What rent do you predict?

[exfcsm]

Hi there
If you're looking to go out to Saidia in the future, my apartment is ready to use. By all means send me a message and I can send you the details.
Shani

[howellmr]

I'm sure Saidia can justify the rental numbers you discussed. The challenge with Saidia for the first number of years will be occupancy rates. There are a large number of rooms (hotels, appartments and villas) coming available at one time, however tourism is a new area will take years to match supply.
My experience has shown that this often creates a rental price war. This is a double edged sword.
+ It will make Saidia more attractive (cheaper) to tourists and expedite increased occupancy rates.
- It drops expected rentals which may will likely result in negative cash flow driving a number of investors to dump their "losing" investment prematurely, putting downward pressure on selling prices.

All of this will work itself out in the long run, and I'm convinced Saidia will become a greatly desired world class resort in the long run, which is why I have invested, but the question in this unstable global economy is, how long is the LONG RUN??

[Mr Ri]

howellmr

I agree that Mediterrania Saidia is a longer-term investment. With a resort of this scale, its going to take sometime (perhaps 2010-11) before all the sports and leisure facilities are constructed and operable, and the big name shops, restaurants and bars open. The big question for me is quality, and whether this resort will deliver the 5 star standards the marketing suggests.
With 5 star facilities then Mediterrania Saidia will deliver excellent rental returns for those properties that meet similar standards (i.e. luxury properties in a luxury resort will deliver the greatest returns).

However, I do think that we owners will need to play our part to ensure the developers and authorities deliver the standards that will make our investments flourish, both in terms of finish quality of the properties and of the sports and leisure facilities.

The good news is that the Barcelo and Iberostar hotels are opening this summer (with c.1000 rooms to fill), and the Moroccan government have announced that phase 1 will open this summer. These two factors will start a marketing engine promoting Mediterrania Saidia to holidaymakers. It is the success, or not, of this marketing engine that will determine how long is long-term.

[just-alex]

I was just wondering with all this talk of high rental yields why no-one has mentioned the dificulties of actually getting there.!!!!

If the expansion of OUjda airport overruns by as much as everything else people are going to be deprived of income.

[Mr Ri]

just-alex

I agree its relatively difficult to get to Mediterrania Saidia from the UK at the moment. But not so difficult from mainland Europe - France, Spain, Belgium and Germany all have a number of direct flights to Oujda, Nador and Mellila.

The expansion of Oujda airport is important, but not immediately essential. Oujda, Nador and Mellila airports can still receive flights, and are within a reasonable transfer distance from Mediterrania Saidia (although the border at Melilla is a pain).

In my experience, it will take at least one year of being open to tourists before a reasonable rental market gets going, and some owners will not get early returns. But a big indicator will be seeing how the hotels fair when they open this summer, and whether this accelerates the completion of other infrastructure (given that commercial operations can begin to get some returns from their investments).

[just-alex]

just-alex

Well....I disagree. As someone who travelled extensively in the past with small children on family holidays I can assure you that a direct flight from the country of origin is essential and will influence choice of destination.
Having to juggle two different flight bookings is time consuming and a real hassle.
In addition to that the system of baggage and allowances between different carriers is a nightmare. At the moment luggage allowances are approximately5 to 10kgs less than they used to be. Hand luggage allowances vary enormously not just from carrier to carrier but from airport to airport. Excess baggage charges are also variable as are maximum loads between different types of aircraft.
I have been in the position of travelling with one carrier who permitted my luggage for two months stay to travel with me free of charge only to then be charged almost 300 euros by the onward carrier for the second stage of the flight.
In addition having to handle luggage twice is a real problem for people like me with limited mobility. I imagine that golfers will also not be too happy at having to manhandle bulky clubs twice as well........
All in all I feel that many promises were made about direct flights being available and that flight times published on various agents websites and developers publicity are grossly misleading qouoting times of two or three hours flying time from London.......in fact it can take up to a whole day with a five hour changeover or overnight stay involved depending on route, time and availability.
The fact is that it is the Brits who are being disadvantaged by delays in development of property and hotels by up to two years which has had a knock on effect on flights and the delay of work on Oujda airport will add to that.

[Mr Ri]

just-alex

I think we're discussing different subjects.

I was considering rental returns and that owners will need to market their properties to French, German and Spanish holidaymakers until the UK flights get going.

You're complaining about delays to direct flights between the UK and Oujda.

Perhaps you should start a new thread about direct flights from the UK.

Mr Ri

[fws]

Of course there aren't direct flights yet - there's no demand. As the resort gets built,the demand will grow and more flights will be put on. The airlines aren't going to fly there until the holidaymakers want to go. There will be the travel companies' huge buying and marketing power going into co-ordinating everything. It just takes time to all come together. It will - a brand new destination on this scale takes longer than buying somewhere established. Too many people are panicking far too early.

[just-alex]

AS I pointed out , the only reason why there's no demand is that the resort is delayed by almost two years!!!!!!!!

[Investy]

Just Alex, your right, lack of direct flights will impinge on demand, however, there will be direct flights once the development fully opens. The Moroccan authorities are expanding the local airport in light of expected demand from up to 11 onsite hotels (Barcelos largest N African hotel for example) and the rented non hotel units.