Published on and written by Cyril Jarnias
Oujda is increasingly drawing the attention of real estate investors, even as the Moroccan market goes through a slowdown. Between still affordable prices, major urban projects, industrial growth, and prospects for rising demand, the capital of the Oriental region checks many boxes for anyone thinking medium to long term. But investing in Oujda requires a solid understanding of the national context, local dynamics, market figures, and specific risks.
This article provides a comprehensive and data-driven assessment to determine the current relevance of a real estate investment in the city of Oujda.
A slowing Moroccan real estate market, but supported by the real economy
The starting point for understanding what is happening in Oujda remains the national economic situation. The Moroccan residential market is going through a phase of clear slowdown. Sales volumes are declining, construction remains timid, and prices are barely moving, even declining slightly in real terms.
Bank Al-Maghrib and official indicators show that the national residential property price index rose only 0.15% year-on-year in the first quarter of 2025. A nominal increase, but a real decline of 1.43% once inflation is factored in. Quarter-on-quarter, the drop is even sharper, with a decline of 2.12% (nearly 3% in real terms).
Annual decline in residential sales in the first quarter of 2025.
Yet this slowdown is not solely due to a collapse in demand. Some professionals, like the vice president of the National Federation of Real Estate Developers, describe the latest figures as “alarming,” while experts point to the role of administrative red tape, particularly delays in processing tax files related to property transfers.
At the same time, the real economy remains fairly robust. After the COVID recession (-7.2% in 2020), Morocco rebounded with growth of 8.2% in 2021, then 1.5% in 2022, 3.4% in 2023, and 3.2% in 2024. The IMF forecasts growth of around 3.9% in 2025 and 3.7% in 2026. Inflation, which spiked above 6% in 2022 and 2023, has fallen back to around 1% in 2024 and is expected to remain contained.
Average mortgage rate in Morocco in the first quarter of 2025, slightly up from 2024.
In other words, the Moroccan real estate market is in a turbulent zone, but against a macroeconomic backdrop that is fairly stable, with moderate inflation, still accessible credit, and structural demand supported by a housing deficit that, while it has fallen from 1.2 million units in 2002 to 400,000 today, remains significant.
It is in this context that the opportunity to invest in Oujda should be understood.
Oujda: a regional metropolis with strong catch-up potential
Oujda is no longer just a border town somewhat on the fringe of major tourist circuits. As the capital of the Oriental region, it has become the largest urban concentration in the area and the eighth-largest metropolitan area in the country, with around 450,000 inhabitants in the city and over 600,000 in the wider urban area. Demographic projections estimate that the Oujda–Bni Drar–peri-urban centers area will exceed 630,000 inhabitants.
In the area concerned, urbanization is massive, with over 96% of the population living in urban areas. Nearly 93% of this urban population resides specifically in the city of Oujda, which concentrates almost all major administrative offices, public institutions, and industrial zones. The city also has major infrastructure such as an international airport, a train station, an improving road network, Mohamed Premier University, as well as numerous schools and training centers.
Long hampered by the closure of the Algerian border and by massive informal trade draining capital and jobs toward the parallel economy, Oujda is seeking to reposition itself as a regional metropolis, a Maghreb platform, and a Mediterranean hub. Local and national authorities have multiplied major structuring projects with this goal.
A strategic geographic position, still underutilized
Nicknamed the “Gateway to the Orient,” Oujda occupies a strategic position at the northeastern tip of Morocco. It is about sixty kilometers from the beach of Saïdia, close to the Beni Snassen mountains, and a few hours’ drive from major cities like Fes, Meknes, or Nador. The distances remain significant (over 300 km from Fes, nearly 385 km from Meknes), which partly explains why the city has remained off the classic tourist circuits oriented toward Casablanca, Marrakech, or Agadir.
The region’s peripheral location is being offset by a massive infrastructure effort, including the Fes-Oujda highway, modernization of the railway line, the new Oujda-Angad airport, expressways, and future integration into the national high-speed rail network. Tramway projects and restructuring of the urban road network also aim to improve internal traffic flow.
For an investor, this means that the city’s accessibility is rapidly improving, which has a direct impact on residential and commercial appeal, and therefore on medium-term real estate demand.
