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What will happen in Morocco’s real estate market? Will prices go up or down? Is Marrakech still a hotspot for foreign investors? How is Morocco’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Morocco, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Morocco’s property prices will grow moderately due to urbanization and better infrastructure
Morocco is seeing a big shift towards city life, with over 65% of its people now living in urban areas.
This urban movement is pushing up the demand for housing, especially as urban population growth continues at 1.8243%. Cities are becoming the go-to places for many, and this is naturally driving up the need for more homes.
Morocco isn't just sitting back; it's investing heavily in infrastructure. New roads and public transport systems are popping up, making cities more connected and accessible. These improvements make neighborhoods more appealing, which can boost property values.
The government is also playing a big role in the real estate scene. Through initiatives like the Damane Assakane fund, real estate loans have been given to hundreds of thousands of households. This makes buying homes easier and fuels demand, particularly in urban areas.
In cities like Casablanca and Marrakech, there's a construction boom. New housing and commercial spaces are being built to meet the rising demand. This activity is expected to support moderate growth in residential property prices.
Overall, residential property prices in Morocco are set for moderate growth, thanks to urbanization and infrastructure improvements.
Sources: Statista, Statista, Marrakech Price Forecasts, Trading Economics
2) Affordable housing prices in Morocco will rise steadily as the middle class grows and demand increases
Morocco's urbanization rate has surged, with over 65% of the population living in cities by 2023.
This urban shift is fueling a booming demand for housing, especially in bustling hubs like Casablanca. The government is trying to keep up by expanding affordable housing projects, offering developers incentives, and capping prices to make homes more accessible. However, there's still a big gap in supply, with a deficit of 340,000 residential units noted in 2022.
Recent natural disasters have only made things worse, likely widening this gap and pushing demand even higher. Meanwhile, Morocco's middle class is on the rise, with many eager to own homes. Surveys show a strong intent among this group to make major purchases, including real estate, in the near future.
As the middle class grows, so does their purchasing power, which is expected to drive up demand and prices for affordable housing. The economic environment is improving, adding more fuel to this fire. This trend is particularly evident in urban areas where the middle class is concentrated.
With more people moving to cities and the middle class expanding, the pressure on affordable housing is set to increase. The government's efforts, while significant, may not be enough to meet the rising demand. This scenario suggests that affordable housing prices will continue to climb as demand outpaces supply.
Sources: Statista, Ipsos, 7News
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.
3) Property values in seaside areas will be affected by coastal erosion and climate change
Coastal erosion and climate change are major threats to property values in Morocco's seaside areas.
In recent years, cities like Casablanca, Tangier, and Agadir have been hit hard by rising sea levels and frequent storms. These changes are not just a nuisance; they can lead to land submersion and severe storms, which are bad news for property stability and value.
Morocco's coastline is eroding fast, with the Mediterranean coast losing about 14 cm per year and the Atlantic coast about 12 cm per year. This affects over a third of the country's beaches, making properties less stable and less attractive to buyers.
Government reports are sounding the alarm on sea level rise, urging for climate resilience measures. The World Bank has even ranked Morocco’s coastal GDP among the top 10 at risk due to storm surges, which could seriously impact property values.
In the Tangier-Tetouan-Al Hoceima region, infrastructure projects have destroyed dunes, leading to severe coastal erosion and property devaluation. This is a clear example of how human activity can exacerbate natural vulnerabilities.
Sources: World Bank, Fes News, Frontiers in Marine Science, DW
4) Rental yields in Morocco's major cities will rise as young professionals seek urban living spaces
Morocco's cities are becoming increasingly popular among young professionals seeking job opportunities.
By 2030, 67.8% of Moroccans are expected to live in urban areas, up from 65.12% in 2023. This shift is largely due to the influx of young professionals into cities like Casablanca, Marrakech, and Rabat, where the tech and startup sectors are booming.
The demand for rental properties is skyrocketing as these professionals move in. Despite efforts to address the housing crisis, there's still a significant urban housing deficit of over 700,000 units. In Marrakech, for instance, the demand far outstrips supply, and the national campaign to provide 200,000 homes hasn't fully bridged this gap.
Property prices in major cities are climbing, reflecting the growing demand for urban living. Young professionals are not just after jobs; they are also seeking a lifestyle change, which is evident in the rising trend of co-living and shared housing. This preference for urban, shared spaces is becoming more common.
