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Casablanca offers rental yields ranging from 4% to 8% annually, with studio apartments and small units delivering the highest returns.
The city's rental market shows strong demand across different property types, with apartments in premium neighborhoods like Anfa and Gauthier commanding top rental rates while smaller units provide better yield percentages for investors.
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Casablanca's rental market offers yields between 4-8% depending on property type and location, with studio apartments delivering the highest returns at up to 8% annually.
Premium neighborhoods like Anfa, Gauthier, and Maarif command the highest rental rates, while purchase costs including fees and taxes typically add 6-10% to the initial investment.
| Property Type | Average Purchase Price (MAD/m²) | Monthly Rent Range | Rental Yield | Best Areas |
|---|---|---|---|---|
| Studio/1-bedroom | 700,000 MAD/unit | 1,650-3,000 MAD | 6-8% | All districts |
| Apartments | 13,900 MAD/m² | 4,000-8,000 MAD | 4-8% | Anfa, Gauthier, Maarif |
| Houses | 10,000-16,000 MAD/m² | 7,000-12,000 MAD | 5.3% | Bourgogne, CFC |
| Villas | 20,500 MAD/m² | 10,000-20,000+ MAD | 4-5% | Californie, Ain Diab |
| Short-term rentals | Varies by type | Higher daily rates | 8-12% | Tourist areas |
How much do apartments, houses, and villas typically cost to buy in Casablanca right now?
As of September 2025, apartment prices in Casablanca average 13,900 MAD per square meter in upscale city center areas like Gauthier, Anfa, and Maarif.
Cheaper districts start around 6,000 MAD per square meter, while premium locations can reach up to 22,000 MAD per square meter. Studio apartments typically cost around 700,000 MAD, with prices ranging from 650,000 MAD to 1,360,000 MAD depending on location and amenities.
Villa prices are significantly higher, averaging 20,500 MAD per square meter across the city. Luxury districts like Californie and Ain Diab can reach 25,000 MAD per square meter, making villas the most expensive property type in Casablanca's residential market.
Houses fall between apartments and villas in terms of pricing, typically ranging from 10,000 to 16,000 MAD per square meter. Interestingly, houses have shown the strongest price appreciation recently, growing by about 5.3% annually and outpacing both apartments and villas in percentage growth.
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What are the average monthly rents for different property types and sizes in the main neighborhoods?
Rental rates in Casablanca vary significantly based on property type, size, and neighborhood location.
One-bedroom apartments in the city center command monthly rents between 4,000 and 6,000 MAD, while similar units outside the center rent for 2,500 to 4,000 MAD monthly. Studio apartments typically rent for approximately 1,650 MAD per month, based on annual rental data of around 19,793 MAD.
Larger apartments see proportionally higher rents, with two-bedroom apartments in areas like Racine renting for about 8,000 MAD monthly, and three-bedroom apartments averaging around 4,750 MAD monthly across the city. Premium apartments and villas in upscale neighborhoods can command 10,000 to 20,000+ MAD monthly, depending on size and specific location.
The main neighborhoods offering premium rental rates include Anfa, Gauthier, Maarif, Ain Diab, Racine, and Bourgogne, where expatriates and professionals are willing to pay higher rents for quality locations and amenities.
How does the rental yield differ between apartments, houses, and villas?
Rental yields in Casablanca vary significantly across different property types, with smaller units generally offering better returns.
Apartments deliver the most variable yields, ranging from 4% to 8% annually depending on size and location. Smaller apartment units, particularly studios and one-bedroom apartments, achieve the highest yields of up to 7.94% due to their lower purchase costs and strong rental demand from singles and couples.
Houses currently yield around 5.3% annually and are particularly sought after by families who value the additional space. The house segment has shown strong recent performance with good price appreciation complementing steady rental income.
Villas typically generate the lowest yields at 4-5% annually, but they offer strong price appreciation potential, especially in prime districts like Californie and Ain Diab. While the immediate rental return is lower, villa owners often benefit from significant capital gains over time.
The overall Casablanca rental market averages between 4-7% gross yield, with the specific return depending heavily on property type, location, and management quality.
What are the most in-demand areas in Casablanca for rental properties today?
The most sought-after rental areas in Casablanca center around premium neighborhoods that attract expatriates, professionals, and affluent families.
Anfa, Gauthier, and Maarif represent the top tier of rental demand, offering excellent infrastructure, proximity to business districts, and quality amenities. These areas consistently deliver high yields and strong rental demand from both local and international tenants.
