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Fes offers one of Morocco's most compelling property markets, with renovated Medina riads delivering 6-8% rental yields and modern apartments providing stable long-term returns at prices 30-40% below Marrakech.
The city's property market combines affordability with strong fundamentals, featuring distinct investment opportunities across neighborhoods from the historic Medina to developing areas like Agdal and Hay Saada, where 2-bedroom apartments average $60,000-$100,000.
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.
Fes property market offers strong investment opportunities with renovated Medina riads achieving 6-8% yields and prices significantly lower than other Moroccan cities.
Modern apartments in developing neighborhoods provide stable 4-6% returns, while the market shows consistent 4-6% annual price growth with favorable 5-8% projections for the next 3-5 years.
| Property Type | Price Range | Rental Yield | Best For |
|---|---|---|---|
| Renovated Medina Riads | $300,000-$1,000,000+ | 6-8% | Short-term rentals, tourism |
| Modern 2BR Apartments | $50,000-$100,000 | 4-6% | Long-term rentals, families |
| Unrenovated Medina Riads | $100,000-$300,000 | Variable after renovation | Value-add investors |
| Modern Villas | $200,000-$500,000 | 3-5% | Luxury rentals, expats |
| Small Apartments (1BR) | $20,000-$50,000 | 4-6% | Students, young professionals |
| Suburban Properties | $200,000-$500,000 | 3-5% | Development opportunities |
| Furnished Units | 15-20% premium | Higher yields | Short-term rentals |
What are the current average property prices in Fes by neighborhood and property type?
Fes property prices vary significantly depending on location and property type, with the city-wide average sitting at approximately $900 per square meter as of September 2025.
In the historic Medina, unrenovated riads start around $100,000, while fully renovated luxury riads command between $300,000 to over $1,000,000 depending on their historical significance, size, and location within the ancient city walls.
Modern apartments in developing neighborhoods like Agdal and Hay Saada offer more accessible entry points, with studio and 1-bedroom units priced between $20,000-$50,000, while 2-bedroom apartments typically range from $50,000-$100,000.
Modern villas, particularly those in newer developments on the city outskirts, are priced from $200,000 to $500,000, attracting buyers seeking contemporary amenities and larger living spaces.
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How do rental yields compare across different areas of the city?
Rental yields in Fes vary considerably by property type and location, with the Medina offering the strongest returns for investors.
Renovated Medina riads deliver the highest yields at 6-8% annually, driven by strong tourism demand and successful Airbnb operations throughout the year.
Modern apartments provide more stable but lower yields of 4-6%, particularly attractive for long-term rental strategies targeting local families, students, and professionals in well-connected districts.
Villas generate the lowest yields at 3-5% but attract premium tenants, including affluent expats and holiday renters willing to pay higher rents for luxury amenities and space.
Furnished apartments achieve 15-20% rental premiums over unfurnished units in prime locations, making them particularly attractive for short-term rental strategies.
What are the short-term market trends in Fes over the past 12 to 24 months?
The Fes property market has shown consistent recovery and growth since 2023, following the COVID-19 market dip.
Property prices have risen steadily at 4-6% per year over the past 12-24 months, with renovated riads and strategically located apartments outperforming other property segments.
Tourism recovery has driven particularly strong demand for short-term rental properties, while increasing expat interest has boosted the residential market across multiple neighborhoods.
Cash buyers and foreign investors have become increasingly active in the market, contributing to improved liquidity and faster transaction times for well-positioned properties.
The market has shown resilience with high occupancy rates for rental properties and reduced time-on-market for sales, indicating healthy underlying demand fundamentals.
What are the medium-term projections for the next 3 to 5 years?
Medium-term projections for Fes property market show strong growth potential driven by infrastructure development and government incentives.
Property values are forecasted to grow by 5-8% annually over the next 3-5 years, supported by ongoing infrastructure projects and improved transport connectivity throughout the city.
Areas closest to historic sites and benefiting from transport improvements are predicted to lead market appreciation, with the Medina and well-connected neighborhoods like Agdal expected to see the strongest gains.
Increased mixed-use development and eco-friendly renovation projects are expected to further boost demand, particularly among younger buyers and international investors seeking sustainable properties.
The rental market is projected to remain robust, with tourism growth and expanding student populations supporting both short-term and long-term rental demand across various property types.
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What is the long-term outlook for property values and demand in Fes?
The long-term outlook for Fes property market remains positive, supported by the city's significant price discount compared to other major Moroccan cities.
Fes properties remain 30-40% cheaper than equivalent properties in Marrakech or Casablanca, creating substantial room for price appreciation as the market matures.
Continuous tourism growth, favorable visa and residency regulations for foreign buyers, and limited high-quality housing stock are expected to maintain upward pressure on both demand and property values.
The city's UNESCO World Heritage status and ongoing restoration projects ensure long-term cultural and economic significance, supporting sustained international interest in property investment.
However, investors should consider potential risks including overreliance on tourism, possible regulatory changes affecting foreign ownership, and occasional delays in infrastructure project delivery that could impact growth timelines.
Which areas of Fes are best positioned for capital appreciation?
Several key areas in Fes show exceptional potential for capital appreciation based on current development trends and market fundamentals.
The historic Medina remains the top choice for investors seeking capital appreciation, particularly for classic riads that benefit from tourism demand and limited supply of authentic historical properties.