Foreign investment in Moroccan real estate is also on the rise, particularly in urban areas. This influx of investment is contributing to higher rental yields, making city properties more attractive to investors.
Sources: Statista, Documenta Platform, OECD, Global Property Guide
5) Property prices in Tangier will rise because of its strategic location and new infrastructure developments
Tangier's property market is on the rise due to strategic developments and investments.
The ambitious Mohammed VI Tangier Tech City project is a game-changer. With a whopping $1 billion investment, this smart industry city aims to create 100,000 jobs and house 300,000 people. Such a massive development is a magnet for foreign investors, which will naturally push property values up.
Then there's the expansion of the Tangier Med Port, a key part of the city's transformation. This project is set to boost economic activities and attract more businesses. As these businesses flock to the area, property demand will skyrocket, leading to higher prices in nearby neighborhoods.
Tangier is also seeing a boom in tourism. In 2024, international tourism jumped by 13%, with 10.9 million overnight stays recorded by July. This surge in visitors means a strong demand for accommodations, including residential properties, which will further drive up property prices.
Insider tip: The city's strategic location, acting as a gateway between Europe and Africa, makes it a prime spot for both business and leisure. This unique position is a major draw for investors looking to capitalize on the growing market.
With these ongoing developments, Tangier is not just a city to watch; it's a city to invest in. The combination of infrastructure projects and increased tourism is setting the stage for a property market boom.
Sources: CAS Expo, Global Construction Review, Go With Guide
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6) Rental yields in Marrakech and Agadir will stay strong because of steady tourist numbers
In 2024, Morocco experienced a 15% increase in tourist arrivals during the first seven months compared to 2023.
This surge in visitors has kept rental properties bustling, especially in hotspots like Marrakech and Agadir. With 14.6 million tourists visiting by October, these areas saw a 19% rise in visitors from the previous year. This means more people are looking for places to stay, making short-term rentals a hot commodity.
Low-cost airlines have played a big role in this boom. They've made it easier and cheaper for tourists to fly in, keeping rental demand high. Property owners in these regions are feeling optimistic, as the steady stream of visitors shows no signs of slowing down.
The Moroccan government is also pushing hard to boost tourism. They're aiming for 17.5 million visitors by 2026, which is great news for anyone thinking about investing in property here. This focus on tourism, along with Morocco's unique attractions, is keeping rental yields strong.
Media coverage has been a big help too, painting Morocco as a must-visit destination. This positive buzz is drawing even more tourists, ensuring that rental properties in Marrakech and Agadir remain in high demand.
So, if you're considering buying property in Morocco, these tourist-heavy areas are worth a look. The combination of government support, increased air travel, and a growing number of visitors makes for a promising investment.
Sources: Ecofin Agency, Capmad, The Rio Times
7) More foreign buyers will seek vacation homes and investment properties in Morocco's coastal areas
Foreign buyers are increasingly eyeing Morocco's coastal regions for vacation homes and investment properties.
In places like Agadir and Essaouira, property prices are on the rise as more foreigners look to buy. This surge is driven by the demand for vacation homes and short-term rentals, indicating that investors see potential for both personal enjoyment and rental income.
Tourism in Morocco's coastal areas is booming. In 2024, the country welcomed 7 million tourists in just seven months, with over half being foreigners. This influx boosts the demand for vacation rentals, making coastal properties a hot investment due to high rental yields and appreciation.
Infrastructure is also getting a boost, making these areas even more appealing. Projects like luxury resorts and the Tanger Med Port in Tangier are turning these regions into prime real estate spots. The lack of restrictions on foreign property ownership, except in agricultural areas, further sweetens the deal for international buyers.
Morocco's coastal regions are not just about sun and sand; they offer a strategic investment opportunity. With luxury developments and improved infrastructure, these areas are becoming increasingly attractive to foreign investors looking for both leisure and profit.
As the tourism sector continues to thrive, the demand for vacation homes and rentals is expected to grow. This trend is likely to keep pushing property prices up, making now a good time to invest in Morocco's coastal real estate market.
Sources: Global Property Guide, The Riot Times Online, Eaqar Agency
8) Demand for affordable urban housing in Morocco will grow as more young people join the workforce
Morocco's youth population is on the rise, with 5.95 million young people aged 15 to 24 in 2023.
As these young individuals enter the workforce, they're flocking to cities, driving up urbanization rates. By 2025, nearly three-quarters of Moroccans will live in urban areas, where most economic activities occur, contributing significantly to the country's GDP. This urban migration means more young people are on the hunt for city housing.
