Buying property in Marrakech: is it worth it?

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

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Marrakech. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Moroccan real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Marrakech, Casablanca, and Rabat. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current average price per square meter in Marrakech across different areas?

Marrakech property prices vary dramatically by location, with prime areas commanding premiums of up to 275% over suburban zones as of September 2025.

City center apartments in prestigious districts like Gueliz and Hivernage currently trade between 13,000-16,178 MAD per square meter (€1,200-€1,500/m²). These areas offer the best access to amenities, restaurants, and business districts, justifying their premium pricing.

Luxury villas in the exclusive Palmeraie district represent the market's top tier at 25,000-30,000 MAD per square meter (€2,200-€2,700/m²). Some exceptional properties in this zone exceed 30,000 MAD/m², driven by their resort-style amenities, large plots, and proximity to high-end hotels and golf courses.

Traditional riads in the historic Medina typically cost 12,000-15,000 MAD per square meter, though complete riad properties often sell for 1.5-5.4 million MAD depending on size, condition, and exact location within the old city walls.

Secondary areas like Agdal and Targa offer more accessible entry points at 8,000-12,000 MAD per square meter, while outlying emerging neighborhoods provide the most affordable options with significant appreciation potential. Investment land in peripheral zones starts around 6,000-9,000 MAD per square meter, though Palmeraie land commands substantially higher prices.

How do short-term trends in property prices compare to medium-term and long-term projections?

Marrakech property market has transitioned from explosive post-pandemic growth to more sustainable appreciation rates, with current trends indicating healthy but moderated price increases through 2028.

Short-term price movements over the past 12 months show citywide growth of 3-7% annually as of September 2025. The luxury segment significantly outperformed this average, with villas experiencing the fastest gains of 12-15%, particularly in the Palmeraie district where international demand remains strong.

Medium to long-term projections through 2028 suggest the market is moderating from the exceptional 20% growth seen in 2024. Industry forecasts point to sustainable annual increases of 3-7%, supported by ongoing infrastructure development, consistent foreign buyer interest, and Morocco's growing tourism sector.

This moderation reflects market maturation rather than weakness, as Marrakech transitions from a recovery phase to steady growth. The city's fundamentals—tourism infrastructure, international connectivity, and government investment in development projects—support continued appreciation at more sustainable rates.

Investors should expect the explosive gains of 2024 to normalize, but sustained growth driven by structural factors rather than speculative demand. It's something we develop in our Morocco property pack.

Which neighborhoods are seeing the fastest price growth, and which are stagnating?

Marrakech's property market shows clear winners and laggards, with emerging districts and luxury zones leading appreciation while peripheral areas lag behind.

Targa, Agdal, and Sidi Ghanem are experiencing the fastest price growth due to major infrastructure upgrades and new development projects. These areas benefit from improved road access, new commercial centers, and planned residential developments that attract both local and international buyers.

The Palmeraie district continues strong appreciation in the luxury villa segment, driven by its established reputation as Morocco's premier residential destination. Hivernage also shows robust growth due to its proximity to new hotel projects and central location near the Medina.

Stagnating areas include older, less developed neighborhoods on the city's periphery that lack infrastructure investment or clear development plans. Properties in these outlying districts show minimal price appreciation, with some houses in less central areas actually underperforming the broader market.

The disparity reflects Marrakech's development pattern, where growth follows infrastructure and amenities. Neighborhoods with planned improvements or existing high-quality infrastructure attract investment and price growth, while areas lacking these fundamentals remain flat.

How do prices differ between riads, apartments, and villas?

Property Type	Central/Prime Price (MAD/m²)	Suburban Price (MAD/m²)	Annual Price Growth
Apartments	13,000-16,178	8,000-12,000	2-3%
Villas	25,000-30,000	8,000-12,000	11-15%
Riads (Medina)	12,000-15,000	N/A	3-8%
Luxury Villas (Palmeraie)	25,000-30,000+	N/A	12-15%
Modern Apartments (Gueliz)	14,000-16,178	N/A	2-4%
Investment Properties	Varies	6,000-9,000	5-10%
Renovated Riads	15,000-18,000	N/A	5-8%

What are the average rental yields right now, and how do they vary by property type and location?

Marrakech delivers strong rental returns across property types, with the overall city average reaching 7.08% gross rental yield as of September 2025.

Short-term vacation rentals through platforms like Airbnb generate the highest yields at 8-12%, with prime locations in Gueliz, Hivernage, Palmeraie, and the historic Medina commanding top rates. These properties benefit from Marrakech's strong tourism sector and year-round international visitor demand.

