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As we reach mid-2025, Marrakech's property market shows clear upward momentum with prices rising 3-7% annually. The Red City continues to attract both domestic and international investors, driven by strong tourism recovery, infrastructure development, and favorable government policies that support real estate investment.
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Marrakech property prices are rising steadily in 2025, with annual increases of 3-7% for mainstream properties and 5-8% for luxury and short-term rental properties.
Tourism recovery, foreign investment surge (up 55% from 2024), and infrastructure projects drive this growth, making Marrakech one of Morocco's top-performing real estate markets.
| Property Type | Average Price 2025 | Annual Growth | Rental Yield |
|---|---|---|---|
| City Center Apartments | 13,000 MAD/m² (€1,200/m²) | 3-5% | 6-8% |
| Luxury Villas | 20,700 MAD/m² (€1,900/m²) | 5-8% | 7-9% |
| Traditional Riads | 1.5-5 million MAD | 5-8% | 8-10% |
| Furnished Apartments | 15,000-18,000 MAD/m² | 5-7% | 7-9% |
| Suburban Properties | 9,000-11,000 MAD/m² | 3-5% | 5-7% |
| Eco-friendly Developments | 16,000-22,000 MAD/m² | 6-9% | 6-8% |
| Palmeraie Luxury Homes | 25,000-35,000 MAD/m² | 6-10% | 8-11% |
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.
What are the current average property prices in Marrakech as of June 2025?
Property prices in Marrakech have reached new levels as we approach mid-2025, reflecting the city's growing appeal to investors and residents alike.
For apartments in the city center, the average price stands at approximately 13,000 MAD per square meter (around €1,200/m²), representing a modest increase from 12,955 MAD/m² recorded in 2024. This growth demonstrates the steady demand for urban residential properties in prime locations.
Luxury villas command significantly higher prices, averaging 20,700 MAD per square meter (approximately €1,900/m²), up from 20,400 MAD/m² the previous year. These properties, particularly those in prestigious areas like the Palmeraie and Hivernage, continue to attract high-net-worth individuals seeking exclusivity and premium amenities.
Traditional riads in the Medina show the widest price variation, ranging from 1.5 million MAD for properties requiring renovation to over 5 million MAD for fully restored, prime-location riads. The most exceptional properties in sought-after areas of the Medina can exceed this range significantly.
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How much have property prices increased in Marrakech over the past year?
Marrakech experienced remarkable property price growth throughout 2024, setting records that continue to influence the market in 2025.
The Red City witnessed an unprecedented surge in property prices during 2024, with increases exceeding 20% year-on-year in many segments. This exceptional growth was primarily driven by robust local and international demand, particularly for luxury properties and those suited for tourism-related investments.
As we move through 2025, price growth has moderated but remains consistently positive. Mainstream residential properties are currently experiencing annual growth rates of approximately 3-7%, while luxury properties and furnished apartments targeting the short-term rental market continue to see stronger appreciation at 5-8% annually.
This growth significantly outpaces Morocco's national average of 3-7% annual property price increases, highlighting Marrakech's position as one of the country's most dynamic real estate markets. The sustained demand from both domestic buyers and foreign investors continues to support these positive trends.
Which neighborhoods in Marrakech are experiencing the fastest price growth in 2025?
Several key districts in Marrakech are leading the charge in property price appreciation, each driven by unique factors that enhance their investment appeal.
Targa has emerged as a rapidly transforming neighborhood, benefiting from improved accessibility and new residential projects that make it increasingly attractive to buyers seeking modern amenities in a developing area. The district's strategic location and ongoing infrastructure improvements position it for continued strong growth.
Agdal continues to attract both residential and commercial investment, with new housing complexes and business developments driving demand and consequently pushing up property values. The area's mix of modern convenience and established infrastructure makes it particularly appealing to young professionals and families.
Sidi Ghanem has gained prominence as an up-and-coming district, popular among creative businesses and increasingly attracting residential developments. Its evolving character and growing reputation contribute to steady price appreciation.
The luxury zones of GH2 and SD1 have witnessed particularly dramatic price increases, with land values nearly doubling in some cases over the past five years. These premium areas continue to command the highest prices and strongest growth rates, especially for high-end villas and exclusive residences.
What types of properties are seeing the biggest price increases in Marrakech?
Certain property categories in Marrakech are experiencing particularly strong price appreciation, reflecting changing buyer preferences and market dynamics.
Luxury villas lead the market in terms of price appreciation, especially those located in prestigious areas such as the Palmeraie, Hivernage, and new luxury developments. These properties benefit from sustained demand from high-net-worth individuals seeking exclusive residences with premium amenities and privacy.
Renovated riads in the Medina represent another high-growth segment, driven by strong demand from foreign buyers and investors targeting the short-term rental market. These traditional properties offer unique cultural appeal and excellent rental yield potential, particularly when professionally restored and well-located.
