Authored by the expert who managed and guided the team behind the Morocco Property Pack
Everything you need to know before buying real estate is included in our Morocco Property Pack
Why is Morocco emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the flourishing tourism sector, or the competitive pricing compared to other international markets? What are the key benefits for investors?
We frequently encounter these questions because we are actively engaged with developers, real estate agents, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a compelling case for investing in Morocco's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect or want more information, please reach out (we respond very quickly). Your feedback enhances our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
1) With the tech industry booming, urban housing demand is rising in Morocco
Morocco's tech industry has been booming, especially since 2023.
With funding for Moroccan startups jumping from $7.6 million in 2022 to $111.2 million in 2023, there's a clear surge in tech startups. These new companies often need urban housing for their founders and employees, which is driving up demand in city areas.
Foreign investment is a big part of this growth. Take Oracle, for example, which expanded its R&D in Morocco, boosting its local team to 1,000 IT professionals. This kind of investment draws both local and international talent, who usually prefer city life for its amenities and job prospects.
The Moroccan government's "Morocco Digital 2030" strategy is also pushing this trend. By focusing on improving infrastructure and connectivity, more people are moving to urban areas for better opportunities, which in turn increases the demand for city housing.
Tech hubs in cities like Casablanca and Rabat are expanding, with places like Oracle's Morocco Development Center creating more jobs. This attracts professionals to urban areas, increasing the need for housing as they want to be close to work and enjoy the vibrant city life.
Sources: Ecofin Agency, Oracle, OECD
2) The film industry is booming, so properties near filming locations are in high demand
Morocco's film industry is booming, with 1.109 billion dirhams in revenue from foreign film productions in 2023.
Big names like "Gladiator II" and "The Terminal List" have chosen Morocco as their backdrop, and this has sparked a lot of interest in properties near these filming spots. Tourism has surged in these areas, with fans and curious travelers flocking to see where their favorite scenes were shot. This influx of visitors has naturally led to a rise in property prices in these popular filming regions.
Property owners are seeing a nice boost in rental income, thanks to the demand for short-term rentals during filming. Imagine renting out your place to a film crew or tourists eager to catch a glimpse of the action. This demand is pushing property values even higher, making it a potentially lucrative investment.
The Moroccan government is also playing a big role in this boom. They've rolled out a 30% tax rebate for feature films, making Morocco an attractive spot for filmmakers. This incentive has led to partnerships between Moroccan film authorities and international studios, further cementing the country's status as a go-to filming destination.
Local businesses are thriving, and infrastructure around filming sites is getting a boost too. This development is not just good for the film industry but also for property values. As these areas become more developed, property prices continue to appreciate, offering a promising outlook for potential buyers.
So, if you're considering buying property in Morocco, keep an eye on these filming hotspots. The country's film industry is drawing international attention, increasing interest in properties near filming locations. It's an exciting time to invest in these areas, with the potential for great returns.
Sources: Hespress, 7News, Filming in Morocco
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.
3) Morocco’s tax incentives make it a financially smart choice for real estate investors
The Moroccan government is making real estate investment more appealing with attractive tax incentives.
In 2023, they introduced a Finance Law that aims to unify corporate income tax rates by 2026. This law is particularly beneficial for companies investing in tangible fixed assets, as long as they keep them for at least a decade. It's a smart move to encourage long-term investment in the country.
Foreign investors are getting special perks too. They enjoy tax exemptions on VAT for locally acquired fixed assets and reduced tax rates for projects related to tourism, like hotels and vacation homes. This makes Morocco's real estate market especially enticing in tourist hotspots such as Agadir Souss Massa.
New developments are also in for a treat with reduced property taxes. For instance, newly incorporated companies get a business tax break for the first five years. In some acceleration zones, the benefits are even sweeter, with a business tax exemption for the first 15 years and a corporate income tax exemption for the first five years.
These incentives make investing in Moroccan real estate not just profitable but also strategically smart. The government is clearly focused on making the financial landscape as appealing as possible for both local and foreign investors.
Sources: EY Global Tax News, DBS Morocco, Westpoint Residence, Lloyds Bank Trade
4) Morocco’s trade deals with Europe and the US boost its economic outlook
Morocco's free trade agreements with Europe and the US have been a game-changer for its economy, attracting significant foreign direct investment from these regions.
Investors from the US and EU are increasingly confident in Morocco's market, leading to a surge in investments that create jobs and enhance workforce skills. This influx of capital is not just about numbers; it's about real opportunities for Moroccans to develop new skills and improve their livelihoods.
