Published on and written by Cyril Jarnias
Investing in real estate in Marrakech is a fantasy for many Europeans, MREs (Moroccans Residing Abroad), and retirees seeking sun. Between postcard riads, villas under palm trees, and apartments in the new city, the offer seems endless. But behind the Instagram images, there is a very data-driven market, with yields, hidden costs, huge price gaps between neighborhoods, and precise taxation, both in Morocco and in the country of residence.
This analysis is based exclusively on recent data and studies to transform the purchase intention into a concrete, well-argued, and realistic investment project, thus avoiding approximations.
A tourist market in overdrive… but with still affordable prices
Marrakech remains one of the big winners of the Moroccan tourism boom. The country welcomed approximately 17.4 million tourists in 2024, then 19.8 million in 2025, and Marrakech alone accounts for nearly 40% of visits. Result: millions of overnight stays, an explosion of short-term rentals, and constant pressure on both residential and tourist real estate.
The average price per square meter for apartments in Marrakech can reach 13,500 MAD, well below European capitals.
Nationally, the market is slowly emerging from a slowdown phase: residential transactions fell by 14.5% in the first quarter of 2025, but in Marrakech itself, prices continue to rise, by around 3 to 7% per year for “standard” properties, and more in the luxury segment.
A more expensive city, but not overpriced
Compared to Casablanca or Rabat, Marrakech is in the same price range for high-end properties, while remaining slightly cheaper for smaller apartments.
| City | Avg. apartment price (MAD/m²) | Avg. villa price (MAD/m²) |
|---|---|---|
| Marrakech | ~13,000 | ~20,700 |
| Casablanca | ~14,500 | ~20,300 |
| Rabat | ~14,500 | ~20,300 |
In other words, for a foreign investor, the “postcard” Marrakech is not out of reach: prices remain competitive given tourist demand and observed rental yields.
Rental yields among the highest in the region
Nationally, the average gross rental yield is around 6.72% in the second quarter of 2025 (down from 7.75% at the end of 2024). Marrakech, however, performs better than the average.
Recent data gives an average gross yield of about 7.08% for residential in Marrakech, with some sources reaching up to 7.5% in 2026. In practice, the city falls within a range of 6% to over 10% depending on the type of property, neighborhood, and rental strategy (long-term or seasonal).
A net yield of 6% is considered the maximum performance on the local real estate market.
Studios vs. villas: size really matters
The best yields do not come from large prestige villas, but rather from small, well-located properties. In Marrakech, studios and small 1-2 bedroom apartments consistently outperform larger units.
| Property type in Marrakech | Average gross rental yield |
|---|---|
| Studio / 1-bedroom (25–45 m² / 45–65 m²) | Up to 10% and more (well-located) |
| 1-bedroom (overall average) | ~6.00% |
| 2-bedroom | ~6.85% |
| 3-bedroom | ~8.38% (according to one source, but often at lower prices) |
| Large prestige villas (Palmeraie…) | ~5% on long-term lease |
The logic behind these figures is simple: rental demand is concentrated on flexible properties (1-2 bedrooms) for young professionals, couples, small households, and tourists. Large villas rent for high absolute amounts, but their acquisition price is so high that the percentage yield remains lower, especially in long-term rentals.
Gross vs. net: what you really keep
On average, in Marrakech, the gap between gross and net yield is between 2 and 3 percentage points. In other words, a 8% gross yield easily turns into 5–6% net once you factor in:
– local taxes,
– condo fees,
– routine maintenance,
– insurance,
– possible property management fees,
– and some vacancy.
The monthly rent-to-purchase price ratio is typically between 0.6% and 0.7%, which equates to 7–8% per year. A ratio of about 0.65% per month is considered favorable for a rental operation.
Neighborhood mapping: yield, price, vacancy
Marrakech is not a homogeneous market. From one neighborhood to another, you can see up to 5 percentage points difference in yield, with very different risk profiles.
High-yield neighborhoods: dynamic periphery and student areas
The best gross yields are found in popular, growing neighborhoods like Semlalia, Daoudiat, Amerchich, Izdihar, Route de Safi, or Sidi Youssef Ben Ali. Observed yields there range between 8% and 10% gross.
These areas are driven by:
– strong local demand (students, young professionals),
– still moderate prices per square meter,
– and real rental tension on small units.
On the flip side, these are less “postcard” neighborhoods and farther from typical tourist routes.
Low-yield but highly sought-after neighborhoods
At the opposite end, Hivernage, Palmeraie, Amelkis, or parts of Majorelle show the lowest gross yields, often between 5% and 6.5%. But these are also the most luxurious markets and those that have recorded the strongest price increases, especially in Palmeraie (up to 15% annual increase over some periods).
