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As of June 2025, property prices in Marrakech are experiencing steady growth with annual increases ranging from 3% to 7%.
The city's real estate market continues to attract strong demand from both domestic and international investors, driven by tourism recovery, infrastructure development, and favorable exchange rates for foreign buyers. While the explosive 20% growth seen in 2024 has moderated, Marrakech remains one of Morocco's most dynamic property markets with consistent price appreciation across most segments.
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Marrakech property prices are rising at 3-7% annually in 2025, with luxury properties and tourism-focused areas leading growth.
Foreign investment has surged over 55% since 2024, while infrastructure improvements and government policies support continued market expansion.
| Property Type | 2024 Average Price | 2025 Projected Price | Annual Growth Rate |
|---|---|---|---|
| Apartments (City Center) | 13,000 MAD/m² | 13,650-14,040 MAD/m² | 5-8% |
| Luxury Villas (Palmeraie) | 20,700 MAD/m² | 21,950-23,200 MAD/m² | 6-12% |
| Traditional Riads (Medina) | 1.5-5 million MAD | 1.6-5.4 million MAD | 7-8% |
| Furnished Apartments | Variable by location | 5-8% increase | 5-8% |
| Land (Premium Areas) | Variable by zone | 8-12% increase | 8-12% |
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?
Marrakech property prices have shown moderate but consistent growth in the first half of 2025.
Apartments in the city center average around 13,000 MAD per square meter (approximately €1,200/m²), representing a slight increase from 12,955 MAD/m² recorded in 2024. This 0.3% growth reflects the market's stabilization after the significant surge experienced in 2024.
Luxury villas, particularly in sought-after areas like the Palmeraie, command higher prices at approximately 20,700 MAD per square meter (around €1,900/m²). These premium properties have maintained their value well, showing resilience even as the broader market has moderated from the exceptional growth rates of the previous year.
Traditional riads in the Medina present a wide price range depending on their condition and exact location, with prime properties typically priced between 1.5 to 5 million MAD, though exceptional properties can exceed this range significantly.
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How much have property prices increased in Marrakech during 2024-2025?
The Marrakech property market experienced a remarkable surge in 2024, with prices increasing by over 20% year-on-year.
This explosive growth was driven by exceptionally strong demand from both local and international buyers, particularly targeting luxury properties and short-term rental investments. The tourism sector's robust recovery post-pandemic created unprecedented demand for properties suitable for vacation rentals and hospitality uses.
As we reach mid-2025, the market has entered a more sustainable growth phase. Current price appreciation ranges between 3% to 7% annually for mainstream residential properties, while luxury and tourism-focused properties continue to see stronger growth rates of 5% to 8%. This moderation represents a healthy correction from the unsustainable pace of 2024.
The Hivernage district has been particularly notable, with property prices climbing consistently due to growing demand for luxury homes and the area's ongoing transformation. Real estate experts predict this upward trend will persist, with prices potentially rising by 3% to 7% throughout 2025.
Foreign investment has played a crucial role in these price movements, with international buyers accounting for a significant portion of high-end transactions.
Which neighborhoods in Marrakech are experiencing the fastest price growth in 2025?
Several key neighborhoods in Marrakech are leading price appreciation in 2025, each driven by unique factors.
Targa has emerged as a transformation hotspot, benefiting from rapid development, improved accessibility, and new residential projects. The area's strategic location and infrastructure improvements have made it increasingly attractive to both investors and residents seeking modern amenities.
Agdal continues to attract significant residential and commercial investment, with new complexes driving up property values. The neighborhood's established reputation and continued development have sustained strong price growth throughout 2025.
Sidi Ghanem has gained popularity as an up-and-coming area, particularly appealing to creative businesses and residential projects. Its evolving character and relatively affordable entry points have attracted investors looking for growth potential.
The Hivernage district remains a hotspot for high-end property buyers due to its proximity to luxury hotels and vibrant nightlife. Property prices here have been climbing driven by growing demand for luxury homes and the area's ongoing transformation, with new hotel developments like the Ascott Hivernage Marrakech boosting the district's luxury appeal.
