Authored by the expert who managed and guided the team behind the Morocco Property Pack
Yes, the analysis of Marrakech's property market is included in our pack
Marrakech's property market is experiencing significant momentum as of September 2025, with strong foreign investment and tourism recovery driving demand across all sectors.
Property prices have stabilized after a dramatic 20% surge in 2024, while rental yields remain attractive at 8-14% for short-term rentals and 6-8% for long-term investments. The luxury market continues to outperform, with neighborhoods like Palmeraie and Hivernage seeing consistent premium pricing and rapid sales.
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.
Marrakech property prices have stabilized at premium levels following 2024's surge, with apartments averaging 13,000 MAD/m² and luxury villas reaching 35,000 MAD/m².
Short-term rental yields of 8-14% significantly outperform long-term rentals at 6-8%, while foreign buyers dominate 55% of luxury transactions.
| Property Type | Average Price | Rental Yield | Market Outlook |
|---|---|---|---|
| Central Apartments | 13,000 MAD/m² | 7% (long-term) | Stable growth 3-7% |
| Luxury Villas | 20,000-35,000 MAD/m² | 8-12% (Airbnb) | Strong demand continues |
| Traditional Riads | 1.5-5 million MAD | 10-14% (Airbnb) | Tourism-driven growth |
| Emerging Areas | 8,000-12,000 MAD/m² | 8-12% (Airbnb) | High growth potential |
| Premium Locations | 16,000+ MAD/m² | 6-8% (long-term) | Sustained premium pricing |
What are the current average property prices in Marrakech for apartments, villas, and riads?
As of September 2025, Marrakech property prices reflect the city's status as Morocco's premier tourist destination and luxury real estate hub.
Central Marrakech apartments currently average 13,000 MAD per square meter, equivalent to approximately €1,200 per square meter. Premium neighborhoods like Gueliz and Hivernage command higher prices, reaching up to 16,000 MAD per square meter due to their modern amenities and central locations.
Luxury villas represent the high-end segment, with prices ranging from 20,000 to 35,000 MAD per square meter. The most exclusive areas like Palmeraie and Hivernage regularly exceed 25,000 MAD per square meter, with complete villa purchases typically ranging from 8 million to 40+ million MAD depending on size, amenities, and specific location.
Traditional riads in the historic Medina offer a unique investment opportunity, with prices generally falling between 1.5 million and 5 million MAD for complete properties. Exceptional riads with superior restoration or prime Medina locations can exceed this range significantly.
It's something we develop in our Morocco property pack.
How have property prices in Marrakech changed over the past 3 to 5 years?
Marrakech experienced a dramatic property price surge in 2024, with values increasing over 20% as tourism rebounded post-pandemic and international investment resumed.
The luxury segment and prime neighborhoods like Palmeraie and Hivernage saw even stronger gains, with annual increases of 5-15% throughout 2024 and early 2025. This growth was driven by limited supply in premium locations and renewed confidence from foreign buyers.
As of 2025, the market has stabilized with more moderate growth rates of 3-7% annually for mainstream properties. This represents a healthy correction from the explosive growth of 2024 while maintaining upward momentum.
Looking at the broader 3-5 year trend, Marrakech has outperformed most other Moroccan cities due to its tourism appeal, infrastructure development, and international recognition as an investment destination.
What are the rental yields right now for short-term rentals like Airbnb compared to long-term rentals?
Short-term rentals significantly outperform long-term rentals in Marrakech's current market environment.
Airbnb and vacation rental properties achieve gross yields of 8-14% in high-tourism areas like Route de l'Ourika and Agdal. Central luxury villas typically yield 8-12%, with traditional Medina riads often reaching the higher end of this range due to their unique appeal to tourists.
Occupancy rates for short-term rentals remain strong, averaging 64-76% citywide and often reaching 75-85% for well-positioned Medina riads. Annual Airbnb revenue averages approximately 179,000 MAD, though this varies significantly by property type and location.
