Published on and written by Cyril Jarnias
Nestled between the Mediterranean and the foothills of the Rif, Tétouan long remained in the shadow of Tangier. Yet the city nicknamed “the White Dove” is becoming one of the most interesting real estate markets in northern Morocco for those seeking authenticity, still-affordable prices, and long-term appreciation potential. Between a UNESCO-listed medina, the tourist coastline of Tamuda Bay, new residential projects, and rising tourism, this market is worth a closer look.
This article summarizes recent data from Properstar, AsiaVillas, AirROI, and national economic sources. It provides a concrete, data-driven overview of the Tétouan real estate market, aimed at resident investors, Moroccans Residing Abroad (MREs), and foreign investors, whether they plan to buy for rental income, for living, or to prepare for retirement.
Tétouan, a city between heritage and new momentum
Tétouan, a city of nearly 470,000 inhabitants in northern Morocco, is part of the Tangier–Tétouan–Al Hoceima region. Nestled along the Martil Valley, between the sea and the mountains, it enjoys a Mediterranean climate with mild winters and hot, dry summers. Its historic center, the medina of Tétouan, has been a UNESCO World Heritage site since 1997, and the city is also a member of the UNESCO Creative Cities Network for crafts and folk arts.
The strong cultural identity, inherited from Andalusian, Arab, Berber, Jewish, and Spanish influences, now coexists with urban and economic transformation. This shift is driven by the rise of tourism, policies to reduce isolation, proximity to Tangier and the Tangier Med port, and the development of the coastal tourist corridor from Martil – Cabo Negro – M’diq – Marina Smir – Tamuda Bay.
Economically, Tétouan remains calmer and less saturated than Tangier: this is precisely what now attracts artists, expats, European retirees, the Moroccan diaspora, and also a new generation of investors looking for a “secondary” city with still-accessible prices.
An attractive regional position and prices lower than Tangier
In the greater Tangier–Tétouan–Al Hoceima region, apartments for sale show a median price around 1,295 DH per square foot, and houses around 1,193 DH per square foot. In this context, Tétouan appears as one of the most affordable markets in the area for apartments, at about 1,028 DH per square foot, slightly below the regional benchmark.
Average asking price per square foot for an apartment in Tangier, 6% higher than the regional median price.
For an investor, this means a lower entry point than in already tight markets, while remaining positioned in a region driven by infrastructure (Tangier Med, Al Boraq high-speed train, future Tangier–Tétouan highway) and sustained tourism growth.
How much does real estate cost in Tétouan? Price overview
Data from Properstar and other aggregators provide an order of magnitude for the Tétouan market. Citywide, several averages coexist depending on the source, but they converge around a range of approximately 7,700 to 9,800 DH/m² for residential real estate, all property types combined.
However, we can break it down by municipality and by neighborhood to better see where the most expensive and most affordable areas are located.
By municipalities in the Tétouan area
The municipalities attached to Tétouan show very different price levels, especially for apartments. This helps identify high-end sectors and those that are still “discounted.”
| Municipality | Property type | Average price per m² (DH) |
|---|---|---|
| Souk Kdim | Apartment | 11,375 |
| Mallalienne | Apartment | 10,921 |
| Mallalienne | Villa | 8,485 |
| Saddina | Apartment | 9,141 |
| Tétouan (municipality) | Apartment | 8,389 |
| Tétouan (municipality) | Villa | 10,216 |
| Oued Laou | Apartment | 7,785 |
| Zaouiat Sidi Kacem | Apartment | 7,474 |
| Dar Bni Karrich | Apartment | 6,192 |
| Azla | Apartment | 5,961 |
| Sahtryine | Apartment | 5,555 |
We can see that Souk Kdim and Mallalienne stand out as the most expensive municipalities for apartments, while Azla and Sahtryine offer significantly lower price levels, which may interest buyers on a tighter budget or investors looking for catch-up potential.
By neighborhood in the city
Within Tétouan itself, the differences between neighborhoods are just as pronounced. Here is an overview of average prices per square meter for apartments, and for villas where data is available.
| Neighborhood | Property type | Average price per m² (DH) |
|---|---|---|
| Hay Hamama | Apartment | 9,436 |
| Wilaya | Apartment | 8,448 |
| Tétouan (center) | Apartment | 8,212 |
| Touilaa | Apartment | 8,069 |
| Mahannech | Apartment | 7,454 |
| Oued Martil | Apartment | 6,808 |
| Hay Boussafou | Apartment | 6,346 |
| Coelma | Apartment | 6,244 |
| Coelma | Villa | 10,517 |
| Souani | Apartment | 6,180 |
| Nsasim Nakata | Apartment | 5,550 |
For an investor, these figures help structure a strategy. Hay Hamama and Wilaya represent the urban high end, while Coelma, Souani, or Hay Boussafou can offer more affordable entry points while still being within the urban fabric.
