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What will happen in Agadir’s real estate market? Will prices go up or down? Is Agadir still a hotspot for foreign investors? How is Morocco’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Agadir, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) City center yields will fall as property prices rise faster than rents
In Agadir's city center, property prices have surged in 2023 and 2024.
For instance, the median price for an apartment has climbed to MAD 13,202 per square meter, while houses are averaging MAD 17,241 per square meter. This shows a strong upward trend in property values, making it a hot spot for potential buyers.
On the flip side, rental prices haven't caught up. The average gross rental yield is holding steady at around 5.98%. This means rental income isn't growing as fast as property prices, which could affect your return on investment if you're looking to rent out a property.
Historically, rental yields in Agadir have fluctuated between 5.17% and 6.79%, but the average has stayed at 5.98%. This stability in yields, despite rising property prices, highlights a preference for property ownership over renting in Morocco.
As property prices continue to rise, yields in the city center are likely to decline, as rental growth lags behind. This trend is something to consider if you're thinking about investing in Agadir's real estate market.
Sources: Global Property Guide, Properstar
2) Rental yields in coastal areas will increase as short-term rentals become more popular with tourists
Rental yields in coastal areas like Agadir are climbing as short-term rental platforms gain traction with tourists.
In 2024, Agadir welcomed 1.167 million tourists, a jump of 14.01% from the previous year. This influx is a major driver for the booming short-term rental market. Tourists are increasingly opting for these rentals, which offer a more personal touch than hotels.
Platforms such as Airbnb are thriving, with 1,682 active listings in Agadir by September 2024. These properties are booked for about 182 nights annually, showing a median occupancy rate of 50%. This high demand highlights the appeal of short-term rentals, which often provide a more affordable and unique experience.
Agadir's rental yields are impressive, with an average gross rental yield of 5.98%, surpassing the national average. The surge in tourist numbers is pushing rental prices up, making coastal properties a hot commodity. This trend is reshaping the local real estate market, with both rental yields and property values on the rise.
As tourism continues to flourish, the economic benefits are clear. The increased demand for short-term rentals is not only boosting rental yields but also enhancing the overall property market in Agadir. Investors are taking note, seeing the potential for lucrative returns in this vibrant coastal city.
Sources: Global Property Guide, Hespress, Airbtics
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Morocco versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Property prices in Anza will rise as it becomes popular for eco-friendly developments
The Anza district is on the brink of a price surge as it becomes a hub for eco-friendly developments.
One major factor is the €36 million green bond issued by Agadir in 2022, which funds projects like solar street lighting and green spaces in Anza. This financial backing underscores the area's potential for sustainable growth. The district's transformation from an environmentally degraded area to a thriving tourist destination is a testament to local efforts in preserving its natural beauty, drawing in more eco-conscious buyers and investors.
Government incentives are also pivotal. The Agadir urban development program is packed with projects to enhance green spaces and public lighting, showing strong government support for eco-friendly initiatives. This backing is a magnet for developers and buyers keen on sustainable living.
Successful eco-friendly projects in Anza further boost its appeal. The relocation of a cement factory and the establishment of wastewater treatment facilities have led to significant environmental improvements. These initiatives highlight the effectiveness of eco-friendly projects in enhancing the area's attractiveness and potentially increasing property values.
As Anza continues to evolve, the district is becoming a sought-after location for those interested in sustainable living. The combination of financial investment, government support, and successful eco-friendly projects makes it a prime spot for future growth.
Sources: Afrik21, Etlettres, Jumelages Partenariats
4) More foreigners will invest in Agadir’s real estate as it becomes known as a retirement destination
Foreign interest in Agadir's real estate is on the rise as the city becomes a popular retirement spot.
Since 2020, there's been a noticeable uptick in property purchases, with a 30% increase in requests for second homes and a 27.5% jump in villa sales. This trend shows that more foreigners are eyeing Agadir as a place to settle down.
Agadir's climate is a big draw, offering temperatures between 20°C and 30°C year-round. This makes it a perfect escape for those tired of colder climates. The city's reputation as a retirement haven is growing, thanks in part to media coverage that frequently highlights its appeal.
Infrastructure and healthcare improvements are also key. The Agadir 2020-2024 Urban Development Program is adding new health centers, including a Day Clinic in Ihchach and a university hospital center with over 860 beds. These upgrades make Agadir even more attractive for retirees looking for quality healthcare.
