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
What is happening in Marrakech’s real estate market? Are prices on the rise or decline? Is the city still a magnet for international investors? How are local policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the bustling medina to the serene Palmeraie. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Marrakech real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
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1) Luxury rental prices will keep rising as demand for high-end accommodations stays strong
Luxury rental prices in Marrakech are on the rise due to a strong demand for high-end accommodations.
Morocco is aiming to double its tourist numbers to 26 million by 2030, with a special focus on luxury tourism. This means more people are seeking upscale places to stay in Marrakech. The city is becoming a hotspot for affluent travelers, and this trend is expected to continue.
There's been a 55% increase in high-net-worth individuals visiting Marrakech. These wealthy visitors are naturally drawn to luxury rentals, which is pushing up demand. The real estate market is also thriving, with over 400 luxury properties available for sale, showing a clear interest in high-end rentals.
Marrakech is not just about traditional charm; it's also about modern luxury. The city is investing heavily in luxury hotel and resort developments. For instance, there are nine golf resorts, including Al Maaden and Royal Golf, specifically targeting the luxury market. This investment is further boosting the demand for upscale accommodations.
With these developments, Marrakech is positioning itself as a top destination for luxury tourism. The combination of cultural allure and modern luxury is attracting more high-end travelers. This is a key factor in the rising rental prices.
As Marrakech continues to grow as a luxury destination, the demand for high-end accommodations is expected to remain strong. This trend is likely to keep pushing rental prices upward, making it an attractive market for property investors.
Sources: Euronews, Hespress, Kensington Morocco
2) Favorable exchange rates will boost European interest in Marrakech properties
European buyers are increasingly eyeing Marrakech for property investments, thanks to favorable exchange rates.
When the Euro is strong against the Moroccan Dirham, Europeans get more value for their money, making Marrakech properties more affordable. For instance, in April 2023, the exchange rate hit a high of 11.245 MAD per Euro, a sweet spot for European buyers. During this time, real estate agents in Marrakech noticed a surge in inquiries from Europe, as buyers were eager to capitalize on these rates.
European buyers often cite exchange rates as a key factor in their decision to invest abroad. When the rates are in their favor, Marrakech properties become even more enticing, leading to a spike in interest and investment from Europe.
Beyond just numbers, the allure of Marrakech includes its vibrant culture, stunning architecture, and warm climate, which are all significant draws for European investors. The city offers a unique blend of traditional Moroccan charm and modern amenities, making it a desirable location for those looking to invest in a second home or rental property.
Real estate agents in Marrakech have observed that European buyers are particularly interested in properties that offer a mix of luxury and authenticity. From riads in the medina to modern villas in the Palmeraie, there's something for every taste and budget.
As the Euro continues to perform well against the Dirham, it's expected that European interest in Marrakech will keep growing, further boosting the local real estate market.
Sources: EUR to MAD Exchange Rate History, Understanding Currency in Marrakech, How to Buy Real Estate in Morocco
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) Central Marrakech will see higher rental yields as short-term rentals gain popularity among tourists
Rental yields in central Marrakech are set to rise as short-term rentals gain popularity among tourists.
With tourist arrivals hitting 15.9 million by late November 2024, the city is buzzing more than ever. This surge means more people are looking for places to stay, especially in hotspots like Jemaa el-Fnaa and the Medina. These areas are not just tourist attractions; they're the heart of Marrakech, offering a unique blend of culture and history that visitors crave.
Platforms like Airbnb and Booking.com are seeing a boom, with Marrakech boasting a median occupancy rate of 63%. Tourists are increasingly opting for short-term rentals to soak in the local vibe, steering clear of the usual hotel experience. By September 2024, active Airbnb listings in Marrakech shot up to 7,965, a clear sign of this growing trend.
Short-term rentals are not just popular; they're outperforming long-term leases. A typical short-term rental in Marrakech is booked for 230 nights a year, which means more money in the pockets of property owners. This high occupancy is a goldmine for investors, as short-term rentals can bring in double the monthly cash flow compared to traditional rentals.
For those considering investing in Marrakech, the numbers speak for themselves. The city's vibrant culture, coupled with the rising demand for short-term stays, makes it a lucrative market. Property owners are finding that short-term rentals offer not just higher returns but also a chance to be part of Marrakech's dynamic tourism scene.