But here's the catch: many young Moroccans are facing economic hurdles. In 2024, the youth unemployment rate hit a high of 39.50%, making affordable housing a pressing need. The government is stepping in with initiatives like the *Logement à Faible Valeur Immobilière Totale* to address this demand.
These programs aim to provide affordable homes, recognizing the necessity for young people to find reasonably priced living spaces as they start their careers. The focus is on creating opportunities for the youth to settle in urban areas without breaking the bank.
With the youth population growing and urbanization on the rise, the demand for affordable housing is set to increase. The Moroccan government is aware of this trend and is actively working to meet the needs of its young citizens.
Sources: Statista, World Bank, Trading Economics, Oxford Business Group
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.
9) Rabat’s property market will grow as government initiatives promote it as a tech and innovation hub
Rabat's real estate market is on the rise thanks to government efforts to transform the city into a tech and innovation hub.
In 2023 and 2024, the Moroccan government announced a $36 million investment to create a specialized gaming zone in Rabat. This aligns with Morocco's goal to become a major player in the gaming industry across Africa and the Middle East. The gaming district is expected to create up to 5,000 jobs and generate significant revenue by 2030, attracting startups and tech companies to the city.
As more tech companies establish offices in Rabat, the demand for commercial real estate is likely to increase, driving up property values in the area. This is great news for potential property buyers looking to invest in a growing market. The Moroccan government's Digital Morocco 2030 strategy aims to create 240,000 digital jobs by 2030, further boosting the city's appeal.
Rabat's tech scene is also getting a boost from strategic partnerships with international tech giants like Huawei. These collaborations enhance the city's reputation as a tech hub, attracting more professionals and increasing the demand for housing. This influx of tech talent is expected to boost the real estate market significantly.
For those considering buying property in Rabat, these developments mean a promising future for the city's real estate market. The combination of job creation, tech industry growth, and international partnerships is setting the stage for a vibrant and dynamic property market.
Sources: Techpoint Africa, Agenzia Nova
10) Residential properties near new parks and green spaces will become more attractive
New green spaces and parks in urban areas are making nearby homes more attractive.
In Pittsburgh, homes within 500 feet of a park saw their value increase by $23,900 in 2023. This isn't just a local phenomenon; properties next to parks often see a value boost of 8 to 20%. People are increasingly drawn to these areas, making them hot spots for potential buyers.
In Tampa, Florida, even a slight increase in tree canopy can significantly raise property sales prices. This shows a clear preference for homes near green areas. Similarly, in Marrakech, properties with private gardens or courtyards are in high demand, highlighting the allure of green spaces.
Urban renewal projects are also playing a big role. The redevelopment of the Bouregreg River Valley in Morocco, which included new green spaces, was expected to boost property values. These projects not only make neighborhoods look better but also improve air quality and reduce noise, which is great for mental and physical health.
Green spaces contribute to enhanced biodiversity, which is another reason why they're so appealing. They offer a peaceful escape from the hustle and bustle of city life, making them a valuable asset for any community.
As cities continue to grow, the demand for properties near parks and green spaces is likely to increase. This trend is a win-win, benefiting both property owners and the environment.
Sources: Vibrant Cities Lab, Stock Titan, Sands Of Wealth
11) Demand for homes with office spaces will grow as remote work becomes more common
Remote work is becoming the norm, especially in 2023 and 2024.
In Morocco, a whopping 80% of developers prefer working remotely, with more than half opting for a hybrid setup. This shift is pushing people to look for homes that can easily accommodate a dedicated workspace.
As more folks set up home offices, there's a noticeable uptick in the demand for ergonomic furniture and adjustable desks. People want their workspaces to be both comfy and functional, which is influencing their property choices.
Architectural designs are catching up too. Builders are now incorporating home offices into new constructions, recognizing the need for flexible layouts that cater to remote work lifestyles.
Developers are keenly aware of this trend, and they're adapting by offering properties with dedicated workspaces. This aligns perfectly with the growing preference for homes that support a remote work lifestyle.
Sources: State of Dev, Statista, The McLemore Group
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12) Demand for small, energy-efficient apartments will grow as more people choose urban living in Morocco
In 2023, 65.12% of Morocco's population lived in urban areas, and this number is growing.