Racine, Bourgogne, and CFC form the second tier of premium rental locations, providing good rental rates while being slightly more accessible than the top-tier neighborhoods. These areas particularly appeal to families and professionals seeking quality housing at relatively more moderate prices.
Ain Diab and Californie cater to the luxury rental market, commanding the highest rental rates for villas and premium apartments. These coastal and upscale areas attract high-income tenants willing to pay premium rates for exclusive locations and superior amenities.
How do yields compare across surface sizes, from studios to large family homes?
Rental yields in Casablanca show a clear inverse relationship between property size and yield percentage.
| Property Size | Typical Rental Yield | Target Tenant Profile | Rental Demand Level | Management Complexity |
|---|---|---|---|---|
| Studios | 7-8% | Young professionals, students | Very High | Low |
| 1-bedroom apartments | 6-8% | Singles, couples | High | Low |
| 2-bedroom apartments | 5-7% | Small families, professionals | High | Medium |
| 3-bedroom apartments | 4-6% | Families, expatriates | Medium | Medium |
| Large family homes/villas | 4-5% | Large families, executives | Medium | High |
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What is the impact of purchase fees, property taxes, and management costs on the actual net yield?
Purchase fees, ongoing taxes, and management costs significantly impact net rental yields in Casablanca, typically reducing gross yields by 1-2 percentage points.
Purchase fees add 6-10% to the initial investment cost, including notary fees (1.5-2.5%), registration fees (4-6%), agency commissions (2-3%), and land registry costs (1%). These upfront costs must be factored into the total investment when calculating actual returns.
Annual property taxes range from 0.5% to 1% of the property's rental value, plus an additional 10% urban tax for occupied properties. The exact rate depends on the municipality and the property's assessed rental value, with some properties facing rates as high as 10-30% of rental value in certain circumstances.
Ongoing operational costs include common charges of 300-1,000 MAD monthly for apartments, and professional property management typically costs 5-10% of rental income. These recurring expenses must be deducted from gross rental income to determine true net yields.
When all fees, taxes, and management costs are considered, investors should expect net yields to be approximately 1-2 percentage points lower than the gross yields commonly advertised in the market.
How does financing with a mortgage change the overall profitability versus paying cash?
Mortgage financing in Casablanca significantly alters investment profitability compared to cash purchases, with current lending rates averaging 5.18% as of Q2 2025.
Cash buyers enjoy higher immediate net yields since they avoid interest payments and benefit from the full rental income minus operating expenses. This approach provides more predictable returns and eliminates the risk of interest rate fluctuations affecting profitability.
Financed purchases can boost return on equity if property appreciation exceeds mortgage costs, but monthly cash flow is typically lower than cash purchases due to mortgage payments. Investors using leverage must ensure that rental income covers mortgage payments, taxes, and operating expenses while still providing adequate returns.
The key consideration is whether the leveraged return on equity exceeds what could be achieved by investing the cash elsewhere. With mortgage rates at 5.18%, properties need to generate total returns (rental yield plus appreciation) above this threshold to justify financing over cash purchase.
Financing also provides the advantage of preserving capital for diversification across multiple properties, potentially spreading risk and increasing overall portfolio returns despite lower per-property net yields.
What is the typical vacancy rate by property type and by neighborhood?
Vacancy rates in Casablanca vary significantly between property types and neighborhoods, directly impacting actual rental yields.
Long-term apartment rentals typically experience vacancy rates of 10-15% in non-central areas, while premium neighborhoods see much lower vacancy rates of 5-7%. The better infrastructure and higher demand in upscale areas like Anfa and Gauthier help maintain consistent occupancy.
Short-term rentals face different vacancy patterns, with median occupancy rates around 35% across the city. However, well-located and well-managed short-term rental properties can achieve occupancy rates above 77%, significantly improving their profitability.
Villas and large houses generally experience higher vacancy rates, especially during off-peak seasons or when targeting the luxury market. These properties may face vacancy periods of 10-20%, partly due to their higher rental costs and smaller target tenant pool.
Location plays a crucial role, with properties in business districts and well-connected neighborhoods maintaining lower vacancy rates than those in peripheral areas or locations with limited amenities and transportation links.
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How do rental yields differ for short-term rentals like Airbnb compared to long-term leases?
Short-term rentals in Casablanca offer significantly higher gross yields than long-term leases but come with increased complexity and risk.
Short-term rentals through platforms like Airbnb typically generate annual gross yields of 8-12% for well-located units, compared to 4-7% for traditional long-term leases. The higher daily rates more than compensate for the additional vacancy periods in successful short-term rental operations.
