February 2023
EMC RE have been active across Morocco for over ten years servicing property requirements for governments, corporations and investors. We recently visited the country to review retail property in Casablanca and the industrial property market in Tangier. Travelling between the two cities on the new high-speed train which, at times, reached in excess of 300km per hour, we passed the Mohammed VI Tower. At a height of 250 metres, the development will briefly be the tallest completed building in Africa before being overtaken by the Icon Tower (393.8 metres) in the New Administrative City in Egypt. When complete later in 2023 the Mohammed VI Tower will provide residential, hotels and office accommodation.
The infrastructure of Morocco has significantly improved over the last ten years which is one of the benefits for international corporations who are increasingly looking to use Morocco as a base for business including logistics, manufacturing, assemble and call centres. Tangier’s strategic situation at the mouth of the Mediterranean and a mere 23 km (13 miles) from mainland Europe, has made it a natural alternative for the automotive sector. An industry currently looking at reassessing its footprint as a result of the war in the Ukraine and in the aftermath of COVID. However, not all manufacturers are finding Tangier advantageous, with Siemens suggesting that the decision to close their wind turbine blade manufacturing factory in 2023, located at the Tangier Automotive City (TAC), was taken from a global perspective that accounted for changing market demands, increased competition, and the impact of a severe supply chain crisis resulting from COVID and the war in the Ukraine.
Ian Lawrence and Michael Lowes of EMC RE visited the Tangier Freezone (TFZ). The TFZ was developed in 1999, on a total area of 400 ha (376 lots). It provides industrial investors with a suitable environment to realise their projects, with high quality infrastructure and significant benefits such as free zone status, a diversified commercial offering and proximity to the city of Tangier. The TFZ is fully occupied with companies now looking outside the TAC for new requirement. The TAC has attracted 35 factories since being inaugurated in 2012. We were shown around one facility that was built from start to finish in 12 months and will provide employment for 1,200 people. Rents for logistic space range from Euro 5.00 to Euro 5.50 per sqm / sqm.
For more information on the real estate market in Morocco, please contact us here.