Long-term residential rentals typically produce 6-7% gross yields, with the best performance from well-located modern apartments and newer suburban villas. These properties attract both expatriate residents and affluent local tenants seeking quality housing.

Property-specific yields show villas in the Palmeraie achieving 8-12%, modern city center apartments generating 6-9%, and traditional Medina riads producing 6-8%. Investment properties along development corridors like Route de l'Ourika can reach 10-14% due to their lower acquisition costs and growing rental demand.

The yield advantage for short-term rentals comes with higher management requirements and seasonal fluctuations, while long-term rentals offer more predictable income streams with lower vacancy risk.

What is the typical occupancy rate for short-term rentals like Airbnb versus long-term rentals?

Marrakech's rental market shows strong occupancy across both short-term and long-term segments, with short-term properties averaging 64% occupancy citywide.

Short-term rentals experience significant seasonal variation, with peak season occupancy exceeding 75% during March and April when weather conditions are optimal and international tourism peaks. The shoulder seasons maintain reasonable occupancy, while summer months see reduced demand due to extreme heat.

Long-term rental properties maintain much higher occupancy rates above 85%, particularly for well-located two and three-bedroom apartments in city center areas. This segment benefits from steady demand from expatriate professionals, long-term tourists, and affluent locals seeking quality housing.

The 64% average for short-term rentals translates to approximately 234 occupied nights per year, which supports the higher nightly rates these properties command. However, owners must factor in higher turnover costs, cleaning, management fees, and seasonal income fluctuations.

Competition among short-term rentals has intensified as supply increased, making location, property quality, and professional management increasingly important for maintaining high occupancy rates.

How long does it usually take to resell a property, and at what resale margin, depending on the area?

Marrakech properties currently spend an average of 33 days on the market, with well-priced properties in desirable locations selling faster than the market average.

Properties priced at fair market value based on recent comparable sales typically sell within 3-5 weeks. Premium properties in the Palmeraie or prime Gueliz locations may take 6-8 weeks due to their higher price points and smaller buyer pool, while underpriced properties in emerging areas can sell within 2-3 weeks.

Resale margins vary significantly by area and property improvements. Emerging neighborhoods and renovated riads or villas in sought-after zones offer the best flip potential, with realistic gross resale margins of 10-15% in the current market environment.

The strongest resale performance comes from properties where buyers have added value through renovations, particularly traditional riads that have been modernized while preserving their authentic character. Luxury villas with upgraded amenities also command premium resale prices.

Market liquidity has improved compared to pre-2024 levels, with increased international buyer interest and better financing options supporting faster transaction times. However, overpriced properties can languish on the market for several months, emphasizing the importance of realistic pricing strategies.

What additional costs should buyers expect—such as taxes, notary fees, and renovation expenses?

Property buyers in Marrakech should budget 7-12% of the purchase price for additional acquisition costs, with renovation expenses potentially adding significant amounts depending on property condition.

1. **Notary fees**: 0.5-1.5% of property value for legal documentation and transaction processing2. **Registration fees**: 4-6% covering official property registration with authorities 3. **Land registry costs**: 1% for title registration and official record keeping4. **Real estate agent commission**: 2-3% typically paid by the seller but factored into pricing5. **Legal verification and due diligence**: 0.5-1% for proper title and legal clearance checks

Renovation costs for traditional riads requiring full updating range from 2,500-6,000 MAD per square meter, depending on the quality of finishes and materials selected. Properties in good condition may only need 500-1,500 MAD/m² for cosmetic improvements.

Ongoing annual costs include property taxes, which vary based on property value and location, and rental income tax obligations for investors. Foreign owners must ensure proper tax compliance to maintain their investment legal status.

Buyers should also budget for currency exchange costs and bank fees associated with transferring funds through Moroccan banking channels, as required by foreign ownership regulations. It's something we develop in our Morocco property pack.

How does foreign ownership regulation affect buying and reselling in Marrakech?

Foreign nationals can freely purchase residential properties in Marrakech, including riads and villas, but cannot directly buy agricultural land under Moroccan law.

All foreign property purchases must be funded through convertible MAD transferred via Moroccan banking institutions. Buyers need to maintain proper documentation of fund sources and transfers to ensure legal compliance and future repatriation rights.

Foreign owners who properly register their investment can repatriate sales proceeds when reselling, provided they maintained correct documentation throughout ownership. This registration process must be completed during the initial purchase to preserve exit rights.

