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Everything you need to know before buying real estate is included in our Morocco Property Pack
Morocco's rental market offers attractive yields averaging 6.72% nationwide as of September 2025, making it a compelling destination for property investors.
The Moroccan property market presents diverse opportunities across major cities, with Tangier leading yields at 8.00% and Agadir offering the lowest at 4.82%. Understanding these regional variations and property-specific factors is crucial for making informed investment decisions in this growing North African market.
If you want to go deeper, you can check our pack of documents related to the real estate market in Morocco, based on reliable facts and data, not opinions or rumors.
Morocco's rental yields vary significantly by city, with Tangier offering the highest returns at 8.00% and smaller apartments consistently outperforming larger properties.
Short-term rentals can provide higher income but require active management, while long-term rentals offer stability with occupancy rates above 90% in prime areas.
| City | Average Yield | Best Property Type | Monthly Rent (2BR) |
|---|---|---|---|
| Tangier | 8.00% | 1-2BR Apartments | $612 |
| Marrakesh | 7.08% | 3BR Apartments | $1,183 |
| Casablanca | 7.00% | 1BR Apartments | $1,088 |
| Rabat | 6.68% | 2-3BR Apartments | $1,361 |
| Agadir | 4.82% | 1BR Apartments | $850 |
What are the current rental yields across Morocco's main cities and regions?
Morocco's rental market delivers a national average gross rental yield of 6.72% as of September 2025, representing a slight decline from 7.75% recorded in Q3 2024.
Tangier leads the market with the highest yields at 8.00%, making it particularly attractive for investors seeking maximum returns. Casablanca follows closely at 7.00%, while Marrakesh offers 7.08% average yields. Rabat provides moderate returns at 6.68%, and Agadir shows the lowest yields at 4.82%, primarily due to higher property prices in this coastal resort city.
Regional variations reflect local market dynamics, with northern cities like Tangier benefiting from lower purchase prices relative to rental income. Coastal tourist destinations command premium property prices but may not always translate to proportionally higher rental rates, affecting overall yield calculations.
The yield variations across cities also depend on infrastructure development, proximity to business centers, and tourist appeal. Cities with emerging development projects and improved connectivity tend to show stronger rental demand and yield potential.
It's something we develop in our Morocco property pack.
How do rental yields vary by property type like apartments, villas, and commercial units?
Apartments consistently deliver the highest rental yields in Morocco, typically ranging from 6% to 9%, with smaller units performing particularly well in city-center locations.
One-bedroom apartments across major cities show impressive yields: Tangier leads at 8.24%, followed by Casablanca at 8.18%. Two-bedroom units also perform strongly, with Tangier reaching 9.28% and Rabat achieving 7.14%. Three-bedroom apartments maintain solid performance, particularly in Marrakesh at 8.38%.
Villas generally produce lower gross yields, typically ranging from 5% to 8%, though high-end properties in certain Marrakesh segments can reach 7% to 12%. The lower yields reflect higher purchase prices that don't always correlate with proportionally higher rental rates. However, luxury villas in prime locations like Palmeraie in Marrakesh can command premium rents.
Commercial units show variable performance depending on location and lease terms, though specific 2025 data for commercial yields isn't comprehensively available. Investment properties in emerging areas, particularly suburban developments near Marrakesh, can achieve yields of 10% to 14%.
The apartment market benefits from higher liquidity and broader tenant demand, making them more suitable for investors prioritizing consistent returns and easier property management.
What role does property size play in determining rental yields?
Smaller properties consistently outperform larger ones in terms of rental yield percentages across Morocco's major cities.
One and two-bedroom properties typically achieve yields 1-2% higher than three and four-bedroom units. This pattern occurs because purchase prices increase faster than rental rates as property size grows. For example, in Casablanca, one-bedroom apartments yield 8.18% compared to 5.61% for four-bedroom units.
The size advantage is most pronounced in urban centers where demand for smaller, more affordable rental units remains consistently high. Young professionals, students, and small families drive this demand, creating a stable tenant pool for compact apartments.
