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Fes offers attractive rental yields ranging from 5% to 10% gross annually depending on property type and location.
The Medina's restored riads deliver the highest returns at 8-10% gross yield, particularly for short-term rentals, while modern apartments in the New City provide stable 5-8% yields with consistent long-term rental demand.
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Fes property market offers competitive rental yields of 5-10% gross annually, with restored Medina riads providing the highest returns through tourist rentals.
Net yields typically run 1.5-2% lower than gross yields after accounting for taxes, maintenance, and vacancy costs, making Fes one of Morocco's most attractive investment destinations.
| Property Type | Average Purchase Price | Monthly Rental | Gross Yield |
|---|---|---|---|
| Medina Riads (Restored) | $200,000 - $600,000 | $1,500 - $3,000 | 8% - 10% |
| Modern Apartments (New City) | $100,000 - $300,000 | $400 - $900 | 5% - 8% |
| Luxury Villas | $500,000 - $2,000,000 | $1,200 - $3,500 | 3% - 6% |
| Student Apartments | $60,000 - $120,000 | $250 - $400 | 5% - 7% |
| Commercial Spaces | $80,000 - $200,000 | $600 - $1,800 | 6% - 9% |
What are the average purchase prices by property type in Fes?
Property prices in Fes vary significantly based on type and location, making it one of Morocco's most accessible investment markets.
Riads in the historic Medina range from $100,000 for properties requiring renovation to over $1,000,000 for fully restored luxury properties. Most investment-grade riads suitable for rental purposes fall between $200,000 and $600,000.
Modern apartments in the New City offer the most affordable entry point, starting at $50,000 for modest flats and reaching $500,000 for luxury units. The sweet spot for rental investors lies in the $100,000 to $300,000 range, which provides good rental demand and appreciation potential.
Villas begin around $300,000 for modern properties in developing areas and can exceed $2,000,000 for luxury estates in prime locations. Development land costs $200-$800 per square meter, while commercial spaces range from $50,000 to $200,000 depending on size and location.
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What are the total acquisition costs including fees, taxes, and registration?
Beyond the purchase price, buyers in Fes must budget for additional costs that typically add 8-16% to the total investment.
Notary and legal fees represent the largest additional expense at 5-10% of the property price. Property registration fees add another 1% of the purchase price, while real estate agent commissions range from 2.5% to 5%.
For a $200,000 property, expect total additional costs of $16,000 to $32,000 on top of the purchase price. These costs are generally lower than many European markets but higher than some other emerging markets.
Foreign buyers have limited financing options, with Moroccan banks typically offering 50-70% loan-to-value ratios at interest rates between 4-6%. This means most international investors need substantial cash for down payments and acquisition costs.
What are the average rental prices for different property types and surfaces?
Rental prices in Fes reflect the city's diverse property market, with tourist-focused properties commanding premium rates.
| Property Type | Monthly Rental (Long-term) | Daily Rate (Short-term) | Target Market |
|---|---|---|---|
| Restored Medina Riads | $1,000 - $3,000 | $80 - $250 | Tourists, Cultural Travelers |
| Modern 2BR Apartments | $400 - $700 | $40 - $80 | Professionals, Expats |
| Modern 3BR Apartments | $600 - $900 | $60 - $120 | Families, Long-term Residents |
| Student Accommodations | $200 - $400 | N/A | University Students |
| Luxury Villas | $1,200 - $3,500 | $150 - $400 | High-end Tourists, Executives |
What is the breakdown of rental yields by property type and neighborhood?
Fes delivers some of Morocco's most attractive rental yields, particularly for well-positioned properties in tourist areas.
Restored riads in the Medina generate the highest gross yields at 8-10% annually, especially when operated as short-term rentals during peak tourist seasons. These properties benefit from strong international demand and premium nightly rates.
Modern apartments in the New City and Agdal districts provide steady yields of 5-8% with lower management requirements. These properties attract long-term tenants including students, professionals, and local families, ensuring consistent occupancy throughout the year.
Unrenovated properties and older homes typically generate lower yields due to restoration costs and potential vacancy periods during renovation. Luxury villas and premium properties often yield 3-6% but offer stronger capital appreciation potential.
How do vacancy rates vary between areas and property categories?
Vacancy rates in Fes depend heavily on property type and target rental market, with significant seasonal variations for tourist-focused properties.
Short-term rentals in the Medina experience occupancy rates exceeding 70% during peak tourist seasons (spring and fall), but face higher vacancy during summer heat and winter months. Annual occupancy typically averages 50-60% for well-managed properties.
Long-term rentals in the New City enjoy much more stable occupancy year-round, with vacancy rates typically below 10% due to consistent demand from students, professionals, and families. The presence of multiple universities and growing business districts supports steady rental demand.
Luxury properties and villas experience more variable vacancy rates, often 15-25% annually, except for premium, well-marketed properties in prime locations that maintain better occupancy through superior amenities and management.
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What is the typical renter profile for short-term versus long-term rentals?
Understanding renter profiles is crucial for optimizing rental strategy and property selection in Fes.
Short-term rental guests primarily consist of international tourists seeking authentic Moroccan experiences, business travelers, cultural enthusiasts, and increasingly, digital nomads attracted to Fes's affordability and rich heritage. These renters prefer furnished historic riads or modern central apartments with full amenities and authentic décor.
Long-term renters include local families, university students from across Morocco and Africa, young professionals working in Fes's growing service sector, and expatriate workers in education and NGO sectors. This market favors unfurnished or partially furnished apartments in modern neighborhoods with good transportation links and practical amenities.