With energy costs climbing, the Moroccan government is offering tax breaks for developers building energy-efficient homes. This move is pushing the construction of compact, energy-efficient apartments that meet national standards.
There's a clear shift in the real estate market towards smaller, more affordable housing. Rising homeownership costs and strong job growth in cities are driving up demand for rental apartments.
Public transportation improvements in cities like Casablanca and Rabat are making urban living more convenient and accessible. This is especially appealing to younger generations who love the vibrant city life.
These factors are creating a buzz around urban living, with more people looking for compact, energy-efficient apartments in bustling city centers.
As cities become more attractive, the demand for these types of homes is expected to rise, aligning with the trend of urbanization in Morocco.
Sources: Statista, Baker McKenzie, DWS
13) Demand for properties in Agadir will grow as retirees flock to its mild climate
Agadir is becoming a hotspot for retirees, especially from Europe, thanks to its pleasant year-round climate.
Temperatures in Agadir typically range from 20°C to 30°C, making it an ideal escape from harsher climates. This mild weather is a big draw for those looking to enjoy their golden years in comfort.
Since 2020, there's been a 30% increase in requests for second homes in Agadir, showing a clear trend of retirees flocking to the area. This surge is reflected in the real estate market, with villa sales jumping by 27.5% year-over-year in the last quarter of 2022.
Agadir's appeal isn't just about the weather. The city boasts modern infrastructure, making it a convenient and attractive place to settle down. This combination of comfort and convenience is hard to resist for many retirees.
Media outlets and travel articles frequently highlight Agadir as a top retirement destination, which has undoubtedly boosted its popularity. The city's reputation as a retirement haven is growing, thanks in part to this positive media coverage.
With its mild climate and modern amenities, Agadir is set to become an even more popular choice for retirees in the coming years. The demand for properties in Agadir will likely continue to rise as more people discover its charms.
Sources: Kensington Morocco, Global Property Guide
14) Demand for retirement-friendly housing in Morocco will grow as the population ages
Morocco's life expectancy has climbed to 77.63 years in 2024.
With people living longer, there's a growing need for homes that suit older adults. By 2050, one in four Moroccans will be 60 or older, signaling a shift towards retirement-friendly housing. This trend is reshaping the real estate market, as more people look for homes that cater to their golden years.
As of September 2024, Morocco's elderly population has reached nearly 5 million, growing at a rate of 4.6% annually. This surge in the senior demographic is pushing for better infrastructure, especially in housing that meets their specific needs. Developers are starting to notice this shift, and some are already planning communities with amenities tailored for retirees.
In cities like Marrakech and Casablanca, there's a buzz about new projects designed with seniors in mind. These include features like single-story layouts, easy access to healthcare, and community centers. The demand for such housing is expected to rise as the population ages, making it a smart investment for those looking to buy property in Morocco.
Insider knowledge suggests that areas with good weather and healthcare facilities are particularly attractive to retirees. Coastal towns and cities with a slower pace of life are becoming hotspots for retirement communities. This trend is not just about housing; it's about creating a lifestyle that supports healthy and active aging.
Sources: Barlaman Today, Hespress, Barlaman Today
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.
15) Demand for properties in remote areas will drop as rural depopulation continues
In Morocco, there's a noticeable trend of people moving from rural to urban areas, driven by the search for better living conditions and amenities.
One big reason for this shift is the lack of job opportunities in rural regions. With high unemployment rates, especially among youth and women, many are drawn to cities where stable employment is more accessible. The informal economy dominates rural areas, making economic growth slow and uncertain.
Infrastructure development is another factor, as it's mainly focused on urban areas. While there's some modernization of housing in rural regions, it's not enough to keep residents from leaving. The 2023 earthquake in Haouz Province highlighted the vulnerabilities of rural communities, showing the urgent need for more targeted investment.
Real estate agents have noticed a declining interest in rural properties, which fits with the trend of rural depopulation. The lack of modern amenities and job opportunities in these areas is a major reason for the decreased demand. Younger generations are moving to cities, leaving behind an aging rural population.
Demographic studies reveal that rural populations are aging as younger people head to urban areas for better opportunities. This shift is not just about jobs; it's also about access to education, healthcare, and other essential services that are more readily available in cities.
As rural areas become less populated, the demand for properties in these regions continues to drop. This trend is expected to persist, leading to further depopulation and decreased interest in rural real estate.
Sources: World Bank, 7News, ISS Africa, Carnegie Endowment
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.