Luxury zones including the Palmeraie have seen land prices surge, especially for high-end villas and residences, with some areas experiencing near-doubling of values over recent years.
What types of properties are seeing the biggest price increases in Marrakech?
Luxury villas are experiencing the strongest price appreciation in Marrakech's current market cycle.
Properties in the Palmeraie, Hivernage, and new luxury developments are commanding premium prices due to their exclusivity and appeal to high-net-worth individuals. These villas offer privacy, extensive grounds, and often come with resort-style amenities that international buyers particularly value.
Renovated riads in the Medina represent another high-growth segment, driven by exceptional demand from foreign buyers and the thriving short-term rental market. These traditional properties offer unique architectural character combined with modern amenities, making them highly sought-after for both personal use and investment purposes.
Furnished apartments, especially those targeting the short-term rental and tourism sector, are experiencing annual appreciation rates of 5-8%. The growth in tourism and the popularity of platforms like Airbnb have made these properties particularly attractive to investors seeking rental income.
Eco-friendly and sustainable properties are commanding premium pricing due to government incentives and growing consumer preference for environmentally conscious living. These properties often incorporate solar energy, water conservation systems, and sustainable building materials.
Properties with rooftop terraces have seen demand increase by 10% over the past year, reflecting buyers' preferences for outdoor living spaces and panoramic views of the city.
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How are current mortgage rates affecting property purchases in Marrakech in 2025?
Mortgage market conditions in Morocco have remained relatively stable through 2025, supporting property market activity.
Morocco maintains one of the most advanced mortgage markets in the MENA region, with loan-to-value ratios reaching up to 100% of appraised property value and typical terms extending to 20 years. This accessibility has been crucial in maintaining buyer activity despite rising property prices.
Islamic banking has gained significant traction, with at least 10% of all real estate purchases in Marrakech now financed through Sharia-compliant products. Islamic real estate loans reached 23.1 billion dirhams by mid-2024, representing a 13.5% increase from the previous year.
Government mortgage guarantee funds including FOGARIM and FOGALOGE continue to make lending accessible to middle and low-income families, supporting broader market participation. The 2025 Finance Law introduced simplified tax systems for real estate income and reduced marginal income tax rates, enhancing purchasing power for potential buyers.
While construction costs have risen due to global inflation and supply chain disruptions, the mortgage market's stability has helped maintain transaction volumes, with Marrakech seeing a 12% increase in real estate transactions in 2024 compared to 2023.
What is the current foreign investment situation in Marrakech's property market?
Foreign investment in Marrakech's real estate market has experienced exceptional growth, surging by over 55% compared to 2024 levels.
European investors continue to dominate foreign purchases, particularly benefiting from favorable exchange rates. In 2023, the Euro to Moroccan Dirham exchange rate averaged 10.962 MAD per EUR, reaching as high as 11.245 MAD, making Moroccan properties significantly more affordable for European buyers.
Middle Eastern investors, particularly from Gulf countries, maintain their strong presence in the luxury segment, drawn by cultural ties and Morocco's Islamic finance options. These buyers typically focus on high-end villas and premium developments that offer both lifestyle benefits and investment potential.
Asian investment represents a growing trend, with Chinese buyers showing increased interest following Morocco's visa waiver policy. This diversification of foreign investor origins helps stabilize demand and reduces dependence on any single market.
Foreign buyers currently own approximately 10% of all luxury properties in Morocco, with particular concentration in Marrakech's premium neighborhoods. These investors typically focus on urban apartments, luxury villas, and traditional riads in medinas, viewing them as both lifestyle investments and portfolio diversification tools.
The Moroccan government has rolled out tax incentives including exemptions from rental income tax and urban tax for new constructions, making Marrakech even more attractive for international buyers.
How do Marrakech property prices compare to other major Moroccan cities in 2025?