With these developments, Agadir is becoming a top choice for international retirees seeking a comfortable and convenient lifestyle. The combination of a pleasant climate, improved facilities, and a welcoming atmosphere is hard to resist.
Sources: Atlas Original, DBS Morocco, Hibapress
5) City center property values will rise as urban revitalization projects boost the area's attractiveness
Properties in Agadir's city center are on the rise thanks to exciting urban changes.
One major boost comes from the Al-Inbiâat Urban Park Project, which is turning the area into a vibrant hub with modern amenities. This project is not just about green spaces; it's about creating a lively environment that attracts both locals and tourists.
Tourism is another big player here. By November 2024, Agadir saw 1.27 million tourists, a jump of 15% from 2019. This influx of visitors is driving up demand for city center properties, making them more valuable.
The government is also stepping up with the Urban Development Program 2020-2024. They're working on transforming Agadir into a modern metropolis by improving infrastructure and adding cultural and sports facilities. This makes the city center a more attractive place to live and work.
Public transportation is getting a facelift too, making it easier to get around. This improved connectivity is a big draw for people looking to move to the city center, boosting its appeal even more.
With all these changes, it's no wonder that property prices in the city center are climbing. The combination of urban revitalization, tourism growth, and government initiatives is creating a perfect storm for property appreciation.
Sources: Arab Urban, Born2Invest, Agadir 2027
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6) Property prices in Agadir will keep rising as it becomes a more popular tourist spot
Agadir is buzzing with excitement as 7 million tourists flocked to the city in just seven months of 2024.
This influx of visitors is driving up demand for vacation rentals, making coastal properties a hot investment due to their attractive rental yields and potential for appreciation.
The Moroccan government is aiming for 17.5 million visitors by 2026, which bodes well for property investors eyeing the city.
Hotel occupancy rates are climbing, signaling a strong need for accommodations, including residential properties, as more tourists discover Agadir's charm.
New international flight routes, like the direct link between Agadir and New York, are expected to draw in wealthier tourists, boosting real estate investment returns.
Developments like the Taghazout Bay district are adding to Agadir's allure, making it a prime spot for real estate enthusiasts.
Sources: SMIT, Kensington Morocco
7) Demand for luxury real estate in Agadir's coastal areas will keep rising due to foreign buyers
Foreign buyers are set to keep boosting demand in Agadir's luxury real estate market, especially along the coast.
There's been a noticeable uptick in foreign direct investment in real estate, with a jump of over 55% by 2024. This influx has attracted more international players, nudging property prices upward. The Moroccan government is making it easier for foreign investors by offering tax breaks and simplifying the buying process, which is particularly enticing for Asian investors, especially those from China.
Luxury real estate projects in coastal spots like Taghazout Bay and the new Agadir Marina are pulling in wealthy international buyers. These areas boast high-end amenities like 5-star hotels and championship golf courses, leading to a 15% rise in property values over the past three years. The Agadir Marina, a massive 6 billion dirham project, is turning the waterfront into a vibrant, luxurious hub, further luring international interest.
Agadir's luxury real estate market also offers high rental yields of up to 12% for well-located properties. This is a big draw for investors seeking unique, authentic experiences that blend modern luxury with traditional Moroccan charm. Favorable exchange rates and Morocco's stable economy, with GDP growth expected to hit 4.0% in 2025, add to the confidence foreign buyers have in Agadir's real estate market.
Sources: Kensington Morocco, Le Figaro Properties, Agadir Properties
8) Fewer foreign investors will buy in Agadir due to stricter property ownership rules
Morocco's new property rules are making it tougher for foreign investors in Agadir.
One big change is that foreigners can't own agricultural land unless it's reclassified, which could put off those eyeing farmland around Agadir. This is a significant shift for anyone considering investing in the region's agricultural potential.
On top of that, the process to register property titles in Morocco is complex and time-consuming. Many find the local procedures daunting, which might make them think twice about investing here. In other places like India, similar rules have led to a drop in foreign investments, hinting that Agadir might see the same.
Real estate agents are noticing fewer inquiries from foreign buyers, likely due to these new rules. Even though Morocco's foreign direct investment went up in 2024, these stricter regulations could turn that trend around. Legal experts point out that the property laws, especially for agricultural land, are tricky, which could further scare off investors.
For those considering buying property in Agadir, it's crucial to understand these changes. The new regulations are not just about ownership but also about navigating a complicated legal landscape. This could mean more time and effort to secure a property.
