Authored by the expert who managed and guided the team behind the Morocco Property Pack
Everything you need to know before buying real estate is included in our Morocco Property Pack
Morocco's property market is experiencing steady growth with moderate price increases across major cities.
Property prices in Morocco are rising between 3% and 7% annually as of 2025, driven by strong urban demand, foreign investment, and government incentives, though supply constraints and affordability challenges persist in key markets like Casablanca, Rabat, and Marrakech.
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 residential property market shows steady growth with prices rising 3-7% annually in 2025, supported by strong urban demand and foreign investment.
Key cities like Casablanca, Rabat, and Marrakech face supply deficits despite government housing initiatives, while rental yields improve due to tourism recovery and urbanization trends.
| Market Aspect | Current Status (2025) | Outlook |
|---|---|---|
| Price Growth | 3-7% annually across major cities | Continued moderate growth expected |
| Supply Deficit | 340,000 units shortage nationwide | Gradual improvement with new projects |
| Mortgage Rates | 4.5-6% for residential properties | Stable with government support programs |
| Foreign Investment | 55% increase year-over-year | Strong continued interest expected |
| Rental Yields | Improving in major cities | Tourism and urbanization driving growth |
| Construction Costs | Rising due to inflation | Pressure on development projects |
| GDP Growth | 4-4.8% projected for 2025 | Supporting property market fundamentals |
How are property prices trending in Morocco right now?
Property prices in Morocco are experiencing steady upward momentum as of September 2025.
Annual growth rates range between 3% and 7% across major residential markets, with the strongest performance in luxury and tourism-focused properties. Casablanca apartment prices average 13,900 MAD per square meter, while luxury villas maintain stable pricing at around 20,500 MAD per square meter.
Marrakech shows similar trends with apartments averaging approximately 13,000 MAD per square meter, reflecting a modest increase from the previous year. Rabat demonstrates the most pronounced growth in upscale neighborhoods, with Souissi commanding around 21,000 MAD per square meter and Agdal reaching 17,000 MAD per square meter.
The price growth is primarily driven by urbanization trends, with Morocco's urban population now exceeding 65%, creating sustained demand pressure on residential properties. Foreign investment has surged 55% year-over-year, further supporting price appreciation across prime markets.
It's something we develop in our Morocco property pack.
What's the current demand for residential properties in major cities?
Demand for residential properties remains exceptionally strong across Morocco's major urban centers.
Casablanca, Rabat, and Marrakech are experiencing robust buyer interest driven by urbanization trends and an influx of young professionals seeking employment opportunities in these economic hubs. The middle class expansion is creating sustained demand for quality residential properties.
The government estimates a current housing shortage of 340,000 units nationwide, with the deficit most pronounced in prime urban locations. This supply-demand imbalance is supporting price stability and growth across residential segments.
Tourism recovery is adding another layer of demand, particularly in Marrakech and coastal areas, where properties suitable for short-term rentals are highly sought after. The upcoming 2030 FIFA World Cup and infrastructure improvements are generating additional investor interest.
How much new housing supply is coming onto the market?
New housing supply is increasing but remains insufficient to meet growing demand over the next 12 to 24 months.
The government and private sector are accelerating residential development projects through various initiatives, including the Damane Assakane financing program and direct subsidies for affordable housing developers. However, the scale of new supply still falls short of rising demand projections.
Construction timelines are facing some delays due to rising material costs and global supply chain effects, which is slowing the delivery of planned residential units. Recent natural disasters have also impacted some development schedules and exacerbated the existing supply deficit.
Despite these challenges, major urban areas are seeing increased construction activity, particularly around Casablanca and Rabat, where infrastructure investments are supporting new residential developments.
What are current mortgage rates and financing accessibility?
Mortgage rates for residential properties currently range between 4.5% and 6% for fixed-rate loans as of September 2025.
The government provides financing assistance through the Damane Assakane fund, particularly targeting buyers earning less than $400 per month. This program includes loan guarantees and reduced down payment requirements to improve accessibility for first-time buyers and lower-income groups.
Both local residents and foreign buyers can obtain financing, with banks offering competitive packages for qualified applicants. New incentives and government-backed guarantees are making homeownership more accessible across different income segments.
The financing environment remains supportive for property purchases, with government policies actively encouraging homeownership through subsidized interest rates and relaxed lending criteria for qualifying buyers.
Don't lose money on your property in Morocco
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 are rental yields performing across different cities?
Rental yields are improving across Morocco's major cities, driven by both long-term tenant demand and the flourishing short-term rental market.
| City | Property Type | Rental Yield Range |
|---|---|---|
| Casablanca | Apartments | 4.5-6.2% |
| Marrakech | Tourist Properties | 6.0-8.5% |
| Rabat | Residential Units | 4.0-5.8% |
| Tangier | Mixed Properties | 5.2-7.1% |
| Agadir | Vacation Rentals | 6.5-9.0% |
| Fez | Traditional Properties | 3.8-5.5% |
| Meknes | Residential Units | 4.2-6.0% |
Tourism recovery is significantly boosting rental performance, especially in Marrakech, Agadir, and Tangier, where short-term accommodations command premium rates. The growing digital nomad trend and increased business travel are supporting sustained rental demand across major urban centers.
What government incentives and restrictions affect real estate investors?
The Moroccan government has implemented several incentive programs to support property investment and homeownership.