Marrakech maintains its position as a competitively priced major Moroccan city while offering unique value propositions.
| City | Apartments (MAD/m²) | Villas (MAD/m²) | 1BR Rent (City Centre) | Price per Sq Ft (City Centre) |
|---|---|---|---|---|
| Marrakech | 13,000 | 20,700 | 4,200 MAD | 1,187 MAD |
| Casablanca | 14,500 | 20,300 | 5,500 MAD | 1,879 MAD |
| Rabat | 14,500 | 20,300 | 5,000+ MAD | 1,500+ MAD |
| Tangier | 9,000-13,000 | Variable | Lower than Marrakech | Variable |
| Agadir | 10,000-20,000 | Variable | Competitive rates | Coastal premium |
Marrakech offers more affordable options than Morocco's economic capital Casablanca and administrative capital Rabat for both purchase and rental markets. However, luxury segments across all cities are converging in pricing as international demand grows.
The city's unique positioning as a cultural and tourism hub provides additional value that pure price comparisons don't capture, including higher rental yields and stronger capital appreciation potential in tourism-focused properties.
What are the property price forecasts for Marrakech in 2026?
Real estate experts predict continued steady growth for Marrakech's property market throughout 2026, with annual price increases expected to remain in the 3-7% range.
Infrastructure developments will play a crucial role in driving future appreciation. The Marrakech-Agadir high-speed rail line project is expected to significantly impact property values along the corridor, with experts predicting 8-12% appreciation for properties near planned stations. This follows the successful precedent of the Tangier-Casablanca line, which demonstrated the transformative effect of improved transportation infrastructure.
Preparations for the 2030 FIFA World Cup are already creating speculative price increases in certain neighborhoods, with investors anticipating long-term benefits from the international attention and infrastructure improvements. Properties within 5 kilometers of planned facilities are commanding premiums of 10-15% over comparable properties in other areas.
The luxury and eco-friendly property segments are expected to outperform the broader market, driven by sustained foreign interest and government incentives for sustainable development. Environmental consciousness among buyers continues to grow, creating premium pricing opportunities for developers who incorporate green technologies.
Urbanization trends support continued demand, with Morocco's urban population expected to reach nearly 68% by 2030, sustaining pressure on city properties and supporting price appreciation in well-located developments.
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.
How has tourism recovery affected Marrakech property prices in 2025?
Tourism recovery has been a fundamental driver of Marrakech's property market strength throughout 2025.
The short-term rental sector has experienced particularly robust growth, with Airbnb listings in Marrakech surging to 7,965 active properties by 2024, contributing to a 15% rise in rental income for property owners. The sector achieved a 63% occupancy rate with daily rates averaging MAD 748, demonstrating strong profitability that attracts continued investment.
Tourism's impact extends beyond rental properties to drive broader market demand. International visitors seeking second homes and vacation properties have maintained strong purchasing activity, particularly in areas like the Medina, Palmeraie, and Hivernage that offer authentic Moroccan experiences combined with luxury amenities.
The government's active promotion of Marrakech as a luxury destination has enhanced cultural offerings and attracted new market segments. TripAdvisor's recognition of Marrakech as the 8th best city for tourists globally, and its status as Africa's most popular tourist destination, continues to drive international attention and investment interest.
Infrastructure improvements supporting tourism, including the expanded Marrakech Menara Airport, have enhanced the city's accessibility and appeal to international buyers. These developments create positive feedback loops where improved tourism infrastructure attracts more visitors, which in turn drives demand for vacation rental properties.
The combination of strong tourism performance and property investment has created a self-reinforcing cycle that supports continued price appreciation in tourism-focused market segments.
What impact are government policies having on Marrakech property prices in 2025?
Government policies at both national and local levels are actively supporting Marrakech's property market growth through 2025.
The 2025 Finance Law introduced significant reforms including a simplified tax system for real estate income, clarified capital gains tax on property transfers, and reduced marginal income tax rates to enhance purchasing power. These changes have improved market transparency and reduced transaction costs for both buyers and sellers.
Housing accessibility initiatives include the national program to build 200,000 homes, with over 4,700 units specifically allocated to Marrakech. The Direct Housing Assistance Programme launched in 2024 has improved financing access for first-time buyers, supporting broader market participation.