So, if you're thinking about investing in Agadir, be prepared for a more challenging process. The landscape is changing, and it's important to be aware of how these regulatory shifts might affect your plans.
Sources: CEIC Data, Mayer Brown, Baker McKenzie
We have made this infographic to give you a quick and clear snapshot of the property market in Morocco. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Property prices will rise in popular neighborhoods as more foreign buyers enter the market
Agadir's property market is heating up as foreign buyers flock to its most sought-after neighborhoods.
Since 2023, Agadir has become a hotspot for international property seekers, thanks to its pleasant climate and modern infrastructure. The demand for second homes has surged, with a notable 30% increase in requests since 2020. Villa sales have also seen a significant jump, rising by 27.5% year-over-year in late 2022.
European buyers, in particular, are drawn to Agadir, seeking second homes that offer both home workspaces and independent villas. This trend mirrors the tourism boom in the area, which has spurred foreign investment in luxury residential complexes. Such developments often lead to higher property prices, similar to what has been observed in places like Costa del Sol, Spain.
Agadir's allure extends to retirees, who are attracted by its mild climate and affordable living costs. This demographic shift has further fueled the rise in property prices and rental yields. The Moroccan government has played a role in this trend by implementing policies that encourage foreign investment, such as simplifying procedures and offering tax incentives.
These government initiatives have made Morocco, and Agadir in particular, more appealing to foreign investors, driving up both demand and prices. The media has also spotlighted Agadir as a prime location for foreign buyers, adding to its growing reputation as a desirable destination.
Sources: Kensington Morocco, CBS News
10) Agadir’s property prices will drop moderately as new housing projects boost supply
The real estate market in Agadir is set for a moderate decline in prices as new housing projects increase supply.
Agadir is buzzing with construction, as the number of building permits has surged, signaling a boom in new housing. This means more homes are popping up, which could naturally lead to a dip in property prices.
In 2024, Agadir welcomed over 8,000 new residential units, thanks to hefty investments in infrastructure and tourism. Big projects like the Taghazout Bay luxury resort and the City of Innovation are adding to the housing stock, making the market more competitive.
The government is also in on the action, pushing affordable housing through the Damane Assakane fund. This initiative is not just about boosting demand; it's also about increasing the supply of homes, which might nudge prices down a bit.
On the demographic front, Agadir's population growth is either stable or dipping slightly. This means the housing demand might not skyrocket to match the growing supply, putting further pressure on prices.
With all these new homes and a steady population, the market might not absorb everything quickly, leading to a gentle slide in property prices.
Sources: Kensington Morocco, Hindustan Times
11) Rental yields in suburban areas will rise as more families look for affordable housing outside city centers
Families are increasingly choosing to live in suburban areas like Agadir.
With city center rents skyrocketing, many families are looking for more affordable options. In Agadir, for instance, the average daily rate for short-term rentals in the city center is MAD516, which is quite steep for many. This has led families to explore suburban areas where they can get more space for their money.
Suburban areas are becoming more appealing due to improved infrastructure and amenities. New housing projects now offer modern perks like swimming pools and gardens, making these areas even more attractive. Plus, better transportation links, including affordable car rentals, make commuting from the suburbs to the city center a breeze.
As more families move to the suburbs, the number of short-term rental listings in these areas is growing. This indicates a strong interest in living outside the city center, as families seek a balance between affordability and quality of life.
Suburban living offers a chance to escape the hustle and bustle of the city while still enjoying modern conveniences. With the development of new amenities and improved transportation, families find suburban areas a viable alternative to city life.
Expect suburban rental yields to rise as more families opt for these affordable and spacious living options. This trend is reshaping the housing market, making suburban areas a hot spot for both renters and investors.
Sources: Global Property Guide, CozyCozy, Airbtics, Kayak
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12) Property values in Yachech will drop as infrastructure upgrades fall behind other neighborhoods
The Yachech neighborhood in Agadir is facing challenges as property values are expected to decline due to lagging infrastructure improvements.
According to the Agadir Communal Action Plan (PAC) for 2022-2027, 26% of planned projects are currently on hold because of land and geotechnical issues, which could slow down development in areas like Yachech.
The PAC needs over $400 million in funding, but only $250 million has been allocated by the municipal council. The rest is expected to come from the private sector, which might not evenly distribute investment across all neighborhoods, including Yachech.
