Buying a property in Marrakech: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Marrakech's property market is included in our pack

Considering buying a nice property in Marrakech? You're not alone!

Many people are enchanted by Marrakech's exotic beauty and dream of owning a traditional riad or a modern villa in this city.

Does it make sense, though? Are property prices increasing in Marrakech? How much does it cost? Should I buy property in the Medina or Gueliz? Are there any hidden fees? What yields can I expect?

In this article, everything is sorted out for you.

The SandsOfWealth team knows this market like the back of their hand. As a matter of fact, we have condensed all our findings in a pack. Get it now.

In the lines below, we'll share useful information and some practical tips.

How's the property market in Marrakech?

Is the property market getting better or worse? People have different views. We like to be unique and analyze the latest data and stats to make accurate conclusions.

Types of properties

In Marrakech, you can find a variety of properties for sale.

These include traditional riads with intricate architecture and inner courtyards, modern apartments in bustling neighborhoods, luxurious villas with spacious gardens and swimming pools, as well as commercial properties like shops and restaurants in vibrant markets or commercial areas.

Whether you're seeking historical charm, contemporary living, or business opportunities, Marrakech offers a diverse range of properties to suit different preferences and needs.

Buying or renting?

(If you're buying for yourself and not to rent out)

Whether you've already made Marrakech your home or are considering it for the future, you might be wondering about the advantages of buying a property versus renting in this Moroccan city.

Without a doubt, you should buy if you want to acquire equity and have more control over your living situation.

One data can help us make a decision - the price-to-rent ratio. This metric give an indication of how many years of rental income it would take to cover the cost of buying a property at its current price.

According to Numbeo, the property price-to-rent ratio in Marrakech is around 18.71, which is around the world average.

In simple terms, it would typically require 19 years of rental payments, on average, to buy a property in Marrakech.

Property prices in Marrakech

On average, according to the last data from High Commission for Planning (HCP), purchasing a property in Marrakech will cost you around $1,460 per square meter.

Naturally, property prices are quite spread out. A riad in the Medina of Marrakech might have a different price per square meter than a luxury villa in Palmeraie. We actually give you a more detailed breakdown in our pack for buying property in Marrakech and in Morocco.

To help you understand better, it means that, instead of buying an apartment in Paris or London, you can afford 9 properties in Marrakech.

However, housing prices in Marrakech are higher (62%) than in Fes.

The most expensive neighbourhoods in Marrakech are probably Guéliz and Hivernage, while the cheapest neighbourhoods are likely to be the outlying areas of the city.

Trends

First, let's acknowledge that Morocco is a relatively stable country today. The last Fragile State Index that has been reported for this place is 70.1.

Keep in mind this important point when thinking about whether it's a good idea to buy a property in Marrakech.

Besides that, if we look at the IMF's GDP forecasts, Morocco's economy is expected to soar by 14.1% in the coming 5 years, resulting in an average GDP growth rate of 2.8%.

If you want to invest in real estate in Marrakech it's a good thing because, when people experience an increase in wealth, it typically translates to a surge in housing costs.

Also, in Morocco, the average GDP per capita has dropped by 0.1% over the last 5 years. It's not a good number.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Morocco right now.

Buying property in Marrakech

Buying real estate in Marrakech can be challenging due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Marrakech and in Morocco.

Buying process

In our pack, we've explained the entire buying process in detail. We've provided clear information about prices and yields based on the area, guidance on negotiating the price, and options for securing a mortgage.

Now, we're offering you a simpler version, step-by-step, to make it easier for you to grasp.

This is the step-by-step process to purchase a property in Marrakech:

1. Research the Marrakech property market and local regulations.
2. Hire a reputable real estate agent familiar with Marrakech.
3. Choose properties, considering location and amenities.
4. Verify the "Certificat d'Urbanisme" for building compliance.
5. Negotiate the price and terms with the seller.
6. Sign a "Compromis de Vente" (preliminary sales agreement).
7. Engage a notary to handle the legal aspects.
8. Obtain a "Certificat de Non-Expropriation" to ensure the property isn't subject to government acquisition.
9. Transfer funds to a Moroccan bank account for the purchase.
10. Finalize the "Acte Authentique" (final deed) at the notary's office.
11. Register the property with the "Conservateur de la Propriété Foncière."
12. Pay the "Droit d'enregistrement" (property transfer tax) to complete the purchase.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Morocco.

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Where to find a property

Explore these websites to find properties in Marrakech.

• Kensington Luxury Properties - Luxury real estate agency specializing in the sale and rental of luxury properties in Morocco, offering a wide range of villas and other properties.
• Realtor - The world's largest source of international properties, offering a wide range of real estate listings for buying, selling, and renting properties in Morocco.
• Expat - Expat.com is a platform that provides housing listings in Morocco for buying, selling, and renting properties.
• Mubawab - Mubawab is the leading property site in Morocco, offering a wide range of properties for sale and rent.
• Rightmove - Property marketplace specializing in properties for sale and rent in Morocco, offering a wide range of options and connecting buyers with estate agents.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Morocco.

Which properties for which budget?

As mentioned before, the average price per sqm in Marrakech is $1,460. The cost of a one-bedroom property (60 sqm) is about $88,000, and a two-bedroom (85 sqm) would be around $124,000.

However, property prices can vary because of their qualities and where they're located.