Sources: Argophilia, Airbtics
4) Affordable housing initiatives will impact property prices in specific neighborhoods
The Moroccan government is making big moves to boost affordable housing, which will likely shake up property prices in some areas.
In 2023 and 2024, they kicked off a national program to build around 120,000 housing units across the country. This plan is all about improving living conditions, especially in slum areas, by offering financial help for housing.
The financial support is pretty solid. The government chips in up to 110,000 dirhams per unit for social housing deals made before the end of 2020, and 60,000 dirhams for others. Plus, the Ministry of National Territory Preparation, Urban Planning, and Housing adds 40,000 dirhams per unit, while beneficiaries put in 100,000 dirhams. This setup is key to making homes more affordable for many families.
Demand for affordable housing is climbing, thanks to Morocco's urban population, which hit an urbanization rate of over 65% in 2023. This growing demand, along with government efforts, is set to impact property prices in areas like Gueliz, Medina, and Hivernage. These neighborhoods are also seeing infrastructure upgrades and foreign investments.
In Gueliz, for example, new roads and public transport options are popping up, making it a hot spot for both locals and investors. Meanwhile, Medina's charm and historical significance continue to attract interest, potentially driving up property values.
Hivernage is not left out either, with its blend of modern amenities and traditional Moroccan culture, making it a desirable location. These factors, combined with government initiatives, are likely to influence property prices in these neighborhoods.
Sources: Fes News, Marrakech Price Forecasts, Statista
5) Co-living spaces will draw younger buyers seeking community-focused living
The trend of co-living spaces is booming, especially among younger buyers seeking community-oriented living.
In recent years, the global co-living market has seen a remarkable surge, with its value jumping from USD 1997.31 million in 2023 to a projected USD 10743.58 million by 2030. This growth highlights a rising demand for affordable housing, particularly in cities like Marrakech, where the housing crisis is severe. Younger demographics are increasingly drawn to these spaces as they offer a sense of community and shared experiences.
In the UK, the number of co-living homes has increased fivefold since 2019, reflecting a shift towards higher density living arrangements. This trend is driven by Millennials and Gen Z, who have a strong preference for community living, with 72% of co-living tenants aged between 26 and 40. These spaces not only meet the demand for affordable housing but also offer continuous demand and potentially higher revenue for investors.
The rise of remote work and digital nomadism has further fueled the demand for flexible housing solutions like co-living spaces. These spaces provide the flexibility and community spirit that younger renters crave, without the burden of long-term commitments. The affordability crisis in traditional housing markets has pushed younger buyers to explore alternative housing solutions, making co-living an attractive option.
In cities like Marrakech, where the housing crisis is particularly acute, co-living offers a viable solution for younger buyers. The community-oriented nature of these spaces appeals to those seeking a sense of belonging and shared experiences. As the demand for affordable housing continues to rise, co-living spaces are becoming an increasingly popular choice for younger generations.
With the growing popularity of co-living spaces, younger buyers are finding new opportunities for community-oriented living. This trend is expected to continue as more people seek affordable and flexible housing solutions. The rise of co-living spaces is not just a trend; it's a response to the changing needs and preferences of younger generations.
Sources: Co-Living Market Insights, Housing in Marrakech, The Rise of Co-Living Spaces, The Co-Living Report 2024
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6) Hivernage will keep attracting high-end buyers for its luxury hotels and vibrant nightlife
The Hivernage district in Marrakech is a hotspot for high-end property buyers thanks to its closeness to luxury hotels and lively nightlife.
Property prices here have been climbing, driven by a growing demand for luxury homes and the area's ongoing transformation. This upward trend is expected to persist, with prices potentially rising by 3% to 7% in 2025, spurred by tourism growth and new transport links.
Significant investments are pouring into luxury hotel developments, like the upcoming Ascott Hivernage Marrakech and The Unlimited Collection Hotel Marrakech, both set to open by the end of 2026. These new hotels will introduce 190 fully-furnished units, catering to affluent travelers and boosting the district's luxury vibe.
Tourism in Marrakech is booming, with nearly 16 million visitors expected by the end of 2024, marking a 20% increase from 2023. This surge is projected to continue, with 17.5 million international arrivals anticipated by the end of the year and 26 million by 2030.
Hivernage's prime location near major attractions like Jemaa el-Fna Square and the Koutoubia Mosque makes it a top choice for tourists seeking luxury stays, further enhancing its allure to wealthy property buyers.
