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Everything you need to know before buying real estate is included in our Morocco Property Pack
Morocco's property market is showing steady growth with prices rising 3-7% annually in major cities.
Property values in Casablanca, Rabat, and Marrakech are driven by strong foreign investment flows, infrastructure development, and tourism demand, though affordability remains a challenge for local buyers.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.
Morocco's property market continues to show positive growth with annual price increases of 3-7% in main cities, driven by foreign investment that rose over 55% year-on-year in 2024-2025.
Current apartment prices range from 8,000-27,000 MAD/m² depending on location, with rental yields of 5-8% making Morocco attractive for property investors.
| Market Indicator | Current Status (Sept 2025) | Forecast/Trend |
|---|---|---|
| Annual Price Growth | 3-7% in major cities | Expected to continue at 3-6% through 2029 |
| Foreign Investment | +55% year-on-year increase | Strong continued demand from Europe and Gulf states |
| Mortgage Rates | 4-5.5% average | Stable with slight downward pressure |
| Rental Yields | 5-8% gross yields | Sustained by high rental demand |
| Construction Activity | Slowdown since 2022 | Government subsidies supporting new projects |
| Price per m² Range | 8,000-27,000 MAD/m² | Continued premium in luxury districts |
How fast are property prices in Morocco rising or falling on average each year, and by what percentage in the main cities like Casablanca, Rabat, and Marrakech?
Property prices in Morocco are currently rising at an annual rate of 3-7% across the country, with the main urban centers showing the strongest performance.
Casablanca leads the growth with residential prices increasing 4-7% annually, particularly in luxury districts like Anfa, Ain Diab, and Californie that far outpace mid-market areas. However, as of Q1 2025, nominal growth slowed to just 0.24% year-on-year, and when adjusted for inflation, prices actually fell by 1.34%.
Marrakech shows robust tourism-driven growth with price increases of 5-8% in sought-after neighborhoods, especially for furnished investment properties that benefit from short-term rental demand. The city's appeal to international buyers continues to drive premium pricing in prime locations.
Rabat experiences more moderate growth in the 4-6% range, with increases concentrated in upscale districts that house government officials and diplomatic personnel. The capital's stable employment base supports consistent demand for quality housing.
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What is the current average price per square meter for apartments and houses in Morocco, and how does it compare to five years ago?
| City | Current Price Range (MAD/m²) | USD Equivalent |
|---|---|---|
| Casablanca (New/Luxury) | 6,000-27,000 | $600-2,700/m² |
| Casablanca (Mid-range) | 15,000-22,000 | $1,500-2,200/m² |
| Rabat (Median) | 15,000-16,000 | $1,518/m² |
| Marrakech (Prime zones) | 8,000-9,000 | $788/m² |
| Luxury Villas | 25,000+ | $2,500+/m² |
How many new housing units are being built annually in Morocco, and is construction activity accelerating or slowing down?
Construction activity in Morocco has shown a significant slowdown since 2022, with new housing starts declining from previous peak years.
In 2022, leading regions like Fès-Meknès initiated construction of 30,339 units, while less active regions started fewer than 7,000 units annually. This represents a considerable decrease from the massive government-subsidized housing push that produced over 1.9 million homes between 2010 and 2020.
The current construction landscape reflects a shift from the large-scale social housing programs of the previous decade to more targeted, quality-focused developments. Government initiatives and eco-city projects continue to drive some development, but progress remains uneven across different regions.
Private developers are increasingly focusing on higher-end projects in major cities rather than volume construction, which explains the concentration of new supply in premium segments where foreign investment is strongest.
What is the current mortgage interest rate in Morocco, and how has it changed over the past three years?
Current mortgage interest rates in Morocco average 4-5.5%, representing a slight decrease from levels three years ago when typical rates ranged between 5-6%.
This downward trend reflects stable monetary policy by Bank Al-Maghrib and increased competition among Moroccan banks for retail mortgage clients. Major banks like Attijariwafa Bank, BMCE Bank, and Banque Populaire have been offering more competitive rates to attract creditworthy borrowers.