Larger properties face additional challenges including higher maintenance costs, longer vacancy periods between tenants, and a smaller pool of qualified renters who can afford premium rents. Four-bedroom properties across all major cities show the lowest yields, typically 1-3% below their smaller counterparts.
Investment strategy should consider that while larger properties may appreciate more in absolute terms, smaller units provide better cash flow returns and easier tenant placement, making them ideal for investors prioritizing immediate rental income.
How do total purchase costs impact actual net rental yields?
Total purchase costs significantly reduce actual net yields, typically lowering returns by 1.5% to 2% compared to gross yield calculations.
Gross yields published in market reports don't include crucial expenses such as transaction fees, estate agent commissions, notary costs, property registration fees, and immediate renovation expenses. These additional costs can add 8% to 15% to the base property price, depending on the transaction complexity and property condition.
Higher-priced properties, particularly in the luxury villa market, experience more significant yield compression unless rental rates scale proportionally. A villa purchased for MAD 3 million with MAD 300,000 in additional costs faces a higher investment base that must generate sufficient rental income to maintain attractive returns.
Foreign buyers may encounter additional costs including currency exchange fees, international transfer charges, and specialized legal services for non-resident purchases. These factors particularly affect net yields for international investors who must factor in all acquisition expenses.
Accurate investment analysis requires calculating net yields based on total investment rather than just the advertised property price, ensuring realistic return expectations and proper comparison between different investment opportunities.
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What ongoing costs should property owners factor into their yield calculations?
Property owners must account for several ongoing expenses that directly impact net rental yields and overall investment returns.
Property taxes in Morocco vary by city and region but remain relatively low compared to European standards, typically representing 0.5% to 1% of property value annually. Maintenance and repair costs generally range from 1% to 2% of property value per year for apartments, while villas may require higher maintenance budgets, especially properties with gardens, pools, or premium finishes.
Mortgage expenses significantly affect net yields for leveraged investors. Current Moroccan mortgage rates fluctuate between 4% and 6%, varying by lender and the borrower's resident status. Non-resident buyers often face slightly higher rates and different lending criteria.
Insurance costs are mandatory for mortgaged properties and relatively affordable in Morocco. Property management fees range from 5% to 10% of annual rental income, particularly relevant for short-term rental management or properties owned by non-resident investors requiring local management services.
Additional expenses include utility setup fees, periodic deep cleaning, legal compliance costs, and potential vacancy periods between tenants. These combined ongoing costs typically reduce gross yields by 2% to 3%, making net yield calculations essential for accurate investment analysis.
How do short-term and long-term rental strategies compare for profitability?
Short-term rentals generally generate higher gross income but require significantly more management effort and operational complexity compared to long-term rentals.
| Rental Strategy | Average Occupancy | Monthly Income (Marrakesh) | Management Effort | Yield Premium |
|---|---|---|---|---|
| Short-term (Airbnb) | 64% | $1,481 | High | +1-2% |
| Long-term Rental | 90-95% | $1,183 | Low | Base rate |
| Mixed Strategy | 75-80% | $1,330 | Medium | +0.5-1% |
Marrakesh Airbnb properties average MAD 14,987 ($1,481) monthly with 64% occupancy rates and an average daily rate of MAD 799 ($79) over 234 nights annually. However, this higher income comes with increased operational costs, including frequent cleaning, guest communication, marketing, and property maintenance.
Long-term rentals offer greater stability with occupancy rates typically above 90% in prime areas, predictable monthly income, and minimal management requirements. While gross yields may be 1-2% lower than optimized short-term rentals, net yields often converge due to lower operational costs and reduced vacancy risks.
Current Moroccan regulations remain relatively lenient for short-term rentals in major cities, though this regulatory environment could change as the market matures. Successful short-term rental operations require properties in tourist-attractive locations with quality furnishings and professional management.
The choice between strategies depends on investor preferences for active versus passive management, risk tolerance, and available time for property operations.
What are specific examples of monthly rental income across key areas?