In practice, transaction prices vary considerably by property type. For instance, apartments in the city center can sell for around 800,000 DH, while villas easily reach 3,000,000 DH and more. A striking example is a high-end villa on the M’diq road, listed at 6.2 million DH for a surface area of 300 m², including a pool, home automation, and very high-end finishes.
Buying in the city center or on the outskirts: which trade-off?
Price-per-square-meter data published from a base of 45 recent contributions provides another perspective: in the center of Tétouan, buying an apartment costs an average of about 10,397 DH/m², compared to 6,750 DH/m² outside the center.
Rents vary significantly by location. For a single room, the average price is around 2,000 DH per month in the city center, compared to 1,699 DH on the outskirts. For a family-sized three-room unit, the difference is even more marked: over 4,300 DH per month in the center, versus about 2,480 DH outside the center.
For an investor, the trade-off boils down to this: the center is more expensive to buy and rent but offers better liquidity and a deeper rental market, while the outskirts allow for a smaller initial investment and a slightly higher gross yield.
Rental yields, price-to-income ratios, and affordability
The profitability and affordability indicators for Tétouan paint a nuanced picture. On paper, gross yields are decent, but the purchasing power of local households is limited.
Key indicators for Tétouan
| Indicator | Value |
|---|---|
| Price-to-income ratio | 10.56 |
| Mortgage payment / income (%) | 98.23% |
| Credit affordability index | 1.02 |
| Price/rent – city center | 21.88 |
| Price/rent – outside center | 19.90 |
| Gross rental yield – center | 4.57% |
| Gross rental yield – outside center | 5.02% |
| Average net monthly salary | 4,060 DH |
| Annual interest rate (20-year fixed loan) | 7.00% |
A price-to-income ratio above 10 and a theoretical monthly payment representing nearly 100% of the average income show that for an average Tétouan household, homeownership remains difficult, especially in the city center. For an investor with more comfortable equity (MREs, foreigners, expatriate executives, etc.), these local constraints can instead translate into a structurally supported rental market, both for long-term rentals and short-term tourist rentals.
The average gross yields on standard residential property in Tétouan fall in the low-to-mid range in Morocco.
The short-term rental market: a rapidly growing niche
AirROI data on short-term rentals in Tétouan (especially on Airbnb) help understand the tourist dynamic and the appeal of furnished properties, particularly near the medina and along the coastline.
Over one year, 199 active tourist rental listings were recorded.
Seasonality is pronounced: the month of August represents the absolute peak in revenue and occupancy, while March is often the weakest month. Over the year, performance levels break down as follows:
| Performance level (Tétouan, Airbnb) | Indicative monthly revenue | Approx. occupancy rate | Average daily rate (ADR) |
|---|---|---|---|
| Top 10% | ≥ $1,311 | ≥ 71% | ≥ $94 |
| Top 25% | ≥ $844 | ≥ 53% | ≥ $70 |
| Median | ≈ $478 | ≈ 32% | ≈ $47 |
| Bottom 25% | ≈ $210 | ≈ 16% | ≈ $35 |
During the high season (July, August, sometimes October), average revenues are around $1,013 per month, with an occupancy rate of about 43% and an average nightly rate around $72. The highest observed month reaches about $1,253 in monthly revenue, with occupancy near 49% and a nightly price over $80.
For an investor, a well-positioned property (location, decor, management) can generate significant cash flows over a few months. This requires accepting a high level of seasonality and organizing efficient management, either remotely or through a local manager.
The areas to prioritize for this type of investment, according to analyses, are the Tétouan medina, the Moulay El Mehdi area, as well as nearby coastal resorts like Martil, Cabo Negro, or Tamuda Bay, which are very popular in summer and well-identified on international platforms.
Overview of property types and available projects
The offering in Tétouan is diverse, from small studios in the city to high-standing villas with pools on the outskirts or by the sea.
We find:
Discover the main categories of properties available on the local real estate market, from modern apartments to luxury villas and renovation projects.
Apartments from 70 to 105 m², 2 or 3 bedrooms, with balcony and parking. In recent buildings with elevator, video surveillance, and equipped kitchens. Examples: near Marjane or ‘Rayan Residence’ in Kuilma.
Villas from 300 to 500 m², with up to 5 bedrooms, garden, pool, and home automation. Located on the M’diq road, toward Cabo Negro, or on the Martil road.
Plots from 260 to 300 m² in quiet, developing neighborhoods. Prices can exceed 3.6 to 4.2 million DH for prime locations (double frontage).
