The Moroccan tourism industry is undergoing a revolution as King Mohammed IV unleashes the forces of progress long held in check by his father. Foreign investment and developers are pouring into the country as his vision to boost tourist numbers to 10 million begins to take shape.

As well as Morocco's picturesque mountain range and coastline, Marrakech will be central to his plans. Vast tracts of land around the city have been earmarked for new hotels, residential districts, boulevards and a major airport.

Marrakech has long been fashionable with the French cultural elite. Both Jean-Paul Gautier and Yves Saint Laurent have villas there.

Demand for second homes is high and luxury villas are springing up in new residential quarters on the outskirts of the medina, or old town.

"Marrakech is the shortest distance you can travel from Europe and end up somewhere genuinely different," said Wiltshire-based developer Michael Dupree, who has started work on Domaine Dar Chmicha, a development of nine villas in an old olive grove in the commune of Tassoultante.

The homes surround the Villa Alexandra, an older-style house restored by the English antiquarian Michael Telford-Smollet, which is available for rent if you want to sample the area.

Construction of the villas is due to begin shortly and properties will be within an enclosed development that boasts 1.5 acres of land including a swimming pool. Kitchens and bathrooms will be fully fitted in an attractive style while other decorative features are available.

Dupree will also arrange separate contracts to investors wanting to hire staff and rent out villas.

Marrakech's central square, with its labyrinth of souks selling exotic Moorish crafts, is legendary.

Inside the walls of the medina, Moorish houses built around a fountain courtyard — known as riads — are popular with European buyers. Many have been restored into quaint hotels but hundreds are still for sale. However, haggling with Moroccan labourers is a time-consuming skill.

If a ready-made riad takes your fancy, Hamptons International is marketing a new development which will include two- and three-bed riads, each with an open courtyard and pool, set within the lush grounds of a Four Seasons hotel. The whole development will be built in traditional Moorish style and lease-back deals will be available on selected properties. Situated right next to the conference centre, the hotel expects year-round demand from clients.

Imoinvest UK, a London-based agent, has just released details of a new development in the North Palm Grove area of Marrakech. The private development will include 18 villas with pools and gardens overlooking the stunning Atlas mountains.

Domaine d'Abraj is available as a lease-back investment with a guaranteed rental income of six per cent.