Prices slightly down and moderate rental yields: a still affordable market
From a strictly real estate perspective, Oujda stands out first for its price and rent levels. The most recent data (end of 2024 – early 2025) show that the city, like the rest of the country, is going through a phase of slight value decline.
Recent price trends in Oujda
In the first quarter of 2025, residential prices in Oujda fell by 0.31% in nominal terms year-on-year. Accounting for inflation, the real decline reaches nearly 1.9%. This is the third consecutive year of correction after declines of around 1% and then 2.2% in the two previous years.
The slight decline in prices indicates a more favorable negotiation environment for buyers. This opportunity is reinforced by the general lengthening of sale times nationwide and demand that is held back by administrative red tape.
In terms of price levels, available figures provide an order of magnitude:
| Indicator | Value in Oujda |
|---|---|
| Average price per m² apartment city center | 7,500 MAD |
| Average price per m² apartment outside center | 4,800 MAD (range 3,600–6,000 MAD) |
Compared to major Moroccan metropolises (Casablanca, Rabat, Marrakech), these amounts remain significantly lower. Where some areas of Casablanca trade between 12,000 and 25,000 MAD/m², Oujda remains, on average, three to four times cheaper.
Rental yields: a more “wealth-building” profile than pure yield
To assess the appeal of a rental investment, the ratio between rent and purchase price is key. In Oujda, the following figures emerge:
| Rental indicator | City center | Outside center |
|---|---|---|
| Average rent F1 (1 bed) | 1,600 MAD/month (1,500–1,800) | 1,067 MAD/month (1,000–1,200) |
| Average rent F3 (3 bed) | 2,833 MAD/month (2,500–3,500) | 2,067 MAD/month (1,500–3,000) |
| Average gross rental yield | 4.62% | 5.02% |
| Price-to-rent ratio | 21.64 | 19.94 |
A gross yield of 4.6 to 5% is decent but below the Moroccan average (around 6.7% in Q2 2025) and well below the country’s leaders like Tangier, where average yields flirt with 8%. In Oujda, the investment logic is therefore more wealth-oriented: betting on future property appreciation in a context of urban and economic transformation, rather than counting on very high short-term cash flow.
The price-to-income ratio in Oujda, indicating that buying a home represents a significant financial effort for local households.
Very contrasting neighborhoods: from residential luxury to rapidly developing areas
One of Oujda’s assets for an investor is the diversity of its neighborhoods, with widely varying price ranges, services, and tenant profiles. Several areas stand out for a residential investment project.
High-end and sought-after neighborhoods
Areas like Al Qods (Hay Al Qods), Moulay Ismail, or certain parts of Al Andalus and Al Irfane represent the top tier in Oujda. Al Qods is cited as a popular neighborhood, combining upscale residences, modern infrastructure, private schools, shopping centers, and well-maintained parks. It offers a calm, family-friendly environment that attracts executives and professionals.
In several “premium” residential neighborhoods, prices per square meter range between 8,000 and over 11,000 MAD:
| Neighborhood (examples) | Estimated average price per m² |
|---|---|
| Al Qods | ~ 6,000 MAD |
| Hay Al Farah | ~ 7,000 MAD |
| Hay Al Matar | ~ 7,500 MAD |
| Hay Al Fajr | ~ 8,000 MAD |
| Hay Al Nasr | ~ 8,500 MAD |
| Hay Al Wafaa | ~ 9,000 MAD |
| Hay Al Amal | ~ 9,500 MAD |
| Hay Al Irfane | ~ 10,000 MAD |
| Hay Al Andalus | ~ 10,500 MAD |
| Hay Al Qasam | ~ 11,000 MAD |
These levels, even for Oujda’s most expensive neighborhoods, generally remain below national metropolises, but they already represent a local “upper-middle” segment. In these areas, the investor targets a solvent and fairly stable clientele, with reduced vacancy risks but yields close to the city average.
High-growth zones: southern Oujda, Al Moustakbal, expanding neighborhoods
Even more interesting for an investor seeking capital appreciation potential: the developing neighborhoods, particularly in the south of the city. New subdivisions and affordable apartment programs are emerging there, sometimes starting at around 250,000 MAD for 70 m², or just over 3,500 MAD/m², well below the average of 4,800 MAD/m² outside the center.