Sources: Ascott Hivernage Marrakech and The Unlimited Collection Hotel Marrakech, Best Luxury Hotels In Hivernage, Morocco Tourism Surges Toward Record Growth, Will Property Prices Increase in Marrakech in 2025?
7) Environmental initiatives will boost the appeal of properties in the Ménara district
Environmental initiatives are transforming the Ménara district, making it a hot spot for property buyers.
The Marrakech Sustainable City Project, launched in 2023, is a game-changer. It's all about sustainable urban development, focusing on biodiversity, sustainable mobility, waste management, and energy efficiency. These efforts are turning the district into a magnet for those looking to invest in eco-friendly properties.
In a big move, the Moroccan government rolled out a $1.5 billion climate fund to boost green infrastructure. This fund is modernizing the electricity grid and expanding renewable energy sources, which is a big plus for property values in Ménara. Homes with renewable energy features are seeing a bump in value, tapping into the trend of sustainable living.
The Ménara district is also becoming a hub for eco-friendly businesses. Take the Terres des Etoiles ecolodge, for example. They use photovoltaic solar panels and have a solid waste management system. These businesses are not just sustainable; they're drawing in buyers who care about the environment.
Media coverage is playing a role too. There's a lot of buzz about the benefits of green spaces and sustainability, which is boosting the district's appeal. People are more aware and interested in living in areas that prioritize the environment.
All these factors are making the Ménara district a prime spot for those looking to invest in properties that are both valuable and environmentally friendly.
Sources: Visit Marrakech, Walaw Press, UNESCO
8) Infrastructure upgrades in Sidi Youssef Ben Ali will boost its appeal to buyers
The Sidi Youssef Ben Ali area is catching the eye of potential property buyers due to some impressive infrastructure upgrades.
In 2023 and 2024, the Moroccan government decided to pour a whopping MAD340 billion into public projects, with a good chunk aimed at Sidi Youssef Ben Ali. This investment is not just about sprucing up the place; it's also about making it more resilient to natural events like earthquakes.
One of the standout improvements is the new roads and transportation links. These have really opened up the area, making it much easier to get in and out of Sidi Youssef Ben Ali. For anyone thinking about buying property, this kind of accessibility is a big plus, whether you're planning to live there or set up a business.
Thanks to these infrastructure upgrades, property values in Sidi Youssef Ben Ali are on the rise. The luxury real estate market in Marrakech, which includes this area, is seeing a lot of interest, especially from international buyers. They're on the hunt for unique and high-end properties, and Sidi Youssef Ben Ali is delivering.
This trend is likely to keep going strong as new luxury developments pop up, catering to the growing demand for premium housing. It's a good time to keep an eye on this area if you're in the market for something special.
Sources: Ecofin Agency, Trade.gov, Marrakech Price Forecasts
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) Eco-friendly homes will gain popularity as environmental awareness grows
Eco-friendly homes are gaining traction as people become more environmentally conscious.
In Marrakech, the Marrakech Sustainable City Project launched in 2023 is a shining example of this trend. This initiative is all about sustainable urban development, focusing on areas like biodiversity, waste management, and energy efficiency. It's not just a project; it's a movement that's reshaping how cities can grow while respecting the planet.
Morocco is at the forefront of green building trends, with cities like Marrakech and Rabat leading the charge. They're using innovative techniques to reduce environmental impact, and the demand for sustainable building materials is on the rise. This surge is fueled by the government's commitment to sustainable building practices and infrastructure development, setting the stage for a greener future.
People's preferences are shifting towards eco-friendly homes, as highlighted by the 2024 NAR Sustainability Report. Nearly half of the respondents noted their clients' interest in sustainability, showing a broader societal shift towards eco-conscious living. Real estate listings are now emphasizing eco-friendly features, which are becoming a major draw for buyers who care about the environment.
Social media and media coverage are playing a big role in spreading the word about eco-friendly homes. Projects like the Marrakech Sustainable City Project are getting a lot of attention, showcasing the benefits of sustainable practices. Government incentives and local initiatives, such as Les Jardin Des Medina, are also making waves, offering a glimpse into the future of eco-conscious architecture.