However, short-term rentals require substantially more management, including guest communication, cleaning between stays, maintenance, and marketing. These additional costs and time commitments can reduce net yields and require either significant personal involvement or professional management services.
Long-term leases provide more stable and predictable income with lower management requirements, making them suitable for passive investors. While gross yields are lower, the reduced operational complexity and more consistent cash flow often appeal to investors seeking steady returns.
The choice between short-term and long-term rentals often depends on the investor's available time, management capacity, and risk tolerance, as short-term rentals can experience significant seasonal fluctuations in occupancy and income.
What kinds of tenants usually rent in Casablanca, and how does that affect rental strategy?
Casablanca's rental market serves diverse tenant profiles, each requiring different property features and rental strategies.
Apartment tenants typically include young professionals, expatriates, singles, couples, and students who prefer furnished units in central locations with good transportation links. These tenants value modern amenities, security, and proximity to business districts, and they're often willing to pay premium rates for convenience.
Villa and house tenants consist primarily of families (both local and expatriate), business executives, and some short-term high-end visitors. These tenants prioritize space, privacy, parking, and family-friendly neighborhoods, often signing longer-term leases for stability.
Short-term rental guests include tourists, business travelers, and temporary visitors, mostly solo travelers or couples seeking studio or one-bedroom accommodations. These guests expect hotel-like amenities, cleanliness, and convenient locations near attractions or business centers.
Successful rental strategies involve matching property features to target tenant needs: furnishing for professionals and expatriates, family-friendly features for house rentals, and tourist-oriented amenities for short-term rentals. Understanding tenant preferences helps optimize rental rates and minimize vacancy periods.
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How have rental prices and yields evolved compared to five years ago and compared to last year?
Casablanca's rental market has shown steady growth over the past five years, with prices appreciating roughly 3-7% annually between 2019 and 2025.
Some market segments, particularly new apartments in specific districts, have experienced appreciation exceeding 30% over the five-year period, driven by infrastructure development and increased demand from professionals and expatriates.
Rental yields have experienced a slight compression from approximately 7.75% in 2024 to about 6.72% in 2025, primarily due to purchase prices rising faster than rental rates. This yield compression reflects the market's maturation and increased investor interest in Casablanca real estate.
Over the past year, citywide rental prices have risen modestly, but yields have compressed in some premium areas where purchase price appreciation has outpaced rental growth. This trend suggests that while the market remains attractive, investors need to be more selective about location and property type to maintain strong returns.
Despite yield compression, Casablanca continues to offer attractive returns compared to many regional markets, with stable political and economic conditions supporting ongoing rental demand.
What are the forecasts for rental yields in Casablanca over the next 1, 5, and 10 years, and how does Casablanca compare to other similar large cities?
Rental yield forecasts for Casablanca show a mixed outlook across different time horizons, with the city maintaining competitive positioning among regional markets.
Over the next year, yields are expected to remain relatively stable or experience slight decreases due to continued strong price appreciation outpacing rental growth. Investors should expect yields to stabilize around current levels of 6-7% for most property types.
The five-year outlook projects moderate growth in property prices driven by urbanization and infrastructure development, but yields may continue to compress if rental rates don't keep pace with purchase price increases. However, demand fundamentals remain strong due to population growth and economic development.
The ten-year forecast is more optimistic, with Casablanca projected to outperform many regional cities due to sustained economic growth, infrastructure improvements, and population expansion. The city's role as Morocco's economic hub should support long-term rental demand and yield stability.
Compared to other major cities, Casablanca offers competitive yields: Casablanca (6.72%), Tangier (8%), Rabat (6.68%), and Marrakech (7.08%). While Tangier currently offers higher yields, Casablanca provides better long-term stability and growth potential due to its economic significance.
The biggest upside potential lies in premium locations, small units, and the short-term rental segment, which should continue benefiting from tourism growth and business travel to Morocco's economic center.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Casablanca's rental market offers solid investment opportunities with yields ranging from 4-8%, particularly for smaller units in premium neighborhoods.
While yields have compressed slightly due to price appreciation, the city's economic growth and infrastructure development support long-term rental demand and investment potential.
Sources
- Agenz.ma Property Prices Morocco
- Sands of Wealth Casablanca Price Forecasts
- Sands of Wealth Casablanca Property
- Sands of Wealth Casablanca Real Estate Market
- Tangier Escapade Average Rent Casablanca
- Expatistan Cost of Living Casablanca
- Global Property Guide Morocco Rental Yields
- HAC Morocco Real Estate Insights
- Global Property Guide Morocco Rent Yields
- AirROI Casablanca Report