Long-term rental yields are more conservative but stable, typically generating 6-8% gross returns depending on unit size and location. Modern apartments in central districts generally achieve around 7% yields with less management intensity than short-term rentals.
Which neighborhoods in Marrakech are seeing the highest demand and fastest price growth?
Palmeraie leads Marrakech's luxury market with consistently high demand from both local and international buyers seeking premium villa properties with resort-style amenities.
| Neighborhood | Market Segment | Annual Growth Rate | Key Characteristics |
|---|---|---|---|
| Palmeraie | Ultra-luxury villas | 10-15% | Golf courses, exclusive resorts |
| Hivernage | Luxury apartments/hotels | 8-12% | Modern district, upscale dining |
| Gueliz | Premium apartments | 7-10% | Commercial center, modern amenities |
| Agdal | Emerging residential | 8-12% | New infrastructure, growing popularity |
| Route de l'Ourika | Vacation rentals | 10-14% | High Airbnb yields, scenic location |
| Targa | Mid-market residential | 6-9% | Affordable growth area |
Don't lose money on your property in Marrakech
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How many new housing developments or construction projects are planned in Marrakech for the next few years?
Marrakech is experiencing a construction boom as of September 2025, with dozens of new projects in various stages of development.
The focus is primarily on upscale gated communities and luxury villa complexes, particularly near golf courses and in suburban areas within 15-20 minutes of the city center. Several high-end mixed-use developments are currently under construction to meet growing demand from both residents and investors.
While exact project numbers vary, the construction pipeline is substantial, with new inventory concentrated in the luxury and upper-middle market segments. This development activity is designed to keep pace with urbanization trends and sustained tourism growth.
The government's infrastructure investments are supporting this expansion, with improved transport links and urban planning facilitating new residential developments across emerging neighborhoods.
What are the average time-on-market figures for properties currently listed in Marrakech?
Marrakech's property market is moving exceptionally fast as of September 2025, reflecting strong buyer demand and competitive conditions.
Properties in prime locations are selling with an average time on market of just 33 days, indicating a seller's market with limited inventory relative to demand. This rapid turnover is particularly evident in luxury neighborhoods and well-positioned rental properties.
The quick sales cycle reflects both local buyer confidence and sustained foreign investment interest, creating competitive bidding situations for desirable properties.
Properties priced appropriately for their location and condition are often receiving multiple offers within the first month of listing, especially in established neighborhoods with proven rental track records.
How many foreign buyers are active in Marrakech, and what percentage of total transactions do they represent?
Foreign investment dominates Marrakech's luxury property segment, with international buyers representing approximately 55% of high-end transactions as of September 2025.
European buyers, particularly from France, Spain, and the UK, lead foreign investment activity, drawn by Marrakech's accessibility, tourism potential, and relatively stable political environment. Many are seeking vacation homes that can generate rental income when not in personal use.
Across all market segments, foreign buyers represent an estimated 30-40% of total property transactions citywide, with their influence particularly strong in luxury villas, restored riads, and properties suitable for short-term rentals.
This foreign buyer activity has been a key driver of price appreciation, especially in neighborhoods that appeal to international lifestyle and investment preferences.
What are the current mortgage interest rates and financing conditions available locally?
As of September 2025, mortgage financing in Morocco offers several options for property buyers, though conditions vary significantly between residents and non-residents.
Local mortgage rates for non-residents typically range from 4.5% to 6.5% for fixed-term loans, with financing generally easier to obtain for residents or buyers working with established local banks. The Moroccan government supports homebuying through the Damane Assakane guarantee fund, which improves access to financing.
Loan-to-value ratios are often capped at 70% for foreign buyers, requiring substantial down payments but providing banks with security in a growing market. Local banks may require proof of income, bank statements, and other financial documentation from international buyers.
The financing environment has improved compared to previous years, with banks becoming more comfortable with foreign investment and streamlined processes for qualified buyers.
It's something we develop in our Morocco property pack.
