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 residential property market shows steady growth with apartments averaging 13,000 MAD/m² and luxury villas commanding 25,000-30,000 MAD/m².
As of September 2025, the market displays solid fundamentals with strong foreign investment demand (55% of luxury transactions), healthy rental yields reaching up to 12% for villas, and thousands of new units planned for delivery through 2027. While transaction volumes have moderated by 3.1% compared to 2024's surge, price growth continues at 3-7% annually for mainstream properties.
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's property market demonstrates resilience with moderate price appreciation and strong rental performance across key segments.
Foreign investment drives luxury demand while construction activity remains robust with thousands of units scheduled for completion by 2027.
| Market Metric | Current Value | Trend/Forecast |
|---|---|---|
| Average Apartment Price | 13,000 MAD/m² | +3-7% annually |
| Luxury Villa Price | 25,000-30,000 MAD/m² | +10-15% annually |
| Apartment Rental Yield | 7.08% | Stable to improving |
| Villa Rental Yield | 8-12% | Strong performance |
| Foreign Investment Share | 55% (luxury segment) | Increasing |
| Transaction Volume (2024) | 6,676 units | -3.1% from 2023 |
| Time on Market | 77-90 days | Extended from 60-70 days |
What's the current average price per square meter for residential properties in Marrakech?
Apartments in central Marrakech currently average 13,000 MAD per square meter, equivalent to approximately €1,200 per square meter as of September 2025.
This represents a modest 0.3% increase from 2024's average of 12,955 MAD/m². The luxury villa segment commands significantly higher prices, ranging from 25,000 to 30,000 MAD/m² in premium areas like Palmeraie.
Over the past five years, price evolution has been uneven but generally positive. From 2020 to 2023, mainstream properties experienced moderate annual gains averaging 2-4% yearly. However, 2024 witnessed a sharp 20% surge across most segments, followed by the current stabilization period with 3-7% annual growth for mainstream properties.
Luxury properties continue to outperform with annual growth reaching up to 15% in prime locations, driven by strong foreign investor demand and limited supply in the most desirable neighborhoods.
How many residential transactions were completed last year compared to previous years?
Marrakech recorded approximately 6,676 residential transactions in 2024, representing a 3.1% decline from the previous year's 6,890 transactions.
This downward trend continues from 2023, which already showed a 3.0% decrease from 2022's 7,104 transactions. The 2022 figure itself represented only a modest 2.2% increase from 2021's baseline of 6,950 transactions.
The villa segment experienced the steepest decline with transactions falling 21.6% year-over-year, while apartment sales showed greater resilience with only a 2.2% decrease. This pattern suggests buyers are becoming more selective, particularly in the higher-end villa market.
Despite reduced volumes, the market maintains healthy fundamentals with sustained foreign interest and continued development activity across key neighborhoods.
What are the current rental yields in Marrakech compared to other Moroccan cities?
Marrakech apartment rental yields currently average 7.08%, positioning the city competitively against other major Moroccan markets.
| City | Apartment Yield | Villa Yield |
|---|---|---|
| Marrakech | 7.08% | 8-12% |
| Casablanca | 7.00% | 5.61-8.18% |
| Rabat | 6.68% | ~6% |
| Marrakech Suburban | Up to 14% | 10-14% |
| Agdal District | 9-11% | 11-13% |
| Route de l'Ourika | 10-14% | 12-14% |
| Palmeraie | 6-8% | 8-10% |
Marrakech villa yields significantly outperform both Casablanca and Rabat, ranging from 8% to 12% depending on location. Suburban areas like Route de l'Ourika and Agdal can achieve exceptional yields up to 14%, making them particularly attractive for rental investment strategies.
How many new housing units are expected in the next 2 years?
Thousands of new residential units are scheduled for delivery across Marrakech between 2025 and 2027, concentrated in five key growth areas.
The primary development zones include Agdal, Targa, Palmeraie, Route de l'Ourika, and sections of Hivernage. These neighborhoods are experiencing significant construction activity driven by both local developers and international investment.
Luxury and mid-market segments dominate the upcoming supply pipeline, reflecting developer confidence in sustained demand from both domestic buyers and foreign investors. Major infrastructure and tourism projects are catalyzing much of this new construction activity.
It's something we develop in our Morocco property pack.
What's the current average time properties stay on the market?
Properties in Marrakech currently stay on the market for 77 to 90 days before selling, representing a significant increase from previous years.
This extended timeline contrasts sharply with 2022 conditions, when properties typically sold within 60 to 70 days. The longer marketing period reflects increased supply availability and more cautious buyer behavior following 2024's price surge.
The shift indicates a normalization from the previous seller's market conditions, giving buyers more time to evaluate options and negotiate terms. However, prime properties in sought-after locations like central Gueliz or Palmeraie continue to move more quickly than the market average.
This trend suggests a more balanced market dynamic compared to the rapid sales pace experienced during the 2024 boom period.
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 are foreign buyers influencing the Marrakech property market?
Foreign buyers now account for 55% of all transactions in Marrakech's luxury property segment, representing a dominant force in the high-end market.
