Authored by the expert who managed and guided the team behind the Morocco Property Pack
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What will happen in Marrakech’s real estate market? Will prices go up or down? Is Marrakech still a hotspot for foreign investors? How is Morocco’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Marrakech, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) European buyers will lead the foreign market due to favorable exchange rates
European buyers are taking over the Marrakech real estate market thanks to favorable exchange rates.
Back in 2023, the Euro to Moroccan Dirham exchange rate was a sweet deal, averaging 10.962 MAD per EUR and even hitting 11.245 MAD. This made Moroccan properties more affordable for Europeans, who found themselves getting more bang for their buck.
When you compare property prices in Marrakech to those in big European cities like Paris or London, Marrakech is a steal. Not only are the prices lower, but the rental yields are higher, ranging from 7.29% to 9.18%. This means European investors are seeing better returns on their investments.
The Moroccan government is also rolling out the red carpet with tax perks. They're offering exemptions from rental income tax and urban tax for new constructions, making Marrakech even more tempting for European buyers.
Media buzz is another factor. Marrakech's cultural charm and investment potential are getting a lot of attention, drawing in more Europeans eager to invest.
Sources: Marrakech Sunset, J.P. Morgan, Global Property Guide
2) More foreign buyers will invest in Marrakech due to its cultural charm and investment opportunities
Foreign buyers are increasingly targeting Marrakech for its cultural appeal and investment potential.
In recent years, property prices in Marrakech have been on the rise, largely due to the city's growing popularity among tourists and foreign investors. This surge in interest is not just about the beautiful landscapes; it's about the unique cultural and lifestyle experiences Marrakech offers. The influx of tourists has led to a higher demand for short-term rentals and vacation homes, which in turn, drives up property prices.
Foreign investors are particularly drawn to Marrakech's distinctive properties. The Moroccan government sweetens the deal by offering tax advantages like exemptions from rental income tax and urban tax for new constructions. These incentives make Marrakech a hot spot for real estate investment, attracting a diverse range of buyers looking for both cultural richness and financial gain.
Marrakech's vibrant atmosphere and rich history have earned it accolades in global travel and lifestyle publications. This international recognition boosts the city's appeal, making it a sought-after destination for property buyers. The Moroccan government's proactive stance on attracting foreign investments, coupled with ongoing infrastructure improvements, enhances investor confidence even further.
The city's unique blend of traditional Moroccan culture and modern luxury living is a major draw. Cultural events and festivals, along with increased visibility on social media, highlight Marrakech's allure. This combination of factors not only attracts tourists but also draws international attention and investment, making it a prime location for those looking to invest in a culturally rich environment.
Sources: Capital Properties, Argophilia, Agence KNA, CEO Middle East
We have made this infographic to give you a quick and clear snapshot of the property market in Morocco. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Rental yields in suburban areas will drop as more properties become available
Marrakech's suburban areas are seeing a boom in new housing developments, especially in 2023 and 2024.
This means more rental options are available for potential tenants, but not enough people are looking to rent them. When there are more homes than renters, vacancy rates go up, leaving many properties empty.
Landlords, facing empty properties, might have to lower rental prices to attract tenants. This situation can lead to a drop in rental yields, making it less profitable for property owners.
The Global Property Guide highlights that Morocco's housing market is oversupplied, especially in suburban areas. This oversupply means too many properties are available, pushing down both property prices and rental yields.
People are increasingly choosing to live in urban areas for better amenities and job opportunities. This trend means less demand for suburban rentals, further impacting rental yields negatively.
Sources: Global Property Guide, Properstar
4) Rental yields in the city center will rise as tourism flourishes
Rental yields in Marrakech's city center are on the rise as tourism flourishes.
In 2023, Morocco welcomed 13.2 million tourists, breaking its previous record. This influx has pushed room occupancy rates to 73% in May 2023, showing a strong demand for city center accommodations. With more visitors, the need for places to stay is only growing.
