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Marrakech offers some of Morocco's highest rental yields, ranging from 6% to 14% depending on property type and location. The city attracts both short-term tourists and long-term international residents, creating diverse investment opportunities across luxury villas, modern apartments, and traditional riads.
Short-term rentals through platforms like Airbnb typically generate 8-10% yields, while long-term rentals provide more stable returns of 5-7% in central areas. Prime neighborhoods like Palmeraie and Route de l'Ourika are emerging as top investment destinations with yields reaching up to 14%.
If you want to go deeper, you can check our pack of documents related to the real estate market in Marrakech, based on reliable facts and data, not opinions or rumors.
Marrakech rental yields vary significantly by property type, with luxury villas achieving 8-12% yields and modern apartments generating 6-9% returns.
Central districts like Gueliz and emerging areas like Route de l'Ourika offer the best combination of yield potential and capital appreciation prospects.
| Property Type | Average Yield | Best Locations | Investment Range (MAD) |
|---|---|---|---|
| Luxury Villas | 8-12% | Palmeraie, Route de l'Ourika | 4,000,000 - 8,000,000 |
| Modern Apartments | 6-9% | Gueliz, Hivernage | 800,000 - 1,500,000 |
| Traditional Riads | 6-8% | Medina | 900,000 - 2,000,000 |
| Suburban Villas | 7-10% | Agdal, Targa | 1,500,000 - 3,000,000 |
| Investment Properties | Up to 14% | Route de l'Ourika corridor | 600,000 - 1,200,000 |
| Airbnb Properties | 8-10% | All prime areas | Varies by type |
What are the current rental yields in Marrakech by property type?
As of September 2025, rental yields in Marrakech vary significantly depending on the property type you choose to invest in.
Luxury villas in prime areas like Palmeraie generate the highest yields at 8-12%, making them attractive for investors seeking premium returns. These properties benefit from strong demand from high-net-worth individuals and international tourists willing to pay premium rents for exclusive accommodations.
Modern apartments in central districts like Gueliz and Hivernage deliver solid yields of 6-9%, appealing to both short-term visitors and long-term international residents. Traditional riads in the historic Medina offer yields of 6-8%, attracting tourists seeking authentic Moroccan experiences and expatriates wanting cultural immersion.
Suburban villas in developing areas like Agdal and Targa provide yields of 7-10%, representing a middle ground between luxury and affordability. The highest potential returns come from investment properties in emerging corridors like Route de l'Ourika, where yields can reach up to 14% due to lower purchase prices and growing rental demand.
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How do rental yields differ across Marrakech's main neighborhoods?
Neighborhood selection significantly impacts your rental yield potential in Marrakech's diverse property market.
Palmeraie stands out as the luxury yield leader, offering not only high rental returns but also capital appreciation of up to 15% annually. This exclusive area attracts wealthy international clients seeking premium villa accommodations with resort-style amenities and privacy.
Gueliz and Hivernage maintain steady demand from international tenants, particularly business travelers and expatriate professionals. These central districts show annual price growth of 3-5% while providing consistent rental income due to their modern infrastructure and proximity to restaurants, shopping, and business centers.
Agdal, Route de l'Ourika, and Targa represent the emerging high-yield opportunities with potential returns of 10-14%. These areas benefit from rising infrastructure development, improved connectivity, and more affordable entry prices that allow for higher percentage returns as rental rates increase with area development.
The Medina offers moderate yields but attracts tourists seeking authentic experiences, while newer developments in suburban areas provide growing potential as Marrakech expands and infrastructure improves.
What yields can I expect based on property size and surface area?
Property size directly correlates with rental yield potential in Marrakech's residential market.
| Property Size | Average Purchase Price | Monthly Rent | Gross Yield |
|---|---|---|---|
| 1-bedroom apartment | $129,090 | $645 | 6.00% |
| 2-bedroom apartment | $150,605 | $860 | 6.85% |
| 3-bedroom apartment | $169,431 | $1,183 | 8.38% |
| Small villa (150-200m²) | $200,000-300,000 | $1,200-1,800 | 7.2-7.8% |
| Large villa (300m²+) | $400,000-600,000 | $2,000-3,500 | 8.0-10.5% |
| Luxury villa (500m²+) | $600,000+ | $3,500+ | 9.0-12.0% |
Larger apartments consistently achieve higher yields due to increased rental rates that grow faster than purchase price premiums. Three-bedroom units particularly benefit from family demand and corporate housing needs.
Villas show increasing yield potential with size, as luxury properties command premium rents while often purchased at relatively better value per square meter compared to smaller units.
What are the total purchase costs including fees and taxes?
Understanding total acquisition costs is crucial for calculating accurate net rental yields in Marrakech.
Transaction costs typically add 8-12% to your base purchase price, regardless of property type or financing method. This includes notary fees of 1-1.5%, registration fees of approximately 4%, and agency fees ranging from 2-5% depending on the property and agent.