The primary international buyer demographics include French nationals, Spanish investors, Gulf country residents, British purchasers, and Belgian buyers. These groups concentrate their purchases in premium neighborhoods including Palmeraie, Hivernage, and Gueliz.
Foreign investment patterns focus heavily on luxury villas and high-end apartments, driving price appreciation in these segments well above the general market average. International buyers typically seek properties for vacation homes, rental investments, or relocation purposes.
This sustained foreign demand provides market stability and supports continued price growth in the luxury segment, while also influencing development patterns toward higher-end project specifications.
What's the current mortgage accessibility situation in Morocco?
Moroccan mortgage accessibility remains moderately favorable with average fixed interest rates ranging from 5.2% to 6.7% as of September 2025.
Banks typically offer loan-to-value ratios between 70% and 80%, with preference given to salaried local residents and qualified foreign buyers with stable income documentation. Approval ratios have improved slightly in 2025 due to better economic growth conditions.
Foreign buyers face more stringent documentation requirements but can access financing with proper income verification and legal residency status. Banks generally require comprehensive financial histories and may request additional collateral for non-resident borrowers.
The mortgage market benefits from competitive banking conditions, though foreign investors often find cash purchases more straightforward for completing transactions quickly in competitive bidding situations.
How much do construction costs currently amount to per square meter?
Construction costs in Marrakech currently range from 7,500 to 10,000 MAD per square meter, representing a 3-4% increase compared to the previous year.
This cost escalation stems from rising material prices and increasing labor market pressures as construction activity intensifies across the city. Steel, cement, and finishing materials have all experienced price increases due to both local demand and global commodity trends.
Higher construction costs are influencing final property sale prices, as developers pass through increased expenses to end buyers. This dynamic contributes to the ongoing price appreciation trend in new development projects.
Despite cost pressures, construction activity remains robust due to strong demand fundamentals and healthy profit margins for developers in most market segments.
What's the forecasted population growth impact on housing demand?
Marrakech's population is projected to increase by 12% over the next decade through 2035, creating sustained upward pressure on housing demand.
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.
This demographic growth combines natural population increase with continued in-migration from rural areas and other Moroccan cities attracted by tourism industry employment opportunities. The city's expanding role as a regional economic hub supports this population influx.
Growing population translates directly into increased housing demand across all market segments, from affordable housing for service industry workers to luxury residences for affluent new residents and foreign relocations.
Tourism sector expansion simultaneously drives demand for vacation properties, short-term rentals, and luxury housing, creating multiple demand streams that reinforce overall market growth.
How many major tourism projects will impact property demand?
Over a dozen large-scale hotel and resort projects are scheduled for completion within the next five years, concentrated in Palmeraie, Hivernage, and Route de l'Ourika areas.
These tourism developments create multiple positive impacts on residential property demand through increased employment opportunities, enhanced neighborhood amenities, and improved infrastructure investments. Hotel projects typically attract complementary residential developments in surrounding areas.
Major hospitality investments also drive demand for luxury housing from industry executives, seasonal residents, and investors seeking properties near high-end tourism facilities. This creates upward pressure on property values in project vicinity areas.
It's something we develop in our Morocco property pack.
What are the current vacancy rates across different property types?
Residential vacancy rates in Marrakech currently average 7-10% overall, with significant variation based on neighborhood and property type.
Prime central neighborhoods maintain lower vacancy rates between 4-6%, reflecting sustained demand for well-located properties. These areas benefit from proximity to business districts, cultural attractions, and transportation infrastructure.
Commercial property vacancy rates run higher at 12-15%, reflecting ongoing post-pandemic adjustments in retail and office space demand. However, districts like Gueliz show better commercial performance with below-average vacancy rates.
The residential vacancy pattern indicates healthy market absorption capacity, while commercial spaces continue adjusting to changed usage patterns following recent economic disruptions.
What are the projected price growth rates for the next three years?
Major real estate agencies forecast annual price growth of 3-7% for mainstream properties over the next three years, with luxury segments expected to appreciate even faster.
Luxury and vacation properties in prime locations are projected to experience annual price increases of up to 10% in certain districts, driven by continued strong foreign demand and limited supply availability.
These growth projections reflect balanced market conditions with steady demand growth, controlled supply increases, and favorable economic fundamentals supporting property values. Population growth and tourism expansion provide underlying demand support.
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 demonstrates solid fundamentals with steady price appreciation, strong rental yields, and robust foreign investment interest driving luxury segment performance.
The combination of population growth, tourism development, and international buyer demand creates favorable conditions for continued market expansion over the next three years.
Sources
- Global Property Guide - Morocco Price History
- Sands of Wealth - Marrakech Price Forecasts
- Sands of Wealth - Marrakech Real Estate Market Trends
- Agenz - Morocco Property Prices
- Global Property Guide - Morocco Rental Yields
- Sands of Wealth - Morocco Price Forecasts
- Properstar - Marrakech House Prices
- Federal Reserve Economic Data - Morocco Housing Index