Platforms like Airbnb are becoming increasingly popular, with Marrakech ranked as the 6th most popular travel destination for 2024 on the site. This trend indicates that tourists prefer short-term rentals, which boosts rental yields. The city's airport, Marrakech-Menara, also saw a record 18 million passengers in 2023, further fueling tourism and rental demand.
Government efforts to promote sustainable and eco-friendly developments are likely to enhance property values that align with these initiatives. Infrastructure projects, including new roads and public transport, are improving connectivity, making certain neighborhoods more appealing and likely to see price hikes.
Sources: Go With Guide, Wikipedia, AGBI
5) Property values in Hivernage will rise steadily as it becomes a high-end tourism hub
The Hivernage area in Marrakech is becoming a hotspot for high-end tourism, leading to a steady rise in property values.
Property prices here are climbing, with experts predicting an annual increase of 3% to 7%. This is largely because tourists are drawn to the unique charm of the area, especially the traditional riads in the Medina, which are seeing significant price hikes.
Luxury hotels and resorts are popping up, adding to the allure. For instance, Ascott is bringing two new properties, including the Ascott Hivernage Marrakech, which will boost the area's luxury accommodation scene. Existing high-end hotels like the Sofitel Marrakech Palais Imperial & Spa already attract a wealthy crowd.
Hivernage is also buzzing with high-end restaurants and boutiques, catering to those with a taste for the finer things. This is part of a broader gentrification trend, making the area more appealing to both locals and tourists. The Moroccan government is also pushing Marrakech as a luxury destination, enhancing cultural offerings to draw in new markets.
Real estate reports highlight Hivernage as a prime investment spot due to its upscale amenities and closeness to major attractions. Surveys show affluent tourists prefer Hivernage for its peaceful vibe and chic offerings. Media coverage portraying Hivernage as a trendy neighborhood further boosts its reputation, attracting more affluent visitors and investors.
Infrastructure and amenities tailored for high-end tourists, along with partnerships between local businesses and international luxury brands, are cementing Hivernage's status as a luxury destination. These elements are collectively driving up property values in the area.
Sources: Business Traveller, The Luxury Editor, Quest Search, Marrakech Price Forecasts
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6) Affordable housing prices will stay steady as government efforts balance the market
The Moroccan government is actively working to stabilize the housing market by focusing on affordable housing initiatives.
They've rolled out a national program aiming to build 120,000 housing units, with financial backing for homes priced between 250,000 and 300,000 dirhams. This move is designed to not only improve living conditions but also to balance the housing market effectively.
Al Omrane, a major player in Morocco's real estate scene, is investing heavily to speed up housing projects. By 2025, they plan to pour in 6.43 billion dirhams to meet the growing demand and boost infrastructure. Their partnership with the private sector is key to making affordable housing a reality.
In recent years, housing prices in Morocco have shown signs of leveling off. For instance, the residential real estate price index dipped by 0.1% in 2022, continuing a trend from previous years. This indicates that government efforts are indeed helping to keep prices stable.
These initiatives are crucial as they aim to ensure that affordable housing prices remain stable, thanks to government strategies that balance the market.
With these efforts, the Moroccan housing market is on a path to stability, making it an attractive option for potential buyers looking for affordable options in the country.
Sources: Global Property Guide, Fes News, 7 News
7) Sustainable property development will grow due to new tax incentives for eco-friendly homes
New tax incentives for eco-friendly homes are set to significantly boost the development of sustainable properties.
In Morocco, the government has been proactive with initiatives like the "Plan Maroc Vert," which included tax breaks for eco-friendly homes. These incentives make it financially attractive for developers to invest in sustainable properties, as they can save money on taxes while contributing to environmental goals. The Marrakech Sustainable City Project, which started in 2023, is a prime example of how these incentives are already making an impact. This project focuses on integrated, resilient, and sustainable urban development, promoting nature-based solutions and low-carbon infrastructure. Such initiatives highlight the growing focus on sustainable property development, driven by both government support and market demand.