Old houses or riads in the medina or the Spanish neighborhoods (‘Ensanche’). Potential for conversion into a guest house, boutique hotel, or artist’s residence.
Apartments in gated communities in Martil, Cabo Negro, Marina Smir, or Na Martil. With pools, beach access, and sometimes proximity to golf courses.
International platforms like AsiaVillas, for example, list properties in Martil ranging from $18,440 to nearly $400,000 in the Na Martil area, while Na Tétouan Al Azhar and Na Tétouan Sidi Al Mandri group properties often between $196,000 and over $800,000, giving an idea of the upmarket trend in certain sectors.
Comparison with the rest of Morocco: a still-emerging market
Nationally, the residential real estate market is going through a slowdown phase: transactions fell by about 14.5% year-on-year in the first quarter of 2025, while prices remain broadly stable, or even slightly negative in real terms once inflation is taken into account.
The Tangier–Tétouan–Al Hoceima region is experiencing demand growth, driven by the development of the Tangier Med port, the Tangier–Tétouan axis, and tourism. Tétouan is now identified as a major investment hub, alongside Casablanca or Marrakech, with a smaller market but strong growth potential.
At the national level, gross rental yields average between 6% and 8% for long-term rentals, with potential of 10% to 12% for short-term rentals in very tight tourist areas. Tétouan, with its 4.5% to 5% on standard residential property, appears slightly below, but this differential is explained by rents that are still moderate relative to purchase prices. However, when factoring in the seasonal potential of the coast and the prospect of medium-term appreciation, the combination of yield and capital gain becomes more competitive.
Tourism, international events, and spillover effects
The main driver of demand in the north remains tourism. Nationally, the sector accounts for about 18% of GDP (direct and indirect effects combined), over 2.5 million jobs, and a record 17.4 million visitors in 2024. Tourism revenues reached 112 billion DH that same year, and arrivals continue to grow, with a national target of 26 million visitors by 2030.
Even though Marrakech and Agadir still concentrate the majority of overnight stays, the north—including Tétouan—clearly benefits from this dynamic, especially thanks to the Mediterranean coastline: Martil, Cabo Negro, M’diq, Marina Smir, and Tamuda Bay are now identified as a sort of Moroccan “Riviera,” with international hotels (Club Med, Sofitel, Ritz-Carlton…), marinas, golf courses, and gated resorts.
Tourism dynamics in northern Morocco
The prospect of the 2030 FIFA World Cup, which Morocco will co-host with Spain and Portugal, further strengthens this trajectory. Even if Tétouan is not among the top showcase cities for the tournament, the entire infrastructure network (roads, airports, rail) and the country’s positioning as a major tourist destination should help support the value of real estate assets in well-connected secondary cities.
Accessibility, infrastructure, and connection to Tangier
Accessibility is another major asset for Tétouan. The city has the Sania Ramel Airport just 6 km east, with international connections to Western Europe. It is also connected to Tangier, Ksar El Kébir, Larache, Chefchaouen, Bab Sebta (Ceuta border), and Oued Laou by a network of national roads and expressways. A 28-km expressway from Tétouan to Fnideq is already in service.
Length in kilometers of the future highway intended to connect Tangier to Tétouan to relieve congestion on the N2 road.
Beyond that, proximity to Tangier allows indirect benefit from the Al Boraq high-speed train (Tangier–Casablanca line), while awaiting the planned extension of the network to 43 cities by 2040. In the medium/long term, even projects still at the study stage, such as the underwater railway tunnel between Morocco and Spain, reinforce the idea of a strategic northern axis, of which Tétouan is fully a part.
A legal framework favorable to investors, including foreigners
From a legal standpoint, Morocco offers a relatively clear and welcoming framework for foreign buyers. There is no general restriction on urban real estate ownership by non-Moroccans. A foreign investor can fully own an apartment, villa, commercial property, or developable land in urban areas, without any residency or nationality requirement.
The acquisition of agricultural land outside urban perimeters and strategic or military zones is reserved for nationals. For a standard project in Tétouan city or its seaside resorts, these restrictions are generally not an issue, provided you prioritize properties with a clear land title registered with the Land Conservation (ANCFCC).
The acquisition process follows a standard pattern: preliminary contract (promise or agreement), payment of a deposit (often around 10%), checks by the notary (title, charges, planning), signing of the final deed, registration, and entry in the land register. The whole process can take 4 to 10 weeks for a simple urban property, and longer in cases of complex titles or land.
For foreigners, it is strongly recommended to use an experienced notary, verify the title via ANCFCC certificates, and, if in doubt about plot boundaries, hire a surveyor. Payment through official banking channels, via a convertible dirham account, secures the right to later repatriate sale proceeds and rental income.
