Should you buy property in Marrakech now?

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 Marrakech 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 neighborhoods like Gueliz, Palmeraie, and the Medina. 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 are current property prices in Marrakech by neighborhood and type?

Marrakech property prices in September 2025 vary significantly across neighborhoods and property types, with luxury areas commanding premium rates.

City center locations like Gueliz and Hivernage see modern apartments priced between 13,000-16,178 MAD per square meter (€1,200-€1,450/m²). These areas attract both local professionals and international buyers seeking urban convenience and modern amenities.

Palmeraie luxury villas represent the top of the market at 20,700-30,000 MAD/m² (€1,900-€2,700/m²), reflecting the area's prestige and resort-style living appeal. The Medina's traditional riads trade between €1,200-€2,500/m² (12,000-15,000 MAD/m²), with unique restored properties commanding premium prices up to 5.4 million MAD.

Suburban areas like Agdal, Route de l'Ourika, and Targa offer better value at 6,000-12,000 MAD/m², providing strong opportunities for investors seeking higher yields with moderate price appreciation.

Land prices in premium development zones show 8-12% annual appreciation, making them attractive for long-term investors willing to develop or hold for future gains.

How have Marrakech property prices changed in the last year and what's the short-term outlook?

Marrakech experienced dramatic price growth in 2024, with property values jumping over 20% before stabilizing to more sustainable levels in 2025.

As of September 2025, the market has normalized to steady annual growth of 3-7% across most property types and neighborhoods. Luxury villas in Palmeraie continue showing the strongest performance with year-over-year increases reaching 15%, while city-center apartments in Gueliz and Hivernage show more moderate 2-3% annual growth.

Tourist-focused districts like Hivernage and parts of the Medina maintain upward momentum driven by strong international demand and recovering tourism numbers. Foreign buyers, particularly from Europe and North America, are actively purchasing properties for both investment and lifestyle purposes.

Market forecasts for the next 12 months suggest continued growth in the 3-7% range, supported by infrastructure developments, stable political environment, and sustained foreign investment interest. Premium locations are expected to outperform the market average due to limited supply and high demand from affluent buyers.

What do medium-term forecasts suggest for Marrakech property values over 2-5 years?

Medium-term forecasts for Marrakech real estate remain optimistic, with analysts projecting sustained annual growth of 3-7% through 2030.

Several factors support this positive outlook, including major infrastructure investments, the upcoming FIFA World Cup 2030 projects, and Morocco's continued political and economic stability. The government's pro-investment policies and efforts to attract foreign capital create a favorable environment for sustained property appreciation.

Tourism recovery and expansion plans, including new hotel developments and improved transportation links, will likely boost demand for short-term rental properties and luxury residences. The high-speed rail connection and airport expansion projects specifically benefit neighborhoods like Agdal and Route de l'Ourika.

It's something we develop in our Morocco property pack, where we analyze various growth scenarios and investment strategies for different market conditions.

However, investors should monitor global economic conditions and tourism trends, as Marrakech's market remains sensitive to international visitor numbers and foreign investment flows.

How stable is Marrakech's property market for long-term investment over 5-10 years?

Marrakech's property market demonstrates strong long-term stability backed by fundamental economic and political factors.

The market benefits from Morocco's consistent governance, strategic geographic location, and diversified economy that extends beyond tourism. Government initiatives supporting real estate development and foreign investment create a stable regulatory environment for long-term property owners.

Key growth drivers include ongoing infrastructure modernization, expanding international business presence, and Morocco's role as a gateway between Europe and Africa. The upcoming World Cup 2030 infrastructure investments will have lasting positive effects on property values and rental demand.

However, long-term investors should consider potential risks including tourism dependency, global economic fluctuations affecting foreign investment, and possible regulatory changes. The market's resilience during recent global challenges suggests good stability, but diversification across property types and locations remains advisable.

Properties in established neighborhoods like Gueliz, Hivernage, and Palmeraie show the strongest long-term stability, while emerging areas offer higher growth potential with correspondingly higher risk levels.

Which areas of Marrakech see the most demand for residential living?

Gueliz leads residential demand as Marrakech's modern business and shopping district, attracting both expatriates and affluent locals seeking urban convenience.