Monthly rental income varies significantly across Morocco's major cities, reflecting local market conditions and property demand patterns.
Rabat commands the highest average rents with two-bedroom apartments generating $1,361 monthly, reflecting the city's status as the political capital with steady demand from government workers and diplomatic staff. Marrakesh three-bedroom properties average $1,183 monthly, benefiting from strong tourist and expat demand.
Casablanca two-bedroom apartments produce $1,088 monthly rental income, supported by the city's position as Morocco's economic hub with consistent corporate and professional tenant demand. The city's large population and business activity maintain stable rental markets across different property types.
Tangier offers more affordable rents with two-bedroom units averaging $612 monthly, though this lower absolute income translates to higher yields due to significantly lower property purchase prices. This creates attractive investment opportunities for yield-focused investors.
Agadir rental rates vary by season and property type, with coastal properties commanding premium rents during peak tourist months. The city's focus on tourism creates seasonal rental variations that investors must factor into annual income projections.
It's something we develop in our Morocco property pack.
What do typical renter profiles look like for different rental strategies?
Morocco's rental market serves diverse tenant populations with distinct preferences and requirements for short-term versus long-term accommodations.
Short-term rental tenants primarily consist of international tourists, business travelers, and digital nomads seeking flexible accommodation options. These guests typically have higher budgets, expect well-furnished properties with modern amenities, and prefer central locations near attractions, restaurants, and transportation hubs. Tourist demand peaks during Morocco's high season from October to April.
Long-term rental tenants include local professionals, families, students in university towns, and a growing segment of international expats relocating to Morocco. This tenant base values stability, cost-effectiveness, and practical features over luxury finishes. They often prioritize reliable utilities, parking availability, and proximity to schools or workplaces.
The expat rental market is expanding, particularly in prime areas of Marrakesh, Casablanca, and Rabat, driven by remote work trends and Morocco's appeal as a North African base. These tenants typically seek medium to long-term leases with international standard amenities and service levels.
Student tenants concentrate around major universities, creating consistent demand for affordable smaller properties. Professional tenants in economic centers like Casablanca drive demand for quality apartments with modern conveniences and reliable infrastructure.
Understanding tenant profiles helps investors select appropriate properties and locations, optimize rental strategies, and set competitive pricing for their target market segment.
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 current vacancy rates by city and property type?
Vacancy rates across Morocco's major cities remain relatively low, particularly for well-located properties in prime rental areas.
Long-term apartment rentals in prime areas of Casablanca, Rabat, and Marrakesh typically experience vacancy rates between 5% and 10%, reflecting strong underlying demand from residents and working professionals. Properties in secondary locations or those requiring significant maintenance may experience higher vacancy rates.
Short-term rental occupancy in Marrakesh averages 64%, as measured by Airbnb data, though this varies significantly by season, property quality, and management effectiveness. Well-managed properties in prime tourist areas can achieve 70-80% occupancy, while poorly located or maintained properties may struggle to reach 50%.
The luxury villa market experiences slightly higher vacancy rates, particularly outside peak tourist seasons, as this segment serves a smaller tenant pool requiring higher budgets and specific amenities. Seasonal variations affect coastal properties more significantly than urban centers.
Student housing near universities maintains low vacancy rates during academic years but may experience higher vacancies during summer months. Properties adapted for this market often pre-lease for the following academic year, reducing vacancy risks.
Overall vacancy rates remain manageable for well-positioned properties, though investors should factor 5-10% vacancy allowance into their yield calculations for realistic return projections.
Which property types and areas offer the smartest investment choices today?
The smartest investment opportunities in Morocco's current market focus on high-yielding smaller apartments in growth cities and emerging suburban developments near major infrastructure projects.
Tangier apartments represent excellent value with yields reaching 8% for one and two-bedroom units, benefiting from the city's strategic location, port development, and lower entry costs. The city's growing importance as a logistics hub supports strong rental demand from working professionals.