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.
How have tourism numbers in Marrakech evolved, and what's the projected impact on rental demand?
Tourism in Marrakech has rebounded strongly, with visitor numbers returning to pre-COVID levels and continuing to grow as of September 2025.
Airbnb bookings increased 7% year-over-year, while overall occupancy rates for short-term rentals have stabilized at 74-76% citywide. Well-positioned properties in the Medina and luxury areas often achieve 75-85% occupancy rates throughout the year.
The tourism recovery is supported by major infrastructure investments and Morocco's preparations for hosting the 2030 World Cup, which is expected to drive sustained international interest and visitor growth through the decade.
Rental demand projections remain optimistic, with tourism infrastructure improvements and global events creating a positive outlook for short-term rental income and property appreciation driven by tourism activity.
What are the local government's policies or incentives that could influence property investment?
The Moroccan government maintains an investor-friendly environment with several policies supporting property investment as of September 2025.
Heavy public investment in infrastructure, including transport networks, tourism facilities, and urban development projects, continues to enhance property values across Marrakech. The Damane Assakane fund provides mortgage guarantees that facilitate home purchasing, particularly benefiting first-time buyers.
No major new property taxes have been announced, and the regulatory environment remains stable for foreign investors. Ongoing legal reforms are improving transparency and reducing bureaucratic hurdles for international property buyers.
The government's commitment to tourism development and urban planning creates a supportive backdrop for real estate investment, with infrastructure spending likely to continue benefiting property values in the coming years.
How does the supply of luxury properties compare to mid-range or affordable housing in Marrakech?
Marrakech's property development is heavily skewed toward luxury and upper-middle market segments, creating supply imbalances across different price points.
- Luxury Oversupply: New construction focuses predominantly on high-end villas, premium apartments, and mixed-use complexes targeting affluent buyers and investors
- Mid-Market Gap: Limited new supply in the 8,000-15,000 MAD/m² range, creating opportunities for investors targeting local professionals and growing middle class
- Affordable Housing Deficit: Significant shortage of affordable housing options despite government and private sector efforts to address urban demand
- Investment Concentration: Most new developments target foreign buyers and luxury lifestyle preferences rather than local housing needs
- Market Imbalance: The supply-demand mismatch in affordable housing creates upward price pressure across all segments
What do experts forecast for property prices and rental demand in Marrakech over the next 12 to 24 months?
Real estate experts project continued moderate price growth of 3-7% annually for the Marrakech market through 2026 and 2027.
Established and tourist-friendly zones are expected to lead this growth, supported by sustained tourism demand, ongoing international investment, and continued infrastructure expansion. Luxury and central districts are likely to retain strong pricing power due to limited supply and consistent demand from both buyers and renters.
Rental demand projections remain highly positive, with short-term rental yields expected to maintain their current 8-14% range thanks to tourism growth and Morocco's preparations for major international events including the 2030 World Cup.
Suburban and emerging areas may experience increased development activity, with potential for some oversupply in specific segments, while central and luxury markets are expected to remain supply-constrained and continue appreciating.
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.
Marrakech's property market outlook for 2025-2026 remains highly favorable for investors seeking both capital appreciation and rental income opportunities.
The combination of stabilized pricing after 2024's surge, strong tourism fundamentals, government infrastructure support, and attractive rental yields positions Marrakech as one of North Africa's most compelling real estate investment destinations.
Sources
- Sands of Wealth - Marrakech Price Forecasts
- Les Villas de Myriam - Villa Prices in Marrakech
- Sands of Wealth - Marrakech Real Estate Market Trends
- Airbtics - Annual Airbnb Revenue in Marrakech
- Global Property Guide - Morocco Rental Yields
- Moroccan Dream - Marrakech Investment Neighborhoods
- Sands of Wealth - Morocco Buy Property
- Marrakech Realty - New Developments
- Barnes Marrakech - Riad Properties
- Sands of Wealth - Marrakech Property Analysis