Property prices in Marrakech's top areas are often more expensive. An apartment in Hivernage could cost around $170,000, while a residence in Palmeraie might be about $330,000.

Yet, there are places that are easier on the wallet. You may find a condominium in Sidi Youssef Ben Ali for $50,000, or an apartment in Gueliz priced only at $40,000.

Find a more detailed breakdown in our full pack for buying property in Morocco.

Common mistakes

Here are the main pitfalls when buying a property in Marrakech, Morocco:

• Complex land tenure system, with "Soulaliyate" land reserved for indigenous communities.
• The presence of "Gharimat," properties owned by minors, requiring special procedures.
• Non-disclosure of "Medina" properties' historical heritage restrictions.
• Ambiguities in the "Douar" properties' agricultural and residential designations.
• Water rights issues affecting rural properties in surrounding areas.
• "Diwans" or informal land sales without proper registration or legal protection.
• Currency exchange rate fluctuations impacting purchase costs for foreign buyers.
• Zoning and construction regulations that may differ from other countries.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Morocco Property Pack

Living in Marrakech

Living in Marrakech is a unique and exciting experience that offers a vibrant culture, stunning scenery, and a wide range of activities, making it an ideal place for those looking to invest in property.

Cost of living

The cost of living in Marrakech is generally low compared to many other cities in Europe and North America. Basic necessities such as food, accommodation, transportation, and entertainment are all relatively inexpensive.

Here are some examples to better understand the cost of living in Marrakech, Morocco:

• Rent for a one-bedroom apartment in the city center: $400/month.
• Monthly public transportation pass: $20.
• Dinner for two at a local restaurant: $25.
• 1 liter of gasoline: $1.10.
• Utilities (electricity, water, heating) for an 85m² apartment: $70/month.
• Gym membership at a local fitness center: $30/month.
• Ticket to a movie at a cinema: $6.
• Cup of traditional Moroccan mint tea at a café: $2.

Neighbourhoods

We want to show information clearly and in a way that people can understand easily. So, we made a table that shows the different areas in Marrakech. For yields, prices and rents, check our property pack.

Life in Marrakech

Marrakech is a major economic hub in Morocco, with a strong tourism sector, and a growing manufacturing and service industry. The city is also home to a number of foreign investments, particularly in the technology and finance sectors, and has become an increasingly important regional center for trade.

What expats usually like the most in Marrakech is the combination of modern amenities and traditional culture, such as the beautiful architecture, vibrant nightlife, and the diverse cuisine.

Also, you have to know that Marrakech can experience extreme heat and water scarcity due to its desert climate and increasing tourism demand.

A good point for a property investor - Marrakech has a light rail system known as the Marrakech Tram, which opened in December 2011.

Marrakech has good access to healthcare services, with many hospitals, clinics, and pharmacies available in the city.

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Renting out in Marrakech

This section is for you if you want to buy property solely for renting out and earning income.

Long-term

Tenant Profiles in Marrakech

If you decide to buy and rent out to long-term tenants, you should target people looking for a place to live in the city, such as students, young professionals, and expats. Additionally, if you want to rent out on a short-term basis, you should look into targeting travelers, such as tourists and business travelers.

Here is a little summary table we've made for you.

Rental yields

Nowadays, the rental yields you get in Marrakech are between 5% and 7%. There are some opportunities. So you know, a "good" rental yield is above 7%.

Properties near popular tourist attractions, such as the Jemaa el-Fnaa square and the Koutoubia Mosque, tend to have the highest rental yields in Marrakech due to the high demand for accommodation from tourists. Additionally, apartments or houses in the centre of the city, which are close to amenities such as shops, restaurants, and public transport, also tend to have good rental yields.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Marrakech are taxed at 15%, which is not much.

Short-term

You could also decide to rent short-term to tourists, business travelers, and those looking to attend a special event in Marrakech. Additionally, the city's popularity as a destination for weddings and honeymoons could bring in a steady stream of short-term renters.

If you decide to go with that option, look for properties in the Gueliz neighbourhood, near the city centre, or in the Palmeraie area, which is known for its luxury villas.

You will have some competition though - there are around 11,000 Airbnb listings in Marrakech. The average daily rate stands around $97.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Marrakech can make around $1100 per month. Also, the average occupancy rate is estimated at 50%.

Is it worth buying real estate in Marrakech then?

Absolutely, buying a property in Marrakech can be a fantastic idea if you're looking for a long-term home or a place to retire. It allows you to immerse yourself in the city's rich culture and enjoy the benefits of property ownership.

Moreover, if you aim to generate rental income, Marrakech offers the potential for high rental yields, making it an appealing choice for investors. With a relatively low cost of living, the city can attract tenants, such as expats and tourists, offering the opportunity to create a steady income stream.

However, if your plans involve a short stay or you're uncertain about which neighborhood suits you best, buying property may not be the wisest decision. The complex property market in Marrakech, coupled with legal and cultural differences, can pose challenges for newcomers. It's crucial to do your homework thoroughly or seek professional guidance.

Additionally, if you're expecting rapid property appreciation or quick profits, Marrakech might not align with those expectations. Realistic investment goals are essential in this unique market.

In summary, Marrakech offers exciting possibilities for property buyers seeking a long-term residence, rental income, or cultural immersion. Yet, it requires careful consideration, research, and an understanding of the local market dynamics. For those with short-term plans or uncertainty, renting may be the more practical choice.

Make sure you understand the real estate market in Marrakech

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.