Hivernage follows closely, offering luxury apartments and proximity to major hotels, restaurants, and the Menara Gardens. This area particularly appeals to international residents and investors seeking upscale living with tourist area benefits.

Palmeraie continues growing in popularity for those preferring villa-style living with resort amenities, golf courses, and larger properties. The area attracts wealthy Moroccans and foreign residents seeking privacy and luxury in a more suburban setting.

Agdal emerges as an increasingly popular choice for families and young professionals, offering modern infrastructure, schools, and good value compared to city center locations. Its proximity to business districts and developing infrastructure makes it particularly attractive for long-term residents.

The Medina attracts buyers interested in traditional Moroccan architecture and culture, though residential demand here focuses more on restoration projects and boutique guesthouse conversions rather than conventional family housing.

Which neighborhoods deliver the best rental yields for short-term and long-term leases?

Short-term rental yields perform best in the Medina and Palmeraie, where tourist appeal drives strong Airbnb-style rental demand.

Medina riads consistently deliver 8-12% yields due to their unique character and proximity to major tourist attractions. Restored traditional properties with authentic features command premium nightly rates from international visitors seeking authentic Moroccan experiences.

Palmeraie villas generate 8-12% yields from luxury vacation rentals, attracting affluent tourists and corporate retreat bookings. The area's golf courses, spas, and resort amenities support higher rental rates and strong occupancy levels throughout the year.

For long-term leases, Gueliz and Agdal provide the most reliable returns at 6-9% and 7-10% respectively. These neighborhoods attract expatriate professionals, business travelers, and local tenants seeking modern amenities and good transportation links.

Route de l'Ourika and emerging suburban areas offer the highest yields at 10-14%, though with longer rental periods and more local tenant bases. These areas benefit from infrastructure development and growing local employment opportunities.

What are average rental returns by property type across different city areas?

Property Type	Area	Short-term Yield	Long-term Yield	Occupancy Rate
Luxury Villa	Palmeraie	10-14%	8-10%	75-85%
Modern Apartment	Gueliz	8-10%	6-8%	85-95%
Traditional Riad	Medina	10-15%	7-9%	70-80%
Family Villa	Agdal	7-9%	7-10%	90-95%
Investment Apartment	Route de l'Ourika	8-11%	10-14%	80-90%
Luxury Apartment	Hivernage	9-12%	6-8%	80-90%

What budget ranges offer the best value for money and how do financing costs affect returns?

Properties priced under €2,500/m² in emerging areas like Agdal and Route de l'Ourika currently offer the best value-for-money combination of price appreciation and rental yields.

1. **Budget-Friendly High Yield (€80,000-150,000)** - Route de l'Ourika apartments - Targa suburban villas - Yields: 10-14% - Appreciation: 8-10% annually2. **Mid-Range Balanced Returns (€150,000-300,000)** - Agdal modern apartments - Medina restoration projects - Yields: 8-11% - Appreciation: 5-8% annually3. **Premium Stable Investment (€300,000-500,000)** - Gueliz luxury apartments - Small Palmeraie villas - Yields: 7-10% - Appreciation: 4-6% annually4. **Luxury High Appreciation (€500,000+)** - Palmeraie luxury villas - Premium Hivernage penthouses - Yields: 6-9% - Appreciation: 8-15% annually5. **Traditional Unique Assets (€200,000-600,000)** - Restored Medina riads - Historic properties - Yields: 8-12% - Tourism-dependent returns

Moroccan mortgage rates remain competitive for qualified buyers, though foreign buyers face lending restrictions that often require larger down payments. Favorable exchange rates for European and North American buyers effectively increase purchasing power and improve net yields when converting rental income.

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 liquid is Marrakech's property market and what are typical resale timelines?

Marrakech property market liquidity varies significantly by location and price positioning, with premium areas showing the fastest transaction times.

Prime locations in Palmeraie and Hivernage achieve remarkably quick sales, averaging 11-33 days for quality listings priced appropriately. These areas benefit from strong demand from both international and domestic wealthy buyers seeking luxury properties.