Real estate market reports highlight that neighborhoods like Founty and Dakhla are more attractive due to better infrastructure and proximity to tourist areas. This results in higher demand and rental yields, making them more appealing compared to Yachech.
Yachech's lagging infrastructure could make it less appealing to potential buyers, potentially causing property values to decline as other areas continue to develop more rapidly.
Sources: Arab Urban Development Institute, Agadir Properties, UN Habitat
13) Property values in Talborjt will rise significantly as it gains a reputation as a cultural and artistic center
The Talborjt area in Agadir is quickly gaining fame as a cultural and artistic hotspot.
Thanks to major investments, like the city's new marina project, the waterfront is transforming into a lively district buzzing with cultural activities. This has led to a rise in art galleries and cultural centers, drawing in a wealthy international crowd eager to experience the vibrant scene.
The Moroccan government is also playing a big role by promoting Agadir as a cultural hub, with a special focus on Talborjt. They're working hard to boost infrastructure and services in the area, making it even more appealing to visitors and potential residents.
Real estate market reports show that property values in culturally rich areas are on the rise. For instance, Taghazout Bay has seen a 15% increase in property values over the past three years. This trend is making Talborjt an attractive option for both locals and expats who crave a culturally vibrant neighborhood.
Surveys reveal a growing interest in living in areas rich with culture, which bodes well for Talborjt. The area is becoming a magnet for those looking to immerse themselves in a lively and artistic environment.
Sources: Kensington Morocco, Global Property Guide, Ascendix Tech
14) Property prices in Founty will drop due to an oversupply of new developments saturating the market
The Founty neighborhood in Agadir is seeing a surge in new property developments, with over 8,000 new residential units completed in 2024 alone.
While developments like the Taghazout Bay luxury resort were expected to boost property values, they have also sparked concerns about market saturation. As more properties hit the market, vacancy rates in existing homes are likely to rise, a trend already observed in Agadir.
Real estate agencies, such as Properstar, highlight a high inventory of unsold properties in Founty, suggesting that the oversupply could lead to a drop in prices. This is a common scenario when too many homes are available, and not enough buyers are interested.
The rental market in Agadir, including Founty, is also feeling the heat. With an average gross rental yield of around 5.98%, it's lower than in cities like Marrakesh and Tangier, indicating that the rental market might be under pressure.
Comparative analyses show that Founty has experienced slower price growth compared to other neighborhoods, hinting at potential oversupply issues. This slower growth is a red flag for potential buyers looking for quick returns on investment.
Sources: Global Property Guide, Properstar
We made this infographic to show you how property prices in Morocco compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Property values in Bensergao will rise steadily because of its closeness to new commercial developments
The Bensergao area is becoming a hot spot for property buyers due to its proximity to new commercial developments in Agadir.
One major draw is the increased investment in commercial infrastructure, like the Port expansion project. This project is set to boost Agadir's economy, which will likely lead to a rise in real estate demand in nearby areas such as Bensergao.
The local government is also shaking things up with urban development and zoning changes. Agadir is in the midst of a major urban transformation, with initiatives like the City of Innovation driving demand for upscale properties. These changes are part of a broader plan to support commercial growth in the city.
Transportation improvements are another big factor. Agadir is enhancing its network, including a new direct air link to New York planned for 2024. This will make the area more accessible, likely attracting more visitors and boosting property values in Bensergao.
With these developments, Bensergao is poised for a steady increase in property values, making it an attractive option for potential buyers looking to invest in a promising area.
Sources: Kensington Morocco, Global Property Guide
16) Rents in Agadir will rise as more international students and professionals move in
Rents in Agadir are on the rise as the city becomes a hotspot for international students and professionals.
Agadir is seeing a surge in international students, thanks to Morocco's push to promote its educational institutions. This means more students are choosing Agadir for their studies, which naturally boosts the demand for rental housing. With more students arriving, landlords are finding it easier to fill their properties, leading to increased rental prices.
Short-term rentals are also in high demand. Agadir's Airbnb scene is thriving, with a median occupancy rate of 50% and an average daily rate of MAD516. This popularity in short-term stays often pushes up long-term rental prices. Plus, the city is attracting more expatriates as multinational companies set up shop, bringing in professionals who need housing, further driving up rents.
Infrastructure upgrades are making Agadir even more appealing. The city is undergoing major improvements, like redeveloping the cornice and upgrading roads. These changes make Agadir more attractive to both residents and newcomers, increasing the demand for rentals. The expansion of international schools and educational facilities is another draw, bringing in students and their families who need places to live.