Moreover, consumer interest in eco-friendly homes has been on the rise. Surveys have shown that sustainability and green living are becoming key trends in the Marrakech rental market. This growing demand encourages developers to build more eco-friendly homes, knowing that there is a ready market for these properties. Additionally, the Morocco Construction Materials Market is expected to grow significantly, driven by the demand for eco-friendly construction materials, further supporting the development of sustainable properties.
Sources: UNESCO, 6Wresearch, Capital Properties
8) Virtual reality tours will attract more international buyers by transforming the property viewing process
Virtual reality tours are changing how people buy property, especially for those looking from abroad.
In 2023 and 2024, the real estate world saw a big shift with more people using virtual reality to check out homes. The virtual tourism market jumped from $10.52 billion to $12.38 billion in just one year, showing how much people love these immersive experiences.
Take Marrakech, for example. By 2024, 28 real estate agencies in the city offered virtual tours, making it super easy for international buyers to explore homes without hopping on a plane. This was a huge plus for those who wanted to save on travel costs and time.
During this time, homes with virtual tours got 87% more views than those without. Younger buyers, especially those aged 18 to 34, were all over this trend, being 130% more likely to book a showing if they could first take a virtual tour.
Real estate agencies offering virtual tours had a leg up, providing a more engaging experience that led to faster sales. Homes with these tours sold for 9% more and closed 31% quicker than those without, making it a win-win for sellers and buyers alike.
For international buyers, virtual tours were a game-changer. They could view properties at their own pace, cutting down on the need for multiple in-person visits. This convenience led to 48% more interest in homes with virtual tours, helping buyers make quicker decisions.
Sources: PhotoUp, Agenz.ma, GlobeNewswire
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.
9) Smart home features will attract tech-savvy buyers as they become standard in new developments
Smart home technology is quickly becoming a must-have in new property developments.
By 2029, 90.7% of households worldwide are expected to embrace smart home technology, a big leap from 73.5% in 2024. This shift is not just happening globally; in Africa, the smart home market is set to grow from USD 2.32 billion in 2023 to USD 8.63 billion by 2030, thanks to urbanization and government support. Imagine walking into a home where everything from the lights to the thermostat is controlled by your voice or smartphone.
In the U.S., the appetite for smart home gadgets is on the rise. By 2024, 37% of Americans are considering buying smart home tech, a significant jump from previous years. It's not just about convenience; it's about lifestyle. Today, 65% of Americans own at least one smart home device, up from 51% in 2020. Younger buyers, especially those under 45, are leading the charge, with many already using smart lighting systems.
Real estate listings are catching on, often highlighting smart home features to attract tech-savvy buyers. Developers are teaming up with tech companies to integrate these smart solutions into new builds, making them more appealing. Government incentives are also playing a role, with countries like Morocco pushing for more energy-efficient and connected homes.
Sources: Africa Smart Home Market, YouGov Report, Tomorrow's World Today
10) Residential areas near new parks and green spaces will become more attractive
New green spaces and parks can make nearby residential areas much more attractive.
Take Marrakech, for example, where areas like the Palmeraie and Agdal have seen property values rise thanks to eco-friendly developments and new parks. People are willing to pay more for homes near these green spaces, making them highly desirable.
Neighborhoods with green spaces tend to attract more residents and investors. This is because people prefer living in areas that offer a better quality of life. Parks provide places for relaxation, exercise, and community gatherings, which can boost both mental and physical health.
New parks can also give a boost to local businesses. While specific data for Marrakech isn't available, other cities have experienced increased foot traffic and business growth near new parks. This can lead to more vibrant communities, enhancing the appeal of residential areas.
In Marrakech, the introduction of green spaces has been part of a broader urban growth strategy. This strategy aims to reorganize territorial and social structures, making the city more livable and attractive to both locals and newcomers.
These developments are not just about aesthetics; they are part of a larger movement towards sustainable urban living. The presence of parks and green spaces is a key factor in this transformation, offering a glimpse into the future of urban planning.
Sources: ResearchGate, World Bank, Marrakech Price Forecasts
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.