These neighborhoods still have vacant land and large plots, offering room for denser urban development in the future. They suit families looking to become homeowners and investors willing to wait a few years for infrastructure (roads, shops, schools) to develop alongside population growth.
The Al Moustakbal neighborhood illustrates this type of bet: presented as a rapidly rising area, it concentrates new real estate projects, modern amenities (shopping centers, leisure spaces), and its prices are rising quickly. It attracts young professionals and investors who anticipate rapid appreciation.
Popular and rental neighborhoods: Hay Hassani, Lazaret, areas near the stadium
Neighborhoods like Hay Hassani, Lazaret, or the stadium area stand out for their popular character, good accessibility, and lively local atmosphere. Around the stadium, nightlife (bars, restaurants, clubs) attracts a young crowd, and prices are rising due to strong rental demand.
These sectors are interesting for investors seeking good yield. They have lower entry prices than upscale neighborhoods and benefit from a broad rental clientele, including students and young families.
Major urban megaprojects changing the real estate game
Investing in real estate in Oujda also means positioning oneself in a city that the state and major institutional players have clearly decided to transform deeply. Several programs act as catalysts for future demand for housing, offices, shops, and hotels.
Oujda Urba Pôle: reshaping the city around a new center
Launched by King Mohammed VI in 2010, the Oujda Urba Pôle program is emblematic of this reshaping. With a budget of around 2.5 billion dirhams (over 220 million euros), this vast mixed-use project, led by the CDG group, ONCF, CRI, and the wilaya, aims to reposition Oujda as a modern metropolis, attractive for professional, residential, and hotel real estate.
The project unfolds in several phases. The first, “Les Quais Verts,” transformed a 4.7-hectare strip on the east bank of the Oued Nachef into a 76,000 m² development: upscale residential (around 400 apartments), offices, shops, and parking, with a new bridge to ease traffic.
The second phase, around the new train station, aims to create a true multimodal and business hub: a next-generation station, large esplanade, shopping center, 4- and 5-star hotels, office towers, and upscale residences, all articulated around modern architecture with ecological glazing and vast public spaces.
Area in hectares of the future residential park planned on the other bank of the river.
For the investor, these operations mean in the long run: optimizing the portfolio.
– an upgrade in residential and commercial supply;
– an increase in value of surrounding neighborhoods;
– the emergence of a “new center,” more modern, likely to capture a significant share of future demand.
Oujda City Center and conversion of former military sites
Another strong signal: the Oujda City Center project, part of a national program to relocate military installations within the city. On about 55 hectares in the urban core, it plans over 6,000 housing units, several hotels, a shopping center, banks, exhibition spaces, an education hub, a “university citadel,” a business center, and centers dedicated to offshoring and healthcare activities.
The city plans to complete the development of the plots, then give way to several years of construction. A second major project, on 75 hectares of former barracks (Rose Camp), is expected to create another hub mixing housing, hotel, commerce, conferences, administrative headquarters, and a large green belt.
Large urban projects have a dual impact: they increase the supply of new housing and strengthen the city’s attractiveness by creating jobs and improving services and quality of life. In the medium term, this dynamic should benefit land values in the areas concerned.
Infrastructure, amenities, and greening of the city
In parallel, a vast urban renovation plan, estimated at over 7 billion dirhams for all projects, aims to improve roads, green spaces, sports and cultural facilities. A 2025–2027 program plans the rehabilitation of streets, redevelopment of public squares, development of parks (Lalla Aïcha, Sidi Yahia oasis, ecological park), renovation of stadiums, and even installation of electric vehicle charging stations.
On sanitation, the city is gradually equipping itself with wastewater treatment plants, modernized landfills, and hydraulic improvements to limit flooding. The water issue remains sensitive, as Oujda depends on fragile groundwater and low rainfall, but structuring projects like the water supply from the Machraa Hammadi dam improve supply security.
These elements, which may seem distant from the question “Should I buy an apartment in Oujda?”, actually weigh on future valuation: a city that is better connected, greener, better equipped, safer, and more pleasant to live in will see its real estate prices converge, over time, with those of other regional metropolises in the country.
A powerful industrial and technological engine in the making
Beyond the residential dimension, Oujda’s attractiveness is also being strengthened by the emergence of industrial and technology zones of national scale.
