al Houara are logical because there are developments which do not have the same quality of Al Houara and their prices are the same.