Morocco's exports to the United States have been thriving, reaching $1.25 billion in 2023. Key sectors like fertilizers, electrical equipment, and vehicles are driving this growth, showcasing Morocco's diverse industrial capabilities.
While specific figures for European exports aren't detailed, Morocco's strategic location and favorable trade conditions make it a magnet for European businesses. This positioning allows Morocco to serve as a gateway to Africa, offering European companies a strategic advantage.
Economic growth is evident in Morocco's GDP, which saw a 2.40% increase in the second quarter of 2024. This growth is largely fueled by trade, especially in the non-agricultural sectors like manufacturing and mining, which are vital to the country's economic landscape.
With these trade agreements, Morocco is not just opening its doors to foreign markets but also strengthening its own economic foundation. The benefits are clear: more jobs, better skills, and a robust economy that continues to grow.
Sources: Atlantic Council, Trade.gov, Trading Economics
5) New transport links make remote areas more accessible for you
Morocco is making big moves to improve access to its remote areas by developing new transport links.
The government is putting a lot of money into infrastructure, with plans to invest MAD340 billion ($34.4 billion) in public projects for 2025. This investment focuses heavily on transportation, aiming to connect more people to essential services. One exciting development is the expansion of the highway network, which will grow from 1,800 kilometers to 3,000 kilometers by 2030. This means easier travel between cities and rural areas, opening up opportunities for everyone.
Morocco is also working on a high-speed rail link as part of a $37 billion strategy to connect more cities, ports, and airports by train. The goal is to make rail transport accessible to 87% of the population by 2040. Imagine hopping on a train and reaching your destination faster and more comfortably, whether you're heading to a bustling city or a quiet village.
Public transportation in rural areas is getting a boost too. In 2024, Morocco committed $1.1 billion to enhance its public transport network. This includes adding 3,500 new buses by 2029, which will serve 32 cities, including those in rural regions. These buses will modernize urban management systems and make public transit more efficient, improving daily life for residents.
For those considering buying property in the countryside, these developments mean better access to amenities and a smoother commute. The improved transport links are not just about convenience; they also enhance the quality of life by connecting people to more opportunities and services.
With these investments, Morocco is not only transforming its infrastructure but also paving the way for economic growth and development in its remote areas. The future looks promising for those looking to invest in property, as accessibility continues to improve.
Sources: Ecofin Agency, Carnegie Endowment, AGBI
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6) With heavy government investment in infrastructure, property values are on the rise
The Moroccan government is making massive investments in infrastructure, boosting property values nationwide.
By 2025, they've earmarked MAD340 billion ($34.4 billion) for public projects, focusing on essentials like energy, telecommunications, and transportation. This isn't just about building roads; it's about transforming how people live and connect across the country.
Transportation is a big focus. They're planning to add 2,100 miles of expressways and 1,300 miles of highways by 2030, with a price tag of around $9.6 billion. This means easier travel between major cities and smoother transport of goods, which often leads to rising property values in newly accessible areas.
Coastal regions are also getting a boost with nearly $7.5 billion set aside for new ports and expanding existing ones. This includes deep-water ports and industrial zones, which are magnets for businesses. As these areas become economic hubs, the demand for real estate—and thus property values—tends to climb.
Sources: Ecofin Agency, International Trade Administration, Lloyds Bank Trade
7) With a growing young population, there’s more demand for housing
Morocco's young population is on the rise, with 5.95 million people aged 15 to 24 in 2023.
As more young Moroccans flock to cities, 65.12% of the population now lives in urban areas. This shift is driving up housing demand, especially in bustling cities like Casablanca and Marrakech, where opportunities are abundant.
However, there's a catch: Morocco is grappling with a housing deficit of around 400,000 units. This shortage is particularly felt in the affordable housing sector, which is crucial for young people starting their careers.
Many Moroccans are bracing for a rise in housing costs, as surveys show a majority expect prices to climb. This sentiment reflects the increasing pressure on the housing market, fueled by the youthful demographic surge.
For those considering buying property, it's worth noting that the demand is not just about numbers. The young population is shaping the market, with preferences leaning towards modern amenities and proximity to urban centers.
Investors and developers are taking note, with new projects aiming to cater to this vibrant demographic. The focus is on creating spaces that meet the needs of a dynamic and growing young population.
Sources: Statista, Statista, Reall, Ipsos
8) With a growing middle class, Morocco is seeing increased demand for homes
Morocco's growing middle class is driving a surge in demand for homes.