Rental vacancy: where do homes stay empty the shortest?
The average rental vacancy rate in Marrakech is between 6% and 9%. But again, it all depends on the area:
The central and prestigious neighborhoods of Marrakech (Guéliz, Hivernage, Agdal) have very low vacancy rates (4% to 6%) due to high demand. Conversely, developing peripheral neighborhoods can show significantly higher rates, between 8% and 12%.
In the best locations, an owner can count on 3 to 5 weeks of vacancy per year, provided the property is well-managed and correctly priced.
By neighborhood type: price / yield summary
| Neighborhood / Area | Typical prices (MAD/m²) | Observed gross yield | Dominant demand profile |
|---|---|---|---|
| Medina (riads) | 6,000 (to renovate) – 15,000 (renovated) | 8–12% (seasonal) | International tourists |
| Guéliz | 12,620 – 18,000 | 6–9% | Expatriates, professionals, city tourists |
| Hivernage | 20,000 – 35,000 | ~5–7% | High-end clientele |
| Palmeraie | 15,000 – 30,000+ | 6–9% (villa), 8–12% (seasonal) | Luxury, villa stays |
| Agdal / Prestigia | 8,000 – 12,000 (emerging zones) | 7–10% | Families, expats, golf |
| Targa | 10,000 – 12,500 | 7–10% | Local households, MREs |
| “Yield” neighborhoods (Semlalia, Daoudiat, etc.) | 8,000 – 11,000 (order of magnitude) | 8–10% | Students, local professionals |
Short-term vs. long-term: two strategies, two different businesses
Investing in Marrakech first means choosing a rental strategy. Long-term rental and short-term rental have nothing in common, neither in management nor in risk profile.
Long-term rental: stability above all
On standard leases, Marrakech generally offers gross yields between 5% and 7% in central areas and up to 8–10% in some rising peripheries. The major advantage: occupancy above 90% in the best neighborhoods and a relatively predictable cash flow.
Tenant profiles include:
The rental real estate market in Marrakech attracts a diverse clientele, including tourism and service professionals, local families, students (especially in Semlalia and Daoudiat neighborhoods), and a growing expatriate clientele in Guéliz, Hivernage, and Agdal.
For indicative rents, here are some examples:
| Property type | Typical monthly rent (MAD) |
|---|---|
| 1-bedroom city center | ~3,400 to 4,200 |
| 1-bedroom outside center | 2,000 – 4,000 |
| 3-bedroom city center | 5,000 – 10,000 (various sources) |
| 3-bedroom outside center | 2,500 – 9,000 |
Short-term (Airbnb, etc.): higher revenue, but heavier management
The seasonal rental market in Marrakech is one of the most dynamic in Africa. Data from Airbnb and analytics tools show:
– an average occupancy rate of about 64–74% depending on the period,
– an average of around 234 nights rented per year,
– an average nightly rate of about 799 MAD,
– and an average monthly gross revenue around 6,200 MAD, with wide dispersion.
In practice, the vast majority of properties fall within this range:
| Key indicator (Marrakech – short-term) | Typical value |
|---|---|
| Average occupancy rate | ~64–74% (up to 80% if well-managed) |
| Nights rented / year | ~220–234 |
| Average daily rate (ADR) | ~700–800 MAD |
| Typical monthly revenue | 2,500 – 12,000 MAD (80% of listings) |
| Top properties (riads, villas) | 15,000 – 30,000 MAD / month |
Gross yields in this segment frequently exceed those of standard leases by 1 to 2 percentage points, and can climb to 10–15% for the best Medina riads or villas on Route d’Ourika/Palmeraie.
But this gross advantage comes at a cost in management: concierge, cleaning, maintenance, platform commissions, marketing, regulatory formalities. Ultimately, net yields often converge to 5–7%, or even 8–9% for the most efficient operators.
Operating expenses on a well-managed short-term rental can represent 43–55% of gross revenue, especially if you entrust everything to an operator charging an 18–25% commission.
Concrete example: an apartment in Guéliz-Hivernage
Numbers only make sense when applied to a practical case. Let’s take an apartment of 54 m² in Guéliz-Hivernage, for which a file precisely itemized the total acquisition cost.
| Item | Amount (MAD) |
|---|---|
| Purchase price (net) | 1,350,000 |
| Registration fees (4%) | 54,000 |
| Land registry fees | 20,450 |
| Notary fees | 15,000 |
| Agency commission | 40,500 |
| Various administrative fees | 5,000 |
| Total investment | 1,484,950 |
Ancillary costs represent about 10% of the base price, which is within the typical range of 8–15% for Marrakech. To hope for a decent net yield, you must calculate on 1.48 million MAD and not on 1.35 million.