The student market is particularly strong due to Fes's status as an educational center, providing consistent demand for smaller, affordable units near university campuses throughout the academic year.
What are the net yields after deducting taxes, maintenance, and running costs?
Net yields in Fes typically run 1.5-2% lower than gross yields after accounting for all operating expenses and taxes.
Properties generating 8% gross yields usually deliver 6-6.5% net returns once all costs are deducted. Major expenses include rental income tax (with 40% deductible for long-term rentals), property taxes (typically less than 1% of property value annually), maintenance and renovation costs, utility expenses, and property management fees.
Short-term rentals face additional costs including higher utility bills, frequent cleaning, guest supplies, and potential platform commissions, but these are often offset by premium nightly rates during peak seasons.
Periodic vacancy costs and unexpected repairs can further impact net yields, making professional property management and adequate cash reserves essential for maintaining target returns.
What are the financing conditions and typical mortgage terms available in Fes?
Financing options for property purchases in Fes are limited for foreign buyers, requiring substantial cash investments.
| Loan Feature | Moroccan Residents | Foreign Buyers | Requirements |
|---|---|---|---|
| Loan-to-Value Ratio | 70% - 85% | 50% - 70% | Property appraisal, income verification |
| Interest Rates | 4% - 6% | 4% - 6% | Fixed or variable options |
| Loan Term | 15 - 25 years | 10 - 20 years | Age restrictions apply |
| Down Payment | 15% - 30% | 30% - 50% | Plus acquisition costs |
| Documentation | Standard income proof | Extensive documentation | Sometimes residency required |
How do rental yields today compare with one year ago and five years ago?
Fes rental yields have remained remarkably stable over recent years, with modest improvements in certain segments.
As of September 2025, gross yields in the Medina average 8-9% for restored riads and 5-7% for modern developments, representing a slight improvement from 2024 levels of 7-8% and 5-6% respectively. This improvement reflects growing tourist demand and limited quality inventory.
Compared to 2020, yields have increased by 1-2% overall, driven by stronger rental demand recovery post-pandemic and continued price appreciation in prime areas. Tourist rentals experienced significant disruption during 2020-2021 but have since recovered to exceed pre-pandemic performance levels.
The most significant yield improvements have occurred in growth districts and renovated historic properties, while luxury segments have seen more modest gains due to supply increases in high-end developments.
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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.
What are the forecasts for rents and yields in the next one, five, and ten years?
Fes property market outlook remains positive across all time horizons, supported by tourism growth and infrastructure development.
Over the next year through 2026, rental yields are expected to remain steady with moderate rent appreciation of 5-8% annually. This growth will be driven by continued tourism recovery and expanding business activities in the city.
The five-year outlook through 2030 projects continued growth driven by major infrastructure projects, tourism expansion, and industrial development. Property values are expected to appreciate significantly while rental demand strengthens across all segments, potentially maintaining or slightly improving current yield levels.
The ten-year forecast through 2035 identifies strategic districts like Agdal, the Medina, and new developments as likely outperformers. Restored, professionally managed short-term rental properties are projected to deliver the strongest long-term returns, though regulatory changes and tourism fluctuations present potential risks to these projections.
What are the smartest choices for the best balance of yield and stability?
The optimal property investments in Fes combine strong rental yields with manageable risk and good appreciation potential.
1. **Restored Medina riads for managed short-term rentals** - Offer highest yields (8-10%) with strong tourist demand, though requiring active management2. **Mid-range modern apartments in growth districts** - Provide stable 6-8% yields with consistent student and professional demand3. **New apartment developments in Agdal and New City** - Balance good yields (5-7%) with strong appreciation potential and lower maintenance4. **Mixed-use properties with commercial components** - Generate steady rental income while benefiting from capital appreciation5. **Student-focused properties near universities** - Ensure consistent occupancy with moderate yields and predictable cash flowHow does the rental yield in Fes compare with other major Moroccan cities and international markets?
Fes ranks among Morocco's most attractive property investment destinations when comparing rental yields and entry costs.
Within Morocco, Fes yields of 5-10% compare favorably to Casablanca (7-8%), Marrakech (7-8%), Tangier (8%), and significantly exceed Agadir (4-5%). Fes's advantage stems from lower entry prices combined with strong tourist demand and diverse rental markets.
Internationally, Fes outperforms many established markets including Dubai (6.8-8.5%), Istanbul (5.5-7.2%), Athens (4.5-6%), and Valencia (5.2-7.4%). This performance advantage is particularly pronounced for entry-level and restored properties targeting tourist rentals.
The combination of attractive yields, manageable acquisition costs, and strong rental demand positions Fes as one of the most compelling property investment opportunities in the MENA region for yield-focused investors.
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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.
Fes represents one of Morocco's most attractive property investment opportunities, combining competitive rental yields of 5-10% with manageable entry costs and diverse rental markets.
Success in the Fes property market requires careful property selection, understanding local rental dynamics, and professional management to maximize returns while minimizing vacancy and maintenance costs.
Sources
- BeFez Estate - Price House Fez
- Sands of Wealth - Fes Property
- Kensington Morocco - Real Estate Investment Guide Fes
- TouchStay - Mid Term Rental Guide
- SIPA - Property Yield Calculation
- Global Property Guide - Morocco Rental Yields
- Savory and Partners - Best Countries Real Estate Investment
- Global Property Guide - Morocco Price History
- Sands of Wealth - Morocco Price Forecasts
- Global Property Guide - Global Rental Yields