Emerging Marrakesh suburbs, particularly areas along growth corridors planned for the 2030 World Cup, offer investment properties with yields reaching 10-14%. These locations benefit from infrastructure development while maintaining lower purchase prices than established areas.
Central apartments in Casablanca and Rabat provide reliable yields around 7% with strong liquidity and consistent tenant demand from the cities' large professional populations. These markets offer stability and growth potential as Morocco's economic centers continue expanding.
Short-term rental properties in established tourist areas of Marrakesh, Tangier, and Agadir can provide superior returns for investors willing to manage active rental operations. Success requires properties in prime locations with quality finishes and professional management systems.
Smaller apartments (1-2 bedrooms) across all major cities consistently outperform larger properties in yield terms while offering better liquidity and easier tenant placement, making them ideal for cash flow-focused investors.
How have rental yields and property prices evolved recently?
Morocco's rental market has experienced notable changes over the past five years, with yields declining slightly while property prices have risen consistently across major cities.
Rental yields decreased from 7.75% in Q3 2024 to 6.72% in Q2 2025, reflecting property price appreciation outpacing rental rate increases. This trend mirrors global real estate markets where asset prices have risen faster than rental income in many locations.
Property prices have increased 3-7% annually across major cities, with the luxury market leading appreciation at 11-15% per year, particularly in Marrakesh. This price growth reflects increasing domestic and international interest in Moroccan real estate, improved infrastructure, and economic development.
Rental rates have grown more moderately at 2-3% annually for standard apartments, as local income levels and affordability constraints limit rapid rent increases. This creates a gap between price and rental growth that has compressed yields.
Tangier and suburban Marrakesh areas now outperform central Casablanca and Rabat in yield terms due to lower capital values allowing rental returns to remain attractive. These areas represent emerging opportunities as established city centers become more expensive.
The trend suggests that while Morocco remains attractive for property investment, investors should focus on yield-optimized locations and property types rather than assuming all areas will deliver historically high returns.
What are the forecasts for Morocco's rental market over the next decade?
Morocco's rental market outlook appears positive over the next decade, supported by major infrastructure projects, demographic trends, and international events driving demand growth.
Short-term forecasts for 2025-2026 indicate stable to slightly rising yields, with tourism-driven areas expected to outperform due to Morocco's growing appeal as a North African destination. The tourism sector recovery and increased international flight connectivity support rental demand in key cities.
Medium-term projections for 2026-2030 anticipate significant growth driven by infrastructure projects and the 2030 World Cup co-hosting opportunity. These developments, particularly in Marrakesh and Casablanca, are expected to boost both rental demand and property appreciation, especially in areas benefiting from new transportation and venue construction.
Long-term forecasts through 2035 emphasize urban migration as a key driver, with an expected 8-10% increase in market size and rental demand as rural populations move to economic centers. This demographic shift supports sustained rental market growth across major cities.
Compared to similar international markets, Morocco offers competitive rental yields, particularly versus Southern European destinations like Spain and Portugal. Lower ownership costs, manageable tax burdens, and cheaper purchase prices per square meter enhance Morocco's attractiveness for international investors.
The combination of infrastructure development, demographic trends, and international recognition positions Morocco's rental market for continued growth, though investors should remain selective about locations and property types to optimize returns.
It's something we develop in our Morocco property pack.
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.
Morocco's rental market offers attractive opportunities for informed investors, with yields averaging 6.72% nationally and strong growth potential driven by infrastructure development and demographic trends.
Success requires careful selection of property types and locations, with smaller apartments in growth cities and emerging suburban areas providing the best combination of yields and appreciation potential.
Sources
- Global Property Guide - Morocco Rental Yields
- Global Property Guide - Morocco Price History
- Global Property Guide - Morocco Rent Yields
- Sands of Wealth - Morocco Real Estate Market
- Sands of Wealth - Marrakech Real Estate Market Trends
- Airbtics - Annual Airbnb Revenue in Marrakech Morocco
- Statista - Morocco Real Estate Outlook
- Sands of Wealth - Morocco Real Estate Forecasts