The rate environment has benefited from Morocco's relatively stable inflation and the central bank's measured approach to monetary policy. However, rates can vary significantly based on borrower profile, down payment amount, and loan term, with premium borrowers securing rates at the lower end of the range.
Foreign buyers often face slightly higher rates or additional requirements, but established international banks operating in Morocco can offer competitive packages for qualified expatriate and non-resident purchasers.
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How affordable is real estate in Morocco compared to average household income, and what percentage of income typically goes toward housing costs?
Real estate affordability in Morocco presents significant challenges, with average households spending 35-45% of their income on housing costs.
This percentage far exceeds international recommendations of 25-30% of income for housing, indicating that property prices have outpaced wage growth in major urban centers. Middle-class and lower-income families find affordability particularly stretched in cities like Casablanca and Rabat.
The affordability crisis is most acute for first-time buyers seeking to purchase apartments in desirable neighborhoods, where entry prices often require household incomes well above the national median. Young professionals frequently rely on family assistance or extended mortgage terms to afford property purchases.
Rural and secondary city markets offer better affordability ratios, but limited employment opportunities and infrastructure development make these areas less attractive for most buyers seeking long-term value appreciation.
How high is rental demand in Morocco's major cities, and what are the average gross rental yields landlords can expect today?
Rental demand in Morocco's major cities remains consistently high, driven by urbanization, tourism growth, expatriate workers, and young professionals seeking flexibility.
Gross rental yields for apartments typically range 5-8%, with the best returns found in tourist quarters and expatriate-favored neighborhoods. Properties in Marrakech's medina and Gueliz areas, Casablanca's business districts, and Rabat's diplomatic zones command premium rents.
Luxury properties tend to show slightly lower yields due to higher purchase prices, but they often attract longer-term, higher-quality tenants who provide stable income streams. Short-term rental properties in tourist areas can achieve higher yields but require more active management.
Rental demand is particularly strong for furnished apartments, modern amenities, and properties with parking, as these features remain scarce in many traditional neighborhoods while being highly sought after by international and affluent local tenants.
How much foreign investment is currently flowing into Moroccan real estate, and which nationalities are the most active buyers?
Foreign real estate investment in Morocco climbed by over 55% year-on-year between 2024-2025, representing one of the strongest growth periods for international buyer activity.
The most active foreign buyers come from France, Spain, Gulf states (particularly UAE and Saudi Arabia), Belgium, and the UK. Each nationality tends to focus on different property types and locations based on their investment goals and cultural preferences.
Europeans, especially French and Spanish buyers, typically focus on lifestyle apartments and coastal properties in cities like Marrakech, Essaouira, and Tangier. They're often seeking second homes or retirement properties with good connections to their home countries.
Gulf state investors target luxury villas and new developments, often viewing Moroccan real estate as a stable alternative to more volatile regional markets. British buyers have increased activity following favorable exchange rate movements and Brexit-related relocations.
It's something we develop in our Morocco property pack.
How many property transactions are completed each quarter across the country, and what trends are visible in sales volumes?
Morocco completes tens of thousands of property transactions each quarter, with sales volumes stabilizing after a brief post-pandemic surge during 2021-2022.
Transaction volumes show a slight uptick in 2025 alongside increased investor interest, particularly in the luxury segment where foreign buyers remain active. The market has normalized from the unusual patterns seen during COVID-19 when both domestic and international travel restrictions affected buying behavior.
Seasonal patterns remain evident, with higher transaction volumes during spring and fall months when weather conditions favor property viewing and when many international buyers visit Morocco. Summer months typically see slower activity due to heat and Ramadan scheduling effects.
The transaction mix has shifted toward higher-value properties, reflecting both price appreciation and the increased presence of affluent foreign buyers who tend to purchase more expensive properties than typical domestic buyers.
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.
How do regional differences look in Morocco—what are the fastest growing cities or regions in terms of property values?
Regional growth differences in Morocco show clear leaders, with Casablanca, Marrakech, Tangier, and Mohammedia experiencing the fastest property value appreciation.