Residency status is not required for property ownership, but buyers must navigate Morocco's banking and legal systems for transactions. Professional legal assistance is highly recommended to ensure proper title verification and regulatory compliance.

The regulatory framework supports foreign investment while protecting Morocco's agricultural sector. Residential property ownership rights are well-established, with many international buyers successfully purchasing, owning, and reselling properties in Marrakech's market.

What budget range makes sense today if your goal is living there versus renting out versus flipping later?

Budget requirements vary significantly based on investment strategy, with lifestyle buyers needing different financial resources than rental investors or property flippers.

Lifestyle buyers seeking quality living should budget 2-4 million MAD for purchase (€180,000-€360,000), or 5,000-12,000 MAD monthly for rental accommodation. This range provides access to well-located apartments in Gueliz or Hivernage with modern amenities and convenient access to expatriate communities.

Rental investors should target well-situated properties with strong yield potential, budgeting 1.2-2.5 million MAD for productive apartments or 3-8 million MAD for high-yielding villas. These properties generate 6-12% annual returns depending on management approach and location selection.

Property flippers and value-add investors need flexible budgets accommodating renovation costs, typically planning project budgets with 20-30% cushions for construction and transaction costs. Medina riads and emerging district properties offer the best flip potential but require renovation expertise.

All buyers should maintain additional reserves for unexpected costs, legal fees, and market timing flexibility. Successful investors often start with smaller properties to gain market experience before making larger commitments.

Which areas are best positioned for lifestyle buyers, rental investors, or speculative buyers?

Marrakech's diverse neighborhoods serve different investment strategies, with clear geographic preferences emerging for each buyer type as of September 2025.

Lifestyle buyers seeking comfort and convenience should focus on Hivernage, Gueliz, and select Palmeraie properties. These areas offer established amenities, international restaurants, modern infrastructure, and proximity to expatriate communities, making daily life comfortable for foreign residents.

Rental investors achieve optimal returns in Gueliz, Medina, parts of Palmeraie, and well-connected Agdal properties. These locations maximize tourist flow for short-term rentals while providing strong long-term rental demand from business travelers and expatriate residents.

Speculative buyers and property flippers should target Targa, Sidi Ghanem, Route de l'Ourika corridor, and renovation opportunities in the Medina. These areas offer the highest appreciation potential due to infrastructure development, emerging commercial activity, and value-add opportunities through renovation projects.

Each strategy requires different risk tolerances and management capabilities. Lifestyle purchases prioritize immediate livability, rental investments need ongoing management systems, and speculative plays require market timing and renovation expertise for maximum returns.

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.

If you decide to buy now, what's the smartest positioning in terms of property type, location, and budget?

Smart positioning in Marrakech's September 2025 market requires matching property characteristics to current opportunities while maintaining flexibility for changing conditions.

Property type selection should prioritize apartments or riads for rental income and flip potential, while villas offer the best high-value appreciation and personal use flexibility. Modern apartments provide easier management and broader tenant appeal, while riads offer unique character but require more specialized knowledge.

Location strategy should balance established value in Gueliz and Hivernage against rapid growth potential in Targa, Agdal, and Sidi Ghanem. Established areas provide immediate rental income and resale liquidity, while emerging districts offer superior capital appreciation potential.

Optimal budget ranges include 1.3-2.7 million MAD for quality apartments with good rental potential, and 2-6 million MAD for decent riads or villas in growth areas. This positioning provides access to properties with both income generation and appreciation potential.

Smart buyers should seek properties featuring rooftop terraces and outdoor spaces, which command rental premiums and resale advantages. Properties in areas slated for future infrastructure investment offer maximum upside potential as development progresses.

Success requires focusing on legal compliance through proper title verification, tax registration, and regulatory adherence, while factoring total costs including acquisition, renovation, and transaction expenses into investment calculations. 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.

Sources

1. Marrakech Price Forecasts - Sands of Wealth
2. Marrakech Real Estate Market Trends - Sands of Wealth
3. Marrakech Property - Sands of Wealth
4. Morocco Real Estate Forecasts - Sands of Wealth
5. Morocco Analysis - Aparthotel
6. Marrakesh House Prices - Properstar
7. Morocco Rental Yields - Global Property Guide
8. Airbnb Revenue Marrakech - Airbtics
9. Short vs Long Term Rentals 2025 - Radarr Africa
10. Morocco Real Estate Market Shifts - LinkedIn