Luxury villas in Palmeraie with prices of MAD 4-8 million face the same percentage costs, meaning additional expenses of MAD 320,000-960,000. Modern apartments in Gueliz with budgets of MAD 800,000-1.5 million require extra costs of MAD 64,000-180,000.
Traditional riads in the Medina typically cost MAD 900,000-2 million plus MAD 72,000-240,000 in transaction fees. Investment properties in emerging areas like Route de l'Ourika, with base prices of MAD 600,000-1.2 million, require additional costs of MAD 48,000-144,000.
These costs remain consistent whether you finance with a mortgage or purchase with cash, though mortgage-financed purchases may face slightly higher registration fees based on the credit amount.
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What ongoing expenses should I budget for annually?
Annual property expenses significantly impact your net rental yield and require careful budgeting.
Property taxes include housing tax of approximately 10% of annual rental value plus municipal tax of 8%. For a luxury villa generating MAD 400,000 in annual rent, expect around MAD 72,000 yearly in taxes alone.
Maintenance costs typically run 1.5-2.5% of property value annually for villas, with apartments requiring less due to shared building maintenance. A MAD 3 million villa needs MAD 45,000-75,000 yearly for upkeep, repairs, and improvements.
Property management fees range from 7-12% of rental income for short-term Airbnb properties, covering guest communication, cleaning, and booking management. Long-term rental management costs less, typically 5-8% of monthly rent.
Additional expenses include utilities (if included in rent), insurance, and potential vacancy periods. Budget approximately 15-25% of gross rental income for total ongoing expenses to calculate realistic net yields.
How does mortgage financing affect my net rental yield?
Financing through a mortgage typically reduces your net rental yield by 1-2% compared to cash purchases.
Moroccan banks typically require 20-30% down payment for property purchases, meaning you need MAD 600,000-1.2 million upfront for a MAD 3 million villa. The same 8-12% transaction costs apply regardless of financing method.
Mortgage interest rates and monthly repayments create ongoing costs that reduce net cash flow from rental income. Additionally, opportunity cost considerations apply since your down payment capital could generate returns elsewhere.
However, financing allows you to leverage your capital across multiple properties or preserve cash for other investments. Some investors prefer mortgage financing to maintain liquidity and diversification, accepting slightly lower yields for increased portfolio flexibility.
Notary fees may increase slightly for financed purchases due to additional registration requirements related to the mortgage agreement and lender documentation.
What's the difference between short-term and long-term rental returns?
Short-term and long-term rental strategies offer distinctly different yield profiles and management requirements.
Airbnb and short-term rentals typically generate 8-10% yields with occupancy rates around 63% citywide. Top-performing properties in prime locations can achieve monthly revenues exceeding $4,543 (MAD 45,000), particularly luxury villas and premium apartments in tourist-favored areas.
Short-term rentals require approximately 230+ nights per year to maximize returns and can double the monthly cash flow compared to traditional long-term leases. However, they demand active management, guest services, and higher maintenance due to constant turnover.
Long-term rentals provide more stable yields of 5-7% in central locations, appealing to investors preferring predictable income with minimal management. These rentals attract professional expatriates, local executives, and international residents seeking stable housing.
Consider your investment goals: short-term rentals maximize income potential but require hands-on management, while long-term rentals offer stability and easier management with lower overall returns.
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What are typical monthly rents for different property types?
Monthly rental rates vary significantly across Marrakech's diverse property market segments.
| Property Type | Monthly Rent Range | Primary Location |
|---|---|---|
| Modern Apartment | 8,000-15,000 MAD | Gueliz/Hivernage |
| Luxury Villa | 20,000-35,000 MAD | Palmeraie/Route de l'Ourika |
| Traditional Riad | 10,000-18,000 MAD | Medina |
| Suburban Villa | 12,000-22,000 MAD | Targa/Agdal |
| Premium Airbnb | 45,000+ MAD | All prime areas |
Modern apartments in central business districts command premium rents due to proximity to international businesses, restaurants, and shopping centers. Luxury villas achieve the highest monthly rates, particularly those offering privacy, pools, and resort-style amenities.
Traditional riads attract tourists and expatriates seeking authentic Moroccan architecture and cultural immersion. Suburban villas provide middle-market options for families and long-term residents prioritizing space and value.
The highest-performing Airbnb properties can exceed MAD 45,000 monthly during peak tourism seasons, though this requires exceptional properties in prime locations with professional management.
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 tenant profiles typically rent properties in Marrakech?
Understanding tenant demographics helps optimize your property and marketing strategy for maximum yields.
Short-term rental markets primarily attract tourists, affluent travelers, and digital nomads seeking unique Moroccan experiences. These guests prefer properties with authentic design, modern amenities, and prime locations near attractions, restaurants, and cultural sites.
Long-term residential tenants include professional expatriates working for international companies, local executives, and wealthy Moroccan families relocating to Marrakech. These tenants prioritize modern amenities, reliable utilities, security, and proximity to international schools or business centers.