Oujda Technopole: toward an industrial and digital hub
The Oujda technopole, integrated into the Med-Est program (eastern branch of the “Emergence” plan), is set to become one of the largest on the continent, eventually covering 800 hectares dedicated to industrial, logistics, technology, and service activities. The first phase has already developed part of it, and several emblematic projects have been launched there.
In the automotive sector, ATIV inaugurated an auto parts factory in the technopole’s free zone, on an eight-hectare plot. This unit aims to create over 3,000 direct jobs and marks the region’s entry into the Moroccan automotive value chain, which is already dynamic in the Tangier and Kenitra hubs.
Another industrial company, Hirschmann Automotive, plans a manufacturing and assembly unit for wiring on 2.2 hectares, with an investment of over 140 million dirhams and 500 to 800 expected jobs.
In the digital sector, the “Zone 01 Oujda” center, supported by several public partners, has set out to train thousands of young people in coding, artificial intelligence, blockchain, and big data. The goal is to position the city as a talent pool for digital services companies.
New service companies and offshoring
In parallel, recent agreements provide for the establishment of service companies like SII FLEXSHORE in the “Oujda Shore” zone, oriented toward digital professions, service centers, and offshoring. Ultimately, several hundred jobs are expected to be created there.
Investments generate increased demand for housing, offices, shops, and services. They also raise the local average income, which improves household rental capacity and buyer solvency.
For a rental investor, positioning oneself today on well-located housing relative to the technopole, industrial zones, and future service hubs means anticipating this growth.
Public housing assistance and financing mechanisms: levers to use
Another important aspect for anyone considering investing in Oujda concerns housing assistance schemes and financing mechanisms available at the national level.
Social and middle-class housing programs
Morocco has deployed several programs to reduce the housing deficit and facilitate homeownership, including:
– social housing at 250,000 MAD, for units of 50 to 80 m², exempt from VAT;
– “viable” housing at 140,000 MAD for very low-income households;
– middle-class housing, capped at 6,000 MAD/m² for surfaces of 80 to 120 m².
Thousands of agreements have been signed with private developers to build millions of units under this framework. Part of these programs directly or indirectly concern Oujda and its metropolitan area, where the share of informal housing and non-compliant construction remains high.
For an investor, these programs can offer two types of opportunities:
– buying new at capped prices, with strong end demand and limited vacancy risk, either to rent or sell later;
– targeting existing housing in neighborhoods undergoing regularization/rehabilitation, betting on the valuation effect once infrastructure work and formalities are completed.
Credit guarantees and mortgage market
Morocco also has dedicated housing guarantee funds, such as FOGARIM, which secures up to 70% of loans for households with informal income wishing to purchase a home under 250,000 MAD, or FOGALOGE for the middle class, civil servants, and Moroccans living abroad, up to about 1 million dirhams.
Average rate observed for a fixed 20-year loan in Oujda, remaining competitive relative to inflation and growth prospects.
For foreign investors, Moroccan regulations are relatively open: no ownership restrictions (except agricultural land), possibility of financing through local banks, convertibility of income and resale proceeds for investments made in foreign currency, subject to compliance with Exchange Office rules.
However, it is important to factor in ancillary costs (registration, notary, land registry, agency fees, capital gains tax, local taxes) which can add 10 to 20% to the face price of the property.
Oujda compared to other Moroccan cities: a catch-up market
In the Moroccan real estate landscape, Oujda does not play in the same league as Casablanca, Rabat, Marrakech, or Tangier in terms of prices and gross rental yields. National figures show for example that:
– Casablanca offers average yields close to 7%, with peaks above 8% for small units;
– Tangier stands out with average yields around 8%, driven by port and industrial dynamics;
– Marrakech and Rabat generally range between 6.5 and 7%.
In Oujda, as we saw, gross yields are closer to 4.6–5%, making it a less “profitable” market in the short term if you think only in terms of rental cash flow.
Compared to large cities like Casablanca or Rabat, real estate investment in Oujda has a much lower entry ticket, allowing you to acquire several properties for the price of one in the metropolises. Moreover, the medium-term capital appreciation potential (10–15 years) can be greater, as the city is undergoing transformation and starting from a lower base than already mature markets.
Finally, the major Oriental projects (Nador West Med port, strengthening road and rail links, development of Saïdia, etc.) are gradually placing the region in a new national economic geography. If relations with Algeria improve one day, Oujda could fully regain its role as a Maghreb crossroads, which would be a powerful accelerator for real estate.