As more people become aware of the environmental impact of their choices, the popularity of eco-friendly homes is set to rise. This trend is not just about saving the planet; it's about creating a better quality of life for everyone. With the right support and awareness, eco-friendly homes could become the norm rather than the exception.
Sources: Constructive Voices, UNESCO, NAR Realtor, 6Wresearch, I Love Marrakech
10) Ménara district will emerge as a hub for eco-friendly projects with new green initiatives
The Ménara district is set to become a hub for eco-friendly developments.
Thanks to the Moroccan government's push for sustainable building, the area is seeing a rise in green projects. Their National Sustainable Construction Strategy promotes using eco-friendly materials like adobe bricks, which are not only good for the environment but also easy on the wallet. This initiative is making waves in the construction industry, drawing attention to the district's potential for sustainable growth.
Morocco's commitment to the environment is evident in its impressive ranking as the 8th highest climate performer in the Climate Change Performance Index. The country is on a mission to boost its renewable energy capacity, aiming for 52% by 2030 and 80% by 2050. This ambitious plan is a big step towards reducing carbon emissions and is likely to attract eco-conscious investors to the Ménara district.
The Marrakech Sustainable City Project, launched in 2023, is another key factor drawing attention to Ménara. This project is all about creating a city that's integrated, resilient, and sustainable. It's bringing together a diverse group of stakeholders, from government bodies to private developers, all focused on making the district a model of green urban living. The buzz around this project is putting Ménara on the map as a leader in eco-friendly initiatives.
With the media spotlight on these developments, the Ménara district is gaining a reputation as a center for green innovation. This attention is not just local; it's catching the eye of international investors looking for sustainable opportunities. The district's transformation is a testament to Morocco's broader environmental goals and its dedication to creating a sustainable future.
Sources: 6Wresearch, Climate Change Performance Index, UNESCO
11) Virtual reality tours will become widespread, enabling international buyers to view properties remotely
Virtual reality tours are becoming a staple for international property buyers who want to explore homes from afar.
In recent years, the global embrace of VR in real estate has skyrocketed. By 2023, the virtual tourism market was valued at $10.52 billion, with expectations to hit $12.38 billion by 2024. Real estate firms are jumping on this trend, using VR and AR to create immersive tours that let you walk through luxury homes without leaving your couch.
Take Marrakech, for example. This city is a hotspot for international buyers, thanks to its unique properties and lively vibe. Real estate agencies here, like Cad Design Maroc and Kensington Morocco, are offering 360° virtual tours and high-def options, making it a breeze for buyers worldwide to check out properties.
What's driving this shift? VR technology is now more accessible and affordable than ever. This means you can explore homes in ultra-realistic virtual settings, which is a big draw for tech-savvy buyers who love the convenience and immersive feel of VR tours.
In Marrakech, the demand from international buyers is strong, and VR tours are a game-changer. Companies like Cad Design Maroc and Kensington Morocco are leading the way, offering cutting-edge virtual experiences that make remote property viewing a reality.
As VR tech continues to evolve, expect even more innovations that will make buying property from another country easier and more exciting. Virtual reality tours are here to stay, transforming the way we buy homes.
Sources: GlobeNewswire, Cad Design Maroc, Kensington Morocco
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12) Property interest in Sidi Youssef Ben Ali will grow as infrastructure improvements enhance accessibility
The Moroccan government is making big strides in infrastructure, especially in Sidi Youssef Ben Ali.
With new roads and public transport links, including tram line extensions, Sidi Youssef Ben Ali is becoming more connected to Marrakech. This is part of a larger urban development plan that aims to increase the area's value. As property prices rise in places like Gueliz and Medina, more people are looking at Sidi Youssef Ben Ali as a more affordable option.
The Marrakech Sustainable City Project is also playing a role in this transformation. It focuses on creating a more integrated and eco-friendly urban environment in Sidi Youssef Ben Ali. This aligns with the growing demand for sustainable living, making the area even more appealing.
As these projects progress, interest in Sidi Youssef Ben Ali is expected to grow. The improved infrastructure not only makes it easier to get around but also enhances the overall quality of life. This is attracting both residents and investors who are keen on the area's potential.
With these changes, Sidi Youssef Ben Ali is set to become a hotspot for property interest. The combination of better accessibility and sustainable living options is a winning formula for the area's future growth.
Sources: Marrakech Price Forecasts, Marrakech Sustainable City Project, Morocco Infrastructure
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.