Casablanca leads as Morocco's business hub, with consistent demand from domestic and international companies establishing operations. The city's financial district and new developments attract premium pricing, while its port and industrial activities support employment-driven housing demand.
Marrakech benefits from its tourism appeal and international lifestyle buyer interest, particularly in the medina restoration projects and modern developments in Gueliz and Hivernage. Short-term rental potential adds investment appeal beyond traditional residential demand.
Tangier has emerged as a coastal investment destination, benefiting from port development, improved infrastructure connections to Europe, and industrial zone expansion. The city offers a compelling combination of lifestyle appeal and economic growth prospects.
Mohammedia attracts buyers seeking more affordable alternatives to Casablanca while maintaining reasonable commuting distance, making it popular among young professionals and families seeking value.
What impact are government policies, taxes, or subsidies having on the Moroccan real estate market today?
Government policies are providing significant market support through tax incentives, housing subsidies, and the 2025 Finance Bill provisions that boost both supply and investor confidence.
Social housing programs continue to address affordability challenges for lower and middle-income families, though progress remains uneven across different regions. These programs help support overall construction activity and provide alternatives to private market housing.
Eco-city initiatives and sustainable development projects receive government backing, creating new supply in planned communities with modern infrastructure. These developments often attract international buyers seeking contemporary amenities and environmental features.
Tax policies generally favor real estate investment, with reasonable property taxes and capital gains treatments that don't discourage property ownership or investment. Foreign buyer regulations remain relatively open compared to many other countries, supporting continued international investment flows.
What are the forecasts from major banks or international agencies for property price growth in Morocco over the next five years?
Major banks and international agencies expect annual property price growth of 3-6% over the next five years, with the highest appreciation concentrated in key urban centers and premium developments.
These forecasts assume continued moderate economic growth, stable political conditions, and sustained foreign investment interest in Moroccan real estate. Banks expect Casablanca and Marrakech to lead price appreciation due to their established appeal to international buyers and strong local demand fundamentals.
The forecast range reflects potential risks including inflation volatility, global economic uncertainty, and possible shifts in government support policies that could affect market dynamics. However, Morocco's relatively stable political environment and economic diversification provide a supportive backdrop.
Premium properties and well-located developments are expected to outperform the overall market, while secondary locations may see more modest gains. Infrastructure improvements and new development projects could create localized appreciation opportunities beyond the main cities.
It's something we develop in our Morocco property pack.
How is Morocco's overall economic growth, inflation, and unemployment expected to affect housing demand and real estate prices?
Morocco's economic fundamentals project moderate growth, stable inflation recently under 4%, and persistent unemployment challenges around 11%, creating a mixed environment for housing demand.
Economic growth provides underlying support for real estate demand, but unemployment levels particularly affect younger demographics who represent key first-time buyer cohorts. This dynamic tends to moderate domestic demand while international buyer interest remains less affected by local employment conditions.
Controlled inflation helps maintain purchasing power and mortgage affordability for domestic buyers, while also supporting foreign investment appeal by maintaining relative value compared to other international markets. However, inflation spikes could quickly erode affordability for local buyers.
Continued urbanization trends and infrastructure investment programs are expected to underpin property prices through at least 2029, even if domestic buyer capacity remains constrained. Foreign demand and tourism-related property investment provide additional support independent of local economic conditions.
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.
Morocco's property market shows steady growth with strong foreign investment driving premium segments, while local buyers face affordability challenges.
The combination of 3-7% annual price growth, 5-8% rental yields, and continued international buyer interest makes Morocco an attractive emerging real estate market for 2025 and beyond.
Sources
- Sands of Wealth - Morocco Price Forecasts
- The Global Economy - Morocco Real Residential Property Prices
- Sands of Wealth - Casablanca Price Forecasts
- Global Property Guide - Morocco Price History
- Global Property Guide - Morocco Square Meter Prices
- Properstar - Morocco House Prices
- Statista - Housing Units Initiated in Morocco by Region
- Reall - Morocco Market Systems Initiative