Risks not to underestimate
Investing in real estate in Oujda is not risk-free. Several factors must be carefully examined before diving in.
First, the national market situation reminds us that effective demand can be constrained by administrative hurdles, property transfer delays, and bank caution. The decline in transactions in 2025 shows that finding a buyer is not always easy, especially for poorly located, poorly maintained, or overvalued properties.
The city faces major challenges: significant informal trade, vast informal housing areas, a sanitation deficit in some sectors, and water resource tensions. These factors can degrade quality of life and neighborhood desirability, while increasing operating costs through taxes, connection requirements, or necessary adaptation work.
On the legal front, as everywhere in Morocco, land security requires careful verification of property titles, parcel boundaries, any easements, and building compliance. The still frequent presence of informal housing on Oujda’s outskirts calls for extra vigilance: without a clear land title, no access to credit, no smooth resale, and a high risk of disputes.
Finally, the more modest yields than elsewhere require careful management of expenses (property taxes, maintenance, condominium fees, property management) to avoid seeing net yield fall below unattractive levels.
For which investor profile is Oujda relevant?
Based on all these elements, investing in real estate in Oujda seems particularly consistent for several profiles:
Potential investors for the Oujda real estate market are characterized by a long-term vision and a diversification strategy.
They know the terrain, believe in the potential of their city of origin, and aim for a long-term wealth investment.
They want to diversify a portfolio already exposed to Casablanca, Rabat, or Marrakech, betting on a catch-up market with a reduced entry ticket.
Able to position themselves early in high-potential areas around major projects (technopole, Oujda Urba Pôle, etc.), with a holding horizon of 10 years or more.
Conversely, an investor focused solely on immediate rental yield, with no appetite for local development risk, will likely find simpler and more profitable opportunities in Tangier, Casablanca, or even in certain tourist niches.
How to concretely approach an investment project in Oujda?
The methodology does not fundamentally differ from the rest of Morocco, but here it takes on particular importance.
First, the choice of neighborhood is central. Beyond price per square meter, one must analyze accessibility (main roads, transport), proximity to employment hubs (technopole, industrial zones, hospitals, university), environmental quality (noise, cleanliness, green spaces), and recent price dynamics. Neighborhoods like Al Qods, Al Matar, Al Fajr, or those near major urban projects deserve special attention.
It is essential to clearly segment and characterize the target tenant audience: middle-class families, civil servants, students, employees of industrial zones, or executives of service companies. Each segment has specific requirements regarding surface area, number of bedrooms, presence of parking or elevator, and the quality of common areas. These criteria directly determine the coherent rental levels suited to the market.
Financially, it is recommended to include all ancillary costs (purchase costs, taxes, maintenance, condominium fees, possible delegated management) in simulations to calculate a realistic net yield, based on observed average rents (e.g., 1,600 MAD/month for a city center studio, 2,800 to 3,000 MAD/month for a well-located three-bedroom apartment).
Finally, the legal and administrative dimension should not be neglected: use of an experienced notary, verification of the land title, study of the urban planning situation (planning certificate), check for absence of mortgages or disputes, compliance with Exchange Office procedures for foreign investors, etc.
Conclusion: Oujda, a city to buy for tomorrow rather than yesterday
Investing in real estate in Oujda today is, in a way, buying the future of a regional metropolis undergoing full remodeling. Prices are still affordable, rental yields decent without being spectacular, but the real promise lies elsewhere: in the city’s gradual upgrading, the arrival of job-creating industries and services, the modernization of infrastructure, and the requalification of an urban center long undervalued.
The Moroccan real estate market benefits from a stable macroeconomic framework (steady growth, controlled inflation, developed credit) and is supported by public housing assistance and social programs, gradually reducing the housing deficit and consolidating demand.
Oujda remains a demanding market, where investment success depends on a fine selection of locations, a good understanding of local dynamics, and a sufficiently long investment horizon to allow time for the major urban and industrial projects to produce their effects.
For those who accept this timeframe and bet on Oujda’s ability to confirm its status as the metropolis of the Oriental region, local real estate can be an interesting piece in a diversified wealth strategy, in Morocco and internationally.
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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.