With these developments, it's no surprise that rental demands are climbing. The combination of educational growth, infrastructure improvements, and a booming short-term rental market is creating a perfect storm for rising rents. As Agadir continues to evolve, it's becoming a more desirable place to live, work, and study.
Sources: Hespress, Agadir 2027, ICEF Monitor, Airbtics
17) Suburban rents will increase as families look for bigger homes outside the city center
Families are increasingly opting for larger homes in the suburbs due to the rise of remote work.
With remote work becoming the norm, many families are leaving the hustle and bustle of city life for the peace and space of the suburbs. This shift is causing a surge in demand for suburban homes, which in turn is driving up rent prices in these areas. People are looking for more room to accommodate home offices and outdoor spaces, making suburban living more appealing.
City centers, like Agadir, are seeing a spike in property prices, pushing families to seek more affordable options elsewhere. The suburbs offer a solution, providing larger homes at a lower cost. This trend is making suburban areas increasingly attractive, further escalating rent prices as more families make the move.
Agadir's metropolitan area is experiencing a population boom, with a 1.94% increase from 2023 to 2024. This growth is largely happening in the suburbs, where families can find the space they need. As more people flock to these areas, the demand for housing rises, leading to higher rents.
Suburban living is becoming the go-to choice for families seeking a balance between work and home life. The need for larger living spaces is a key driver, as families prioritize comfort and flexibility. This shift is not just a trend but a significant change in how people choose to live, with rents in the suburbs expected to continue rising.
As families continue to prioritize space and affordability, the suburbs are becoming the new frontier for housing. This movement is reshaping the real estate landscape, with suburban areas seeing a steady increase in demand and, consequently, rent prices.
Sources: Credaily, Macrotrends
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18) More international buyers will be drawn to Agadir as virtual reality tours become a standard for property viewings
Virtual reality tours are revolutionizing the real estate scene, especially in Agadir.
Imagine browsing properties from your couch; that's what VR tours offer. They’ve become a favorite among international buyers, with listings featuring these tours getting 87% more views than those without. It's a game-changer, as 63% of buyers are now willing to bid on homes they haven't physically visited.
For many, virtual tours are no longer optional. A whopping 75% of potential buyers see them as essential before making a decision. In fact, more than half wouldn't even consider a property without a 360-degree view, showing just how crucial this tech has become.
Thanks to tech advancements, VR tours are now more accessible and affordable. With AI and predictive analytics, these tours are not only high-quality but also help predict real estate trends. This means buyers can explore properties and chat with agents from anywhere in the world.
Agadir's real estate market is thriving, partly due to the rise of virtual tours. Agencies are using them to draw in international buyers, and the media spotlight on VR benefits has only increased property visibility. The pandemic pushed this trend further, making VR tours a must-have tool for many.
Sources: LLC Buddy, Walkly, Kensington Morocco, EZ Real Estate Tools
19) Local real estate investors will change strategies due to new property tax laws
Changes in property tax laws are reshaping how local real estate investors decide on their investments.
Take Colorado, for instance, where recent tweaks in property tax laws have shifted the valuation rates for residential properties. This means some homes are now more enticing to investors than others. Investors are now rethinking their strategies, eyeing properties that promise better returns under these new tax conditions.
In Minnesota, the government has slashed tax rates for affordable housing, making these properties a hot ticket for investors. By easing the tax load, the state is nudging investors towards affordable housing, pulling their attention away from other property types. This is a clear example of how tax law changes can steer investor choices.
Even in places like Agadir, Morocco, the same logic holds. If Agadir's property taxes are higher than in other cities, investors might start looking elsewhere for better deals. This shift can shake up the local real estate scene as investors adapt to the new tax landscape, always on the hunt for the best returns.
Talking to local real estate investors can shed more light on these shifts. If they show a preference for properties with lower taxes, it backs up the idea that tax law changes are indeed influencing investment strategies. Plus, media reports and expert insights can paint a broader picture of how these tax tweaks are affecting investor behavior.
In the end, property tax changes are a game-changer for local real estate investors, prompting them to rethink where and how they invest. The ripple effects of these changes are felt across the market, as investors adjust their strategies to align with the new tax realities.
Sources: Colorado Property Tax Changes, Minnesota Property Tax Adjustments, General Real Estate Trends
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.