Tax incentives are available for first-time buyers and low-income families, including reduced registration fees and property transfer taxes. The Damane Assakane program provides loan guarantees and subsidized interest rates for qualifying residential purchases.
Investment subsidies are offered to developers focusing on affordable housing projects, though some price caps and project requirements apply to maintain market balance. Direct financial support is available for social housing initiatives and urban development projects.
Foreign investment faces minimal restrictions for residential properties, though certain land types, particularly agricultural land, remain restricted for non-Moroccan buyers. Due diligence requirements have been enhanced to ensure legal compliance and transparency in property transactions.
How are foreign buyers participating in Morocco's property market?
Foreign buyer participation has increased dramatically, with investment up 55% year-over-year as of September 2025.
Most nationalities can freely purchase and hold residential property in Morocco, with straightforward legal processes for foreign ownership. The main restrictions apply to agricultural land and certain strategic locations, but standard residential and commercial properties are accessible to international buyers.
Liquidity for property resales typically requires 3 to 9 months, depending on location and property type. No major new restrictive regulations have been implemented in 2025, maintaining Morocco's appeal as a foreign investment destination.
European investors, particularly from France and Spain, represent the largest segment of foreign buyers, followed by investors from Gulf countries and North America seeking diversified real estate portfolios in stable MENA markets.
It's something we develop in our Morocco property pack.
What's happening with construction costs and inflation?
Construction costs are rising modestly due to inflation and global supply chain effects, impacting both project timelines and development affordability.
Material costs have increased approximately 8-12% over the past year, with steel, cement, and imported fixtures showing the steepest price rises. Labor costs remain relatively stable but are experiencing gradual upward pressure as the construction sector expands.
Inflation is putting additional pressure on property prices, with developers passing increased costs to buyers through higher selling prices. This trend is particularly affecting new development projects and luxury property segments.
Some developers are adjusting project scopes or extending completion timelines to manage rising costs, though major infrastructure investments continue to support overall market confidence and development activity.
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 is tourism affecting short-term rental demand?
Tourism recovery is significantly boosting demand for short-term rentals across Morocco's key destinations.
Marrakech, Agadir, and Tangier are experiencing strong vacation rental performance, with occupancy rates recovering to pre-pandemic levels and rental rates increasing 15-25% compared to 2024. The upcoming 2030 FIFA World Cup is generating additional investor interest in tourism-focused properties.
High-speed rail expansions and improved transport links are making previously less accessible areas more attractive for short-term rental investments. Coastal properties in Agadir and Tangier are particularly benefiting from increased international tourism.
Digital platform integration and professional property management services are making short-term rentals more profitable and accessible to individual investors, contributing to overall rental yield improvements in tourist-heavy areas.
What's the employment and income growth outlook?
Morocco's economic outlook shows GDP growth projected at 4-4.8% for 2025, supporting employment expansion.
Employment growth is moderate but steady, particularly in urban centers where service industries, technology, and manufacturing sectors are creating new job opportunities. Young professionals are increasingly moving to cities like Casablanca and Rabat for career advancement.
However, housing affordability remains challenging due to relatively static wage growth compared to property price increases. Morocco ranks among the higher housing cost burden countries in Africa, with price-to-income ratios creating accessibility concerns for middle-income buyers.
Government initiatives are addressing this gap through subsidized housing programs and improved financing options, but the fundamental affordability challenge persists in prime urban markets.
How are infrastructure projects shaping property values?
Major infrastructure investments are significantly enhancing property values, particularly around Casablanca and Tangier.
High-speed rail projects are improving connectivity between major cities, making previously peripheral areas more attractive for residential development. New transport links are reducing commute times and expanding the effective radius of major employment centers.
Urban expansion projects include new retail developments, improved road networks, and modern utility infrastructure, all contributing to property value appreciation in surrounding areas. The government's commitment to infrastructure modernization is boosting long-term investor confidence.
These developments are particularly benefiting residential properties within commuting distance of improved transport hubs, with some areas experiencing accelerated price growth due to enhanced accessibility and convenience.
It's something we develop in our Morocco property pack.
What are analysts forecasting for the next 2-3 years?
Market analysts and local real estate agencies forecast continued stability with moderate growth for Morocco's property market through 2027.
Price appreciation is expected to continue at 3-6% annually, supported by ongoing urbanization trends, middle-class expansion, and sustained infrastructure investment. Tourism demand is projected to strengthen further, particularly benefiting coastal and historic city markets.
Morocco is consistently ranked among the more stable and attractive property markets in the MENA region, with political stability and economic reforms supporting long-term investment confidence. The 2030 FIFA World Cup preparations are expected to provide additional market momentum.
However, analysts caution that supply constraints and affordability challenges may moderate growth rates if not addressed through expanded government housing programs and increased private sector development activity.
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 residential property market in 2025 presents a balanced investment opportunity with steady price growth, strong urban demand, and supportive government policies.
While supply constraints and affordability challenges persist, the market benefits from robust tourism recovery, infrastructure development, and increased foreign investment, positioning it as one of the more stable property markets in the MENA region.
Sources
- Sands of Wealth - Morocco Price Forecasts
- Statista - Residential Real Estate in Morocco
- Agenz - Real Estate Market Perspectives 2025 Morocco
- Agenz - Morocco Real Estate Prices
- Sands of Wealth - Morocco Real Estate Forecasts
- Veles Club - Morocco Property Investment Guide
- Global Property Guide - Morocco Price History
- Statista - Morocco Real Estate Outlook