Acquisition costs and taxation: what to expect
One advantage of real estate investment in Morocco is relatively straightforward taxation, with rates identical for Moroccans and foreigners. However, total purchase fees and taxes can represent between 6% and 10% of the sale price, or slightly more in certain arrangements.
In Tétouan as elsewhere in Morocco, a buyer should anticipate:
Percentage of the price of a standard residential property representing the registration fee in Tunisia.
In practice, it is prudent to budget about 8% to 10% of the price to cover all acquisition costs, especially if using a loan (which adds mortgage fees, around 1.5% of the loan amount).
The owner is liable for the housing tax and municipal services tax, calculated on an estimated rental value with a progressive scale. Significant deductions apply for primary residences, and new buildings are exempt from housing tax for five years. Rental income is subject to income tax under a simplified regime: a flat 40% deduction on gross rents is applied, and the effective tax rate on net income ranges from 10% to 15% depending on annual revenue.
Upon resale, a capital gains tax of 20% (minimum 3% of the sale price) applies for residents, with possible total exemption if the property has been the primary residence for at least six years or if the sale price is less than 1 million dirhams. For short-term speculative buy-to-sell, this tax must therefore be factored in.
Financing: possibilities and limits for buyers
Both local investors and foreigners can obtain real estate loans from Moroccan banks. Terms typically range from 5 to 25 years, with rates around 5% to 6% on average nationally (specific data for Tétouan mentions 7% on a 20-year fixed loan in the sampled data).
Most banks finance 70% to 80% of the price for a resident, and rather 50% to 70% for a non-resident foreigner, requiring a down payment of at least 20% to 30%, sometimes more. The Exchange Office also requires a minimum contribution of 30% for non-Moroccans living abroad who wish to benefit from the right to repatriate capital.
Amount of direct homeownership subsidies for Moroccan households, in the highest price bracket.
Given the price-to-income ratio in the city, it remains difficult for an average salaried worker to finance a purchase in the city center alone without family help or a significant down payment. For an external investor, the challenge is less about finding credit than accurately analyzing the local and tourist rental capacity of the property.
Opportunities and risks specific to Tétouan
A neutral reading of the data reveals Tétouan as a market with strong assets but also points of caution.
Strengths
First, prices are clearly below those of Tangier and other Mediterranean coastal towns, with a more accessible positioning for comparable surfaces. This gap creates room for gradual appreciation, especially as infrastructure strengthens (highways, airport expansion, urban upgrades).
Second, the combination of cultural heritage – UNESCO medina – Spanish influence visible in the urban layout – immediate proximity to the beaches of Martil, Cabo Negro, M’diq – gives Tétouan a unique signature that increasingly appeals to travelers seeking authenticity, not just “sun and beach.” This is a strong argument for projects like guest houses, renovated riads, and charming apartments for nightly or monthly rentals.
The Tétouan real estate market attracts a diverse clientele, including artists, European retirees, members of the Moroccan diaspora, young professionals drawn by a lower cost of living than in Tangier, and digital nomads. This diversity reduces the market’s dependence on a single customer segment.
Finally, public commitment to the northern cities — decongesting major metropolises, developing tourism, opening the region to Europe — provides a rather supportive macro context, at a time when the national market is in a soft phase. Investing in a secondary city at the start of an upswing cycle is often more profitable than entering an already saturated market.
Limitations and risks
Risks should not be underestimated. In Tétouan, as elsewhere in Morocco, market transparency can vary, especially for older properties or in peripheral areas where cadastral documentation is sometimes incomplete. Untitled “melkia” titles, family disputes, or unauthorized work in historic areas can complicate or block a project.
In the medina and old neighborhoods, any major renovation is subject to state authorization for heritage protection reasons. This process involves additional delays and costs, and requires being accompanied by professionals familiar with the regulatory framework.
The relatively modest size of Tétouan compared to Casablanca, Rabat, or even Tangier also means a smaller employment and consumer base. For a purely long-term rental investment, the depth of demand is therefore less, and rents cannot rise indefinitely without hitting the payment capacity of local households.
Finally, the market for professional property management is less structured than in the metropolises. For seasonal rentals, many owners manage directly through platforms or rely on informal intermediaries. For a non-resident foreign investor, this means finding a reliable partner or accepting greater personal involvement.
Which investor profile for which type of project?
In light of the available data, several investor profiles seem particularly well-suited to Tétouan.
A first profile is the Moroccan resident or MRE looking for a second home near the sea, usable in summer by family and rentable the rest of the time. Apartments of 70 to 100 m² in Martil, Cabo Negro, or in new residences near Tétouan, with pool and security, are suited to this mixed logic of personal use plus seasonal yield.
An investor profile aims to acquire character properties in the medina or the Ensanche to restore them into guest houses, riads, or boutique hotels. These projects