Luxury rental segments attract high-net-worth individuals, international retirees, and business travelers requiring premium accommodations. These tenants are less price-sensitive but demand exceptional service, privacy, and high-end amenities.
Seasonal variations affect tenant mix, with winter months attracting European retirees escaping cold climates, while summer brings diverse international tourists and business visitors attending conferences or exploring Morocco's cultural offerings.
What are the current vacancy rates across different areas?
Vacancy rates vary significantly between short-term and long-term rental markets across Marrakech.
Short-term Airbnb properties citywide show median occupancy rates of approximately 63%, meaning vacancy rates around 37%. However, this varies dramatically by location, property quality, and management effectiveness, with prime properties achieving much higher occupancy.
Long-term apartment rentals in prime areas typically experience vacancy rates below 10%, while suburban areas may see 12-15% vacancy depending on location and property condition. Central districts like Gueliz and Hivernage maintain lower vacancy due to consistent demand from expatriates and business professionals.
Luxury segments generally experience lower vacancy rates due to limited supply and high demand from international clients seeking premium accommodations. Tourism-focused areas benefit from Marrakech's growing popularity as a luxury destination.
Seasonal fluctuations affect vacancy rates, with peak tourist seasons reducing short-term rental vacancy while summer months may see temporary increases in long-term rental availability as some expatriates travel or relocate.
Which properties and areas offer the smartest investment opportunities today?
Several property types and locations stand out as particularly attractive investment opportunities in September 2025.
Central zones like Gueliz and Hivernage offer the best short-term rental demand and attract premium international tenants for long-term leases. These areas benefit from established infrastructure, dining options, and business centers that maintain consistent demand.
Route de l'Ourika, Agdal, and Targa present the highest yield potential with appreciation prospects due to affordable entry prices and growing development. These emerging corridors offer opportunities to acquire properties with yields above 10% while benefiting from future infrastructure improvements.
Palmeraie remains the luxury segment leader, particularly attractive for high-net-worth investors seeking exclusivity and capital appreciation. Properties here command premium rents and show strong resale value due to limited supply and prestigious reputation.
Smart investment choices include villas and investment properties in peripheral growth corridors where yields exceed 10% and development trends suggest future appreciation. These areas offer the best combination of current returns and growth potential.
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How have rental yields and prices changed over recent years?
Marrakech's rental market has shown strong growth momentum over both recent and longer-term periods.
Over the past year, villa prices have surged 11% while apartment prices increased 2-3%, creating differentiated market segments. Rental rates have risen 7-11% in the hottest areas, driven by increased tourism and growing expatriate populations.
Looking back five years, property values have increased 6-8% annually while rental yields have remained stable or slightly improved. This indicates healthy market fundamentals with both capital appreciation and income generation.
The next 1-5 years forecast continued steady yields with price growth driven by the 2030 World Cup and major infrastructure investments. Government initiatives and tourism development projects are expected to maintain strong rental demand.
Over the next 10 years, expect potential yield compression if property prices continue outpacing rental growth. However, strong tourism fundamentals and foreign investment suggest sustainable yields in central and emerging zones, particularly for well-located properties.
How do Marrakech yields compare with other major cities?
Marrakech consistently ranks among the highest-yielding real estate markets in Morocco and internationally.
| City | Average Gross Yield (2025) | Market Characteristics |
|---|---|---|
| Marrakech | 6.95-7.08% | Highest yields in Morocco |
| Tangier | 6.79-8.00% | Strong tourism, shipping |
| Casablanca | 6.75-7.00% | Larger, more corporate market |
| Rabat | 6.68% | Political capital |
| Agadir | 5.98% | Lower yields |
| International (Paris, Lisbon) | 2-6% | Developed markets |
Marrakech maintains Morocco's highest rental yields, benefiting from strong tourism, cultural attractions, and growing international resident populations. The city outperforms most international destinations where yields typically range from 2-6%.
Compared to European cities like Paris or Lisbon, Marrakech offers significantly superior yields while providing exposure to a growing emerging market. This makes it attractive for yield-focused investors seeking higher returns than available in developed markets.
Within Morocco, Marrakech competes closely with Tangier for top yields but offers greater cultural appeal and established luxury tourism infrastructure that supports premium rental rates and consistent demand.
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.
Marrakech presents compelling rental yield opportunities ranging from 6% to 14%, with the highest returns available in emerging neighborhoods and luxury properties. Short-term rentals consistently outperform long-term leases, while central districts provide the most stable demand.
Success in Marrakech's rental market requires careful consideration of property type, location, and management strategy, with emerging areas like Route de l'Ourika offering the best combination of current yields and future appreciation potential.
Sources
- Marrakech Real Estate Market Trends
- Marrakech Property Investment Guide
- Best Areas to Invest in Marrakech
- Global Property Guide - Morocco Rental Yields
- Moving to Morocco - Property Purchase Guide
- Knight Frank Morocco Buying Guide
- Morocco Property Notary Fees
- Property Tax in Morocco
- Airbnb ROI Marrakech Report
- Real Estate Investment Marrakech