For an apartment rented long-term, furnished, at a rent of 8,000 MAD per month, the monthly rental income is 8,000 MAD.
– 96,000 MAD in gross annual rent,
– giving a gross yield of about 6.5% on the total price,
– and probably 4.5–5% net after ordinary charges (tax, condo fees, insurance, maintenance, vacancy).
In short-term rental, with a well-managed listing potentially generating 11,000–12,000 MAD gross per month, the gross yield would rise to about 8–9%, but at the cost of more complex management and heavier operating expenses.
Recurring costs: what a property really costs per year
Beyond the acquisition cost, a rental property in Marrakech requires an annual budget that should not be underestimated. For a standard apartment, you typically find:
Estimated minimum annual cost for maintenance and repairs of a property worth 1 million dirhams, representing 0.8% of its value.
For a professionally managed short-term rental, the cost structure might look like this (real example):
| Cost item (short-term) | Annual amount (MAD) | Comment |
|---|---|---|
| Concierge (18%) | 41,580 | Commission on revenue |
| Urban tax + TSC | 12,500 | Local taxes |
| Condo fees | 9,000 | Residence with services |
| Insurance | 3,500 | Multi-risk landlord insurance |
| Water / electricity / internet | 10,200 | Utility bills |
| Maintenance | 9,000 | Minor repairs, air conditioning |
| Consumables (linen, supplies) | 5,000 | Guest turnover |
| Tourism promotion tax | 9,680 | Collected from guests |
You can see how you quickly reach 40–46% of revenue in expenses, especially if you want to maintain a service level matching the expectations of international travelers.
Financing: loans, rates, and down payment
To finance a purchase in Marrakech, foreign investors can turn to Moroccan banks, which have developed a fairly comprehensive mortgage offering. Major institutions (Attijariwafa Bank, Bank of Africa, CIH, Crédit du Maroc, Banque Populaire, etc.) as well as Islamic banks (Murabaha) finance both residents and non-residents.
Recent data shows:
Main features and conditions of home loans for residents and non-residents.
The average rate observed in early 2025 is about 5.18%.
Rates for standard loans typically range between 4% and 6%.
Loan terms can extend up to 20-25 years.
Residents can generally finance 70 to 80% of the project.
Foreign non-residents have access to loan-to-value ratios of 50 to 70%.
In practice, banks almost systematically require a down payment of 20 to 30% of the property price, or even 30–50% for non-residents.
Debt-to-income ratios are regulated:
– 35% of income for incomes up to 20,000 MAD,
– 40% between 20,000 and 40,000 MAD,
– 45% above 40,000 MAD.
Certain public schemes like FOGARIM and FOGALOGE guarantee loans for low-income households or Moroccans living abroad, but they mainly concern the local primary residence market, not necessarily the foreign investor targeting tourist rentals.
Moroccan taxation of rental income
Local taxation matters for the final yield. Morocco applies a fairly clear regime on rents received by individuals.
Gross rental income is subject to a flat 40% deduction for expenses, with the balance taxed according to the progressive income tax scale. For certain rents paid by companies, a 10% or 15% withholding tax may apply. Starting in 2025, an option for a single flat rate of 20% will be possible in certain cases.
For a non-resident owner, you must add the taxation of their country of residence, although with the possibility of a tax credit thanks to double taxation treaties (notably with France).
Simulations conducted for French investor profiles show:
– a retiree with a tax rate of 0–11% can achieve a “net-net” yield (after Moroccan and French taxes) of 6.6–7.2%,
– an executive with a 30% tax rate: 5.3–5.9%,
– an executive with a 41% tax rate: 4.8–5.5%,
with monthly cash flows that can range from 590 to 890 euros depending on the scenario.
Capital gains and resale taxation
On resale, real estate capital gains are in principle taxed at 20% in Morocco, with a minimum of 3% of the sale price. The net capital gain is calculated by deducting from the sale price:
– the purchase price,
– acquisition costs,
– certain documented works,
– and interest related to financing.
Exemption from capital gains tax is possible if the property has been a primary residence for at least six years. Special regimes also exist for small capital gains or small units. For a pure rental investor, this exemption is rarely applicable; it is therefore crucial to factor in the 20% tax rate in the project’s exit business plan.
Legal framework: foreigners’ rights and purchase procedure
Legally, Morocco offers a relatively protective framework for foreign investors, subject to a few simple principles.
Key points:
Foreigners can freely acquire urban properties (apartments, villas, commercial premises) in full ownership. The main restriction concerns agricultural land intended for farming, which is subject to specific rules. Transaction security relies on the Land Registry system and obtaining a “land title.” The notary plays a central role in verifying the title, drafting the deed, carrying out registration, and securing funds.
