moneyman

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!