With urbanization at 65.12% in 2023, more people are moving to cities, looking for new places to live. This urban shift is a big reason why there's more interest in buying homes.
The Moroccan government is stepping up with programs like "Cities without Slums," aiming to provide better housing for many families. They've also rolled out a housing assistance program worth $919.6 million to help 114,000 families afford homes.
According to the Ipsos Predictions 2025 report, 82% of people think home prices will keep rising. This belief is pushing more folks to buy homes now, before prices climb even higher.
These efforts and expectations are shaping a vibrant real estate market, with the middle class at its core, eager to invest in property as a stable asset.
As the middle class expands, their purchasing power grows, fueling a cycle of demand and development in the housing sector.
Sources: Statista, RP Realty Plus, Ipsos, Atalayar
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.
9) With tourism booming, you’ll find high demand for short-term rentals
Morocco is seeing a huge boost in tourism lately.
In just the first seven months of 2024, 10 million tourists visited, a 15% jump from the same time in 2023. By October, the number had climbed to 14.6 million visitors, marking a 19% increase over the previous year. This influx is not just a number; it’s a sign of Morocco's growing appeal as a travel destination.
With more tourists, there's naturally a higher demand for places to stay. While exact figures for short-term rental occupancy aren't available, the trend is clear. More visitors mean more people looking for accommodations, and platforms like Airbnb are becoming increasingly popular, suggesting a shift towards short-term rentals.
The Moroccan government is not sitting idle. They have a plan to attract 17.5 million visitors by 2026 and aim for 26 million by 2030. This involves diversifying tourist experiences and improving infrastructure, which is likely to draw even more visitors and boost the demand for short-term rentals.
For those considering buying property in Morocco, this tourism boom is a golden opportunity. The growing number of tourists means a potentially lucrative market for short-term rentals. Investing in property now could position you well to benefit from this trend.
As Morocco continues to break tourism records, the demand for short-term rental properties is expected to rise. This is not just speculation; it's a trend backed by the country's strategic efforts to enhance its tourism sector.
Sources: Ecofin Agency, Enso Connect, The Rio Times
10) Eco-friendly properties are gaining value due to the government's focus on sustainable development
The Moroccan government's push for sustainable development is boosting the value of eco-friendly properties.
They've rolled out incentives to encourage green construction, like the thermic regulation introduced in 2015, which is a game-changer for the building sector. This regulation is steering construction towards sustainability, making eco-friendly homes more valuable.
In 2023, the Marrakech Sustainable City Project kicked off, focusing on urban planning with a green twist. This initiative is all about improving life quality through biodiversity, sustainable transport, and energy efficiency, making properties in these areas more attractive and valuable.
Morocco's dedication to renewable energy is also drawing in big bucks from abroad. Between 2010 and 2022, the country received $5.6 billion for renewable energy projects, which is a huge boost for solar, wind, and hydropower infrastructure. This influx of funds is enhancing property values in areas benefiting from these green advancements.
These efforts are not just about going green; they're about making smart investments. As Morocco continues to develop its sustainable infrastructure, property values in eco-friendly areas are on the rise, attracting both local and international buyers.
For anyone considering buying property in Morocco, these developments mean that investing in eco-friendly areas could be a wise move. The government's focus on sustainability is not just a trend; it's a strategic shift that is reshaping the real estate market in favor of green properties.
Sources: GlobalABC, UNESCO, Yabiladi
11) The stable Moroccan dirham lowers currency risk for foreign investors
Buying property in Morocco is appealing partly because of the stable Moroccan dirham.
Over the past year, the dirham has shown minimal fluctuations against major currencies like the euro, staying between 10.40 and 11.14. This consistency means you won't face unexpected losses from currency swings, making it easier to plan your finances.
Morocco's financial health is backed by strong international reserves. In September 2024, these reserves were at 124% of the adjusted ARA metric, according to the IMF. This acts as a safety net, ensuring the country can handle foreign exchange needs even when the economy is shaky.
The Central Bank of Morocco plays a big role here. Their smart monetary policies, like using a currency basket and a flexible exchange rate, help keep the dirham steady. This approach manages external shocks and keeps investors feeling secure.
For anyone considering investing in Moroccan property, these factors mean less currency risk. You can focus more on the property itself rather than worrying about currency issues.
In short, the dirham's stability, backed by solid reserves and effective policies, makes Morocco a safer bet for foreign investors.
Sources: Capital.com, IMF eLibrary, Atalayar
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.