Furnished apartments designed for short-term rentals are experiencing robust growth, with annual appreciation rates of 5-8%. The recovery and expansion of Marrakech's tourism sector continue to drive demand for these properties, making them attractive investments for those seeking rental income.
Eco-friendly and sustainable properties command premium pricing due to government incentives supporting green construction and growing consumer preference for environmentally conscious living. These developments often feature modern amenities while incorporating sustainable design elements that appeal to contemporary buyers.
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What are the latest government policies affecting Marrakech's property market?
The Moroccan government has implemented several significant policy changes that directly impact Marrakech's real estate landscape in 2025.
The 2025 Finance Law introduced a simplified tax system for real estate income, providing greater clarity for property investors and reducing administrative complexity. Additionally, the law reduced marginal income tax rates, effectively enhancing purchasing power for potential property buyers.
Transaction transparency has been significantly improved through the digitization of notarial deeds and stricter regulation of real estate transactions, particularly for luxury villa purchases. These measures help protect buyers and create a more secure investment environment.
The government has introduced attractive tax incentives, including reduced registration fees and tax exemptions for investments in mid-range housing projects and eco-friendly developments. These policies encourage both domestic and international investment while promoting sustainable construction practices.
The Direct Housing Assistance Programme, launched in 2024, continues to improve financing access for property buyers, while the national program to build 200,000 homes includes over 4,700 units specifically allocated to Marrakech, helping address housing demand.
How are rental yields performing in Marrakech's current market?
Marrakech's rental market demonstrates strong performance across multiple segments, offering attractive returns for property investors.
| Property Type | Location | Gross Yield | Market Characteristics |
|---|---|---|---|
| Short-term Rentals | Medina & Gueliz | 6-8% | High tourist demand, seasonal variations |
| Long-term Apartments | City Center | 5-7% | Stable demand from professionals |
| Luxury Properties | Palmeraie | 7-9% | Premium segment, exclusive clientele |
| Traditional Riads | Historic Medina | 8-10% | Tourism-driven, cultural appeal |
| Suburban Homes | Outer Districts | 4-6% | Growing but competitive market |
| Furnished Studios | Gueliz & Hivernage | 6-8% | Popular with young professionals |
| Eco-developments | Various Locations | 5-7% | Emerging segment with growth potential |
Short-term rental yields in prime locations like the Medina and Gueliz range from 6% to 8%, benefiting from Marrakech's position as a top tourist destination. The city welcomed over 3 million visitors annually, creating consistent demand for quality vacation rentals.
European investors particularly benefit from favorable exchange rates and higher rental yields compared to their home markets, with returns ranging from 7.29% to 9.18% significantly outperforming many European cities.
What role do foreign investors play in Marrakech's price increases?
Foreign investment represents a crucial driver of Marrakech's property market growth, with international buyers significantly influencing price trends across multiple segments.
Foreign investment in Moroccan real estate surged by over 55% from 2024 to 2025, with Marrakech being a primary beneficiary of this increased international interest. European and GCC investors particularly favor the city for its cultural appeal, favorable investment climate, and attractive lifestyle opportunities.
Foreign buyers currently own approximately 10% of all luxury properties in Morocco, with heavy concentration in Marrakech's premium neighborhoods. Their focus on luxury villas, renovated riads, and tourism-oriented properties directly contributes to price appreciation in these segments.
The impact extends beyond immediate purchases, as foreign demand drives development of new luxury projects and renovation of traditional properties to international standards. This creates a ripple effect that benefits the broader market and local construction industry.
Government incentives, including exemptions from rental income tax and urban tax for new constructions, make Marrakech particularly attractive to international investors seeking both lifestyle and investment returns.
How does Marrakech compare to other major Moroccan cities in terms of property prices?
Marrakech maintains a competitive position relative to other major Moroccan cities, offering unique value propositions for different types of buyers and investors.
| City | Apartments (MAD/m²) | Villas (MAD/m²) | Investment Appeal |
|---|---|---|---|
| Marrakech | 13,000 | 20,700 | Tourism, luxury, cultural heritage |
| Casablanca | 14,500 | 20,300 | Business hub, economic center |
| Rabat | 14,500 | 20,300 | Government, diplomatic quarter |
| Tangier | 9,000-13,000 | 15,000-18,000 | Port city, European proximity |
| Agadir | 11,000-14,000 | 18,000-22,000 | Beach destination, tourism |
Marrakech remains more affordable than Casablanca and Rabat for apartment purchases, while offering comparable villa prices. However, the luxury segments in Marrakech often command premium pricing due to the city's unique cultural appeal and tourism potential.
The city's competitive advantage lies in its combination of affordable entry points for investors and strong rental yield potential, particularly in tourism-related properties. This positioning makes it attractive for both first-time investors and experienced property portfolios.
We made this infographic to show you how property prices in Morocco compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What are the property price forecasts for Marrakech through 2030?
Expert predictions for Marrakech's property market through 2030 indicate sustained growth driven by multiple structural factors.