Al Omrane, a major state-owned developer, plans to invest 6.43 billion dirhams by 2025 to accelerate housing projects and boost infrastructure. Their partnership with private sector developers is particularly focused on creating affordable housing options while maintaining quality standards.
Tax incentives specifically targeting sustainable development include reduced registration fees and tax exemptions for investments in eco-friendly projects. These policies have created premium pricing opportunities for developers incorporating green technologies and sustainable design principles.
Digitization of notarial deeds and stricter regulation of real estate transactions, particularly for luxury properties, have enhanced market transparency and investor confidence. Foreign investment facilitation measures continue to streamline the purchase process for international buyers.
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What are the current rental yields in Marrakech compared to purchase prices?
Marrakech continues to offer attractive rental yields that compare favorably with other international markets, particularly for well-positioned properties.
Short-term rental properties are generating particularly strong returns, with yields ranging from 7.29% to 9.18% in prime locations. This performance significantly exceeds rental yields available in many European cities, making Marrakech attractive to investors seeking both capital appreciation and income generation.
Traditional long-term rentals in central locations typically yield between 5-7% annually, though exact returns vary significantly based on property type, location, and condition. Properties in tourist-focused areas or near major business districts generally command premium rental rates.
The furnished apartment segment has shown particularly strong performance, with owners reporting rental income increases of 15% in 2024 compared to previous years. This growth reflects both rising tourist demand and increasing numbers of professional expatriates seeking high-quality accommodations.
Luxury properties in areas like the Palmeraie, while requiring higher initial investments, are generating yields at the upper end of market ranges due to their appeal to affluent tourists and long-term international residents. These properties often command daily rates exceeding MAD 1,000 during peak seasons.
When compared to property purchase prices, these yield levels provide compelling total return potential when combined with the 3-7% annual capital appreciation currently being experienced across most market segments.
How do construction costs and supply constraints affect pricing in 2025?
Construction costs have risen significantly in 2025, creating upward pressure on property prices across Marrakech's market segments.
Global inflation and supply chain disruptions have increased material costs, with developers reporting 8-15% increases in construction expenses compared to 2024 levels. These cost pressures are being passed through to end buyers, contributing to the sustained price appreciation observed across new development projects.
The number of construction permits in Marrakech has increased substantially, with authorities issuing permits for numerous residential and commercial projects. However, the time lag between permit issuance and project completion means that supply constraints continue to support pricing in the near term.
Government initiatives are addressing supply constraints through streamlined permitting processes and partnerships with private developers. The focus on affordable housing production aims to increase supply in mid-market segments while maintaining quality standards.
Premium material costs for luxury finishes and imported components have particularly impacted high-end development costs. This has created additional pricing pressure in the luxury segment, where buyers expect international-standard finishes and amenities.
Despite these cost pressures, demand remains robust enough to absorb higher prices, particularly in desirable locations where land scarcity adds an additional supply constraint. Areas like the Medina face particular supply limitations due to the finite number of traditional riads available for renovation.
The combination of rising construction costs and strong demand fundamentals suggests that current pricing trends are likely to persist through the remainder of 2025.
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 our comprehensive analysis of market data, expert forecasts, and current trends, property prices in Marrakech are definitively going up in 2025. The answer is "Yes" – prices are rising at a sustainable 3-7% annual rate.
This growth is supported by strong fundamentals including robust foreign investment (up 55%), tourism recovery driving rental demand, government policy support, and ongoing infrastructure development. While the explosive 20% growth of 2024 has moderated, the current trajectory represents healthy, sustainable appreciation that positions Marrakech as an attractive investment destination.
Sources
- Agenz - Real Estate Prices in Morocco
- Sands of Wealth - Marrakech Price Forecasts
- LinkedIn - Marrakech Real Estate Landscape
- IPST Education - Economy News
- Sands of Wealth - Morocco Price Forecasts
- Capital Properties - Marrakech Real Estate Prices
- Global Property Guide - Morocco Price History
- Orchid Island - Real Estate Investment Morocco
- Sands of Wealth - Morocco Real Estate Forecasts
- Vaneau Maroc - Morocco Real Estate Market 2025