Gueliz city center properties typically sell within 30-45 days when priced competitively, appealing to both investors and residents attracted to urban convenience and modern amenities. The area's established infrastructure and business district location ensure steady buyer interest.

Suburban and emerging zones like Agdal and Targa require longer marketing periods of 60-120 days, though well-priced properties move faster as buyers increasingly recognize these areas' value potential. Infrastructure improvements and development projects are gradually reducing these timelines.

Most successful sales complete at approximately 6% below initial asking prices, while properties in less popular zones may require 10-15% discounts to attract buyers and close transactions efficiently.

What transaction costs impact net returns when buying and selling in Marrakech?

Marrakech property transactions involve several mandatory costs that directly impact investment returns and require careful calculation.

Registration fees account for 4% of the property purchase price and are unavoidable for all buyers. Notary and legal fees typically range from 1-2% of the transaction value, covering property verification, contract preparation, and legal compliance requirements.

Real estate agency commissions usually range from 2.5-5% of the sale price, depending on the agent, property type, and negotiation. Additional miscellaneous taxes and administrative fees can add another 1-2% to total costs.

Total transaction costs generally amount to 8-12% of the property price, creating a significant impact on net returns that investors must factor into their calculations. For a €200,000 property, expect €16,000-€24,000 in combined buying and selling costs.

It's something we develop in our Morocco property pack, providing detailed breakdowns of all costs and strategies to minimize transaction expenses while maintaining legal compliance.

What external factors currently influence Marrakech's property market?

Tourism trends represent the most significant external driver, with Marrakech's robust post-pandemic recovery directly boosting short-term rental demand and luxury property sales.

Major infrastructure projects create substantial positive momentum, particularly the high-speed rail connection, FIFA World Cup 2030 preparations, airport expansion, and new convention center developments. These projects especially benefit properties in Agdal, Route de l'Ourika, and city center locations.

Government policy maintains a favorable investment climate through foreign ownership facilitation, economic stability measures, and pro-development regulations. Morocco's political continuity and business-friendly approach sustain international investor confidence and demand.

International economic conditions affect foreign buyer activity, with favorable exchange rates for European and North American buyers currently supporting strong purchase activity. Global interest rate environments and economic uncertainty can impact both foreign investment flows and local financing conditions.

Regional developments including Morocco's growing role in African trade, renewable energy projects, and expanding international business presence create long-term positive fundamentals for property demand and economic growth.

Where should you position yourself today based on your investment goals?

Your optimal property positioning in Marrakech depends entirely on your primary investment objective and risk tolerance.

**For Primary Residence Living:**- Focus on Gueliz, Hivernage, or Agdal for modern apartments with urban amenities- Consider Palmeraie villas for luxury lifestyle with resort-style living- Budget €200,000-500,000 for quality properties with good resale potential- Prioritize established neighborhoods with proven infrastructure and services**For Short-term Rental Income:**- Target restored riads in the Medina for authentic tourist appeal- Consider modern apartments in Hivernage near major hotels and attractions- Palmeraie luxury villas for high-end vacation rental market- Budget €150,000-400,000 with 8-14% yield expectations**For Long-term Rental Investment:**- Route de l'Ourika and Targa offer highest yields at 10-14%- Agdal provides balanced returns with good tenant demand- Gueliz ensures stable occupancy with professional tenant base- Budget €100,000-250,000 for optimal value-yield combination**For Capital Appreciation/Resale:**- Palmeraie and Hivernage premium locations ensure fastest liquidity- Emerging infrastructure areas like Route de l'Ourika offer highest growth potential- Avoid over-improved properties in secondary locations- Budget €300,000+ for premium locations with proven appreciation track records

It's something we develop in our Morocco property pack, where we provide detailed location-specific strategies and budget optimization recommendations for each investment objective.

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. Sands of Wealth - Marrakech Price Forecasts
2. Orchid Island - Marrakech Neighborhoods 2025
3. Sands of Wealth - Marrakech Market Trends
4. Moroccan Dream - Property Prices by District
5. Orchid Island - Marrakech Market 2025
6. Kensington Morocco - Investment Guide
7. Global Property Guide - Morocco Price History
8. Vaneau Maroc - Morocco Real Estate 2025