The typical process involves a sales agreement (compromis de vente) (often with a 10% deposit), followed by the notarization of the final deed, and then its registration with the Land Registry. Timelines generally range between 4 and 12 weeks.
To secure the future possibility of repatriating the resale proceeds abroad, the funds must be brought in via a convertible dirham account, declared to the Exchange Office. Otherwise, the outflow of funds may be limited to annual tranches.
Off-plan and new neighborhoods: betting on the future
Beyond the resale market, new real estate and off-plan sales (VEFA) are taking an increasingly important place in Marrakech, driven by projects all over the city: Route de Casablanca, Route de l’Ourika, Targa, Agdal, Sidi Ghanem, etc.
A example of a new development on Route de Casablanca illustrates the positioning:
– residence of 166 apartments (1-2 bedrooms, duplexes with terraces),
– building with 5 floors plus rooftop pool, gym, playground,
– gated residence, 24/7 security, mandatory underground parking (50,000 MAD),
– prices between 962,000 MAD (52 m²) and 2,122,500 MAD (duplex 98 m² + 87 m² terrace),
– flexible payment over 2 or 4 years (FlexyPay),
– 10 minutes from Guéliz and Majorelle Garden.
The appeal of off-plan is twofold:
– lower entry price than upon delivery, with possible appreciation between reservation and key handover,
– staggered payment according to construction progress, which allows smoothing the financial effort.
Concrete examples cite apartments bought off-plan for around €130,000 in the heart of Guéliz and valued at over €160,000 upon delivery, representing an unrealized capital gain of about 20–25% excluding leverage from credit.
Risks do exist, however: delivery delays, slow-moving projects, quality below commercial promises. Hence the importance of:
– checking the project’s registration,
– auditing the developer (past achievements),
– analyzing with a notary the VEFA contract and associated guarantees.
Medium-term trends: 2030 in sight
Medium- and long-term projections are rather favorable for Marrakech.
Several drivers support demand:
National target for visitors to Morocco by 2030, as part of tourism growth.
Projections mention:
– rent increases of 5 to 15% in areas directly impacted by new infrastructure (train stations, expressways, tourist routes),
– an overall market expansion and rental demand growth of 8 to 10% by 2035.
At the same time, demand for more sustainable properties (eco-construction, energy savings) is growing strongly in the high-end segment, creating a sub-market capable of absorbing above-average prices.
For which investor profile is Marrakech relevant?
Based on the data, investing in real estate in Marrakech is especially suitable for several distinct profiles.
Lovers of the city and its lifestyle, who seek both a second home and a supplemental income through seasonal rentals, will find a reasonable compromise in a reasonably sized riad or a nice apartment in Guéliz/Hivernage. Gross yields can reach 7–10%, but you have to accept the management, or delegate by cutting into the net.
For a rational investment approach focused on yield, prioritize small apartments (1-2 bedrooms) located in dynamic neighborhoods of Marrakech such as Guéliz, Semlalia, or Agdal, as well as along developing axes like Route de Casablanca and Route de l’Ourika. Studios near universities or employment hubs offer gross yields that can reach or exceed 10%, with the advantage of diversified rental risk.
Finally, capital gain hunters will look more at the luxury segment (Palmeraie, Hivernage, golf resorts) and new off-plan in transforming neighborhoods. Rental yields there are lower in percentage, but price increases – already observed at 9–12% per year in areas like Targa or Agdal – can more than compensate.
What you absolutely must secure before buying
Investing in Marrakech can be very profitable, but 90% of mistakes made by foreigners come down to a few points of vigilance often overlooked.
Three major areas to secure:
1. The title and compliance of the property Check the land title with the Land Registry, ensure there is no mortgage, no complicated co-ownership, and no contradiction with the urban plan. In the Medina especially, ownership histories can be long and sometimes unclear.
To guarantee the freedom to repatriate funds upon resale, it is imperative that funds pass through a convertible dirham account. It is also necessary to carefully negotiate the credit conditions (rate, term, guarantees) and assess the sensitivity of cash flow to a possible, even slight, increase in interest rates.
3. The rental strategy and global taxation Define from the outset whether you are targeting long-term, seasonal, or a mix, factoring in regulatory constraints on furnished tourist rentals (licenses, insurance, safety). Have the combined tax impact (Morocco + country of residence) quantified, especially for heavily taxed taxpayers.
By following these steps and systematically comparing commercial promises with real net yield figures, investing in real estate in Marrakech can become more than a postcard dream: a solid asset in a city whose tourist and economic attractiveness is not fading.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