Agdal and Hay Saada neighborhoods are prime targets for ongoing development projects, making them ideal for investors seeking new apartments with strong long-term appreciation potential.
Suburban and periurban zones offer new villa developments and land opportunities at lower entry points, providing potential for significant appreciation as the city expands.
Properties near planned infrastructure improvements, including transport links and commercial developments, are positioned for above-average appreciation as these projects enhance neighborhood connectivity and desirability.
Which types of properties are performing best for investors?
Different property types in Fes cater to distinct investor strategies, with renovated riads leading performance metrics.
Renovated riads consistently deliver the best returns for investors focused on short-term and holiday rentals, combining high yields with strong capital appreciation potential.
Two-bedroom apartments provide excellent balance for investors, appealing to both families and long-term tenants while delivering steady rental income and broad resale appeal.
Furnished apartments achieve premium rental rates, generating 15-20% higher returns than unfurnished equivalents in top locations, particularly beneficial for active rental management strategies.
Modern villas, while offering lower yields, attract high-quality tenants and provide diversification for investors building larger portfolios across different property segments.
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What is the typical budget range required to buy in each neighborhood?
| Neighborhood | 1BR Apartment | 2BR Apartment | Unrenovated Riad | Renovated Riad | Villa |
|---|---|---|---|---|---|
| Medina | $30,000-$80,000 | $60,000-$100,000 | $100,000-$300,000 | $300,000-$1,000,000+ | N/A |
| Agdal, Hay Saada | $30,000-$50,000 | $60,000-$100,000 | N/A | N/A | $200,000-$350,000 |
| Outskirts/Suburbs | $20,000-$40,000 | $45,000-$80,000 | N/A | N/A | $250,000-$500,000 |
| Modern Developments | $25,000-$45,000 | $55,000-$90,000 | N/A | N/A | $300,000-$500,000 |
| University Areas | $20,000-$35,000 | $40,000-$70,000 | N/A | N/A | $180,000-$300,000 |
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 main risks and barriers to entry in the Fes property market?
Several key challenges face property buyers in Fes, with administrative complexity being the primary concern for foreign investors.
Complex property title verification processes, particularly for older Medina properties, can create delays and require careful legal due diligence to ensure clear ownership rights.
Administrative hurdles include limited foreign mortgage access and lengthy permitting processes for renovations, especially in the protected Medina area where restoration must comply with UNESCO guidelines.
Liquidity concerns affect certain property types, with large riads and peripheral villas potentially taking longer to resell due to limited buyer pools for higher-priced unique properties.
Tourism dependency creates potential income volatility for short-term rental investments, as political instability or economic downturns could significantly impact visitor arrivals and rental demand.
If you want to live in Fes, where should you buy and what kind of property makes sense?
Living in Fes offers distinct lifestyle choices depending on your preferences for authenticity versus modern convenience.
Modern apartments in Agdal or Hay Saada provide the best balance of convenience, amenities, and future resale potential for most residents, with good access to schools, shopping, and transportation.
Medina riads offer authentic Moroccan living experiences with unique architectural character, ideal for those seeking cultural immersion and don't mind traditional layouts and maintenance requirements.
Two-bedroom apartments priced between $60,000-$100,000 represent the sweet spot for most buyers, offering adequate living space, good resale liquidity, and rental potential if circumstances change.
Consider proximity to essential services, internet connectivity quality, and parking availability when choosing your neighborhood, as these factors significantly impact daily living comfort and property values.
If you want to rent out, what areas and property types deliver the best returns?
Rental investment success in Fes depends on matching property type and location with your target tenant market and management preferences.
Historic Medina properties, particularly renovated riads, generate the highest yields through short-term rentals and Airbnb, capitalizing on tourist demand for authentic Moroccan experiences.
Well-located apartments in Agdal and Hay Saada excel for long-term rentals, attracting local families, students, and professionals who value modern amenities and good neighborhood connections.
Furnished properties command 15-20% rental premiums across all neighborhoods, making furniture investment worthwhile for active landlords willing to manage higher-maintenance rental strategies.
Consider your management capacity when choosing rental strategies, as short-term rentals require active management while long-term rentals in modern developments offer more passive income approaches.
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If you want to resell later, what is the smartest positioning today in terms of location, size, and budget?
Strategic positioning for future resale requires balancing current affordability with anticipated market demand and development trends.
Properties near tourist sites, transport infrastructure, or planned development projects offer the best positioning for future appreciation and buyer interest.
Smaller riads and apartments in premium locations ($50,000-$200,000 range) provide high liquidity and attract the broadest buyer demographic, from first-time buyers to investors.
Two to three-bedroom properties with modern renovations and amenities suitable for both local families and international buyers maximize future market appeal and resale speed.
Focus on properties with clear titles, completed renovations, and features that appeal across multiple buyer segments rather than highly specialized properties that limit your eventual buyer pool.
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 presents a compelling property investment opportunity with renovated Medina riads delivering exceptional 6-8% yields while modern apartments provide stable returns at significantly lower prices than other major Moroccan cities.
The market's consistent 4-6% annual growth, favorable medium-term projections of 5-8% appreciation, and diverse property options from $20,000 apartments to $1,000,000+ luxury riads make it accessible to various investor profiles and budgets.