Annual price increases of 3-7% are expected to continue through the rest of the decade, supported by ongoing urbanization trends, infrastructure development, and Morocco's preparation for hosting the 2030 FIFA World Cup. These events are projected to generate significant additional investment and boost property values.
Luxury and eco-friendly properties are expected to outperform the broader market, with annual appreciation potentially reaching 5-8% due to sustained foreign interest and government incentives supporting sustainable development practices.
Major infrastructure projects, including the planned Marrakech-Agadir high-speed rail line, are expected to create new investment opportunities and drive price appreciation in properties along the corridor. Historical precedent from the Tangier-Casablanca line suggests properties within 5 kilometers of stations could see 10-15% premiums.
Urbanization is projected to reach nearly 68% by 2030, further increasing demand for city properties. The combination of demographic trends, international events, and infrastructure modernization creates a compelling foundation for continued market growth.
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How has tourism recovery affected Marrakech property prices in 2025?
Tourism recovery has played a pivotal role in driving Marrakech's property market performance throughout 2025, creating robust demand across multiple property segments.
Marrakech welcomed over 3 million visitors in 2024, with numbers continuing to grow in 2025 as international travel fully normalized. This recovery has directly benefited short-term rental properties, driving up both occupancy rates and rental yields for well-positioned investments.
The city's ranking as the 6th most popular travel destination on Airbnb for 2024 demonstrates its strong appeal to international tourists seeking authentic accommodation experiences. This popularity translates directly into higher demand for renovated riads and furnished apartments in prime locations.
Marrakech-Menara Airport recorded 18 million passengers in 2023, with continued growth in 2025 supporting sustained tourism demand. The expansion of flight routes and increased airline capacity make the city more accessible to international visitors, benefiting property owners targeting the vacation rental market.
Morocco's national goal to reach 26 million tourists by 2030, with particular focus on luxury tourism, bodes well for continued appreciation in premium properties and those catering to high-end visitors seeking unique experiences.
What impact do infrastructure projects have on Marrakech property values?
Major infrastructure developments continue to create significant positive impacts on Marrakech's property values, with several projects enhancing connectivity and urban development.
The planned Marrakech-Agadir high-speed rail line represents a transformative infrastructure project that will dramatically improve regional connectivity. Properties along the planned corridor are already experiencing appreciation as investors anticipate reduced travel times and enhanced accessibility.
Ongoing urban development projects, including road improvements and public transport enhancements, are making previously less accessible neighborhoods more attractive to buyers. Areas like Targa and outer districts benefit particularly from these infrastructure investments.
The government's 120 billion MAD recovery program, while primarily focused on the High Atlas region affected by the 2023 earthquake, has indirect positive effects on Marrakech through improved regional infrastructure and economic stability.
Preparation for the 2030 FIFA World Cup includes significant infrastructure upgrades that will benefit the broader Marrakech metropolitan area. These improvements in transportation, telecommunications, and urban facilities contribute to the city's long-term investment appeal and property value growth.
Are there any risks or challenges facing Marrakech's property market growth?
While Marrakech's property market shows strong fundamentals, several factors could potentially impact future growth trajectories.
Global economic uncertainties could affect foreign investment flows, which represent a crucial component of Marrakech's property demand. A significant downturn in European or GCC economies might reduce international buyer activity, particularly in the luxury segments.
Rising construction costs due to global inflation and supply chain disruptions continue to pressure new development costs, potentially limiting new supply or increasing final sale prices beyond some buyers' reach.
Oversupply in suburban areas could create temporary pressure on rental yields, as new housing developments sometimes exceed immediate local demand. However, this primarily affects outer areas rather than prime central locations.
Regulatory changes or modifications to foreign ownership laws, while unlikely given Morocco's pro-investment stance, could impact international buyer confidence. Similarly, changes to tax incentives currently supporting eco-friendly and tourism-oriented developments might affect specific market segments.
Despite these potential challenges, the fundamental drivers supporting Marrakech's property market remain strong, and most experts view these risks as manageable within the context of overall positive market trends.
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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.
Based on comprehensive market analysis and current trends, property prices in Marrakech are definitely going up in 2025. The combination of sustained tourism recovery, foreign investment growth of over 55%, government policy support, and major infrastructure projects creates a compelling environment for continued price appreciation.
With annual growth rates of 3-7% for mainstream properties and 5-8% for luxury and tourism-oriented investments, Marrakech offers one of Morocco's most dynamic real estate markets. The answer is clear: Yes, property prices are going up significantly in Marrakech.
Sources
- Sands of Wealth - Marrakech Price Forecasts
- Global Property Guide - Morocco Residential Real Estate Market Analysis
- Sands of Wealth - Marrakech Real Estate Market Statistics
- Sands of Wealth - Marrakech Real Estate Trends 2025
- Sands of Wealth - Marrakech Real Estate Forecasts
- Sands of Wealth - Morocco Property Price Forecasts
- Global Property Guide - Morocco Rental Yields
- Sands of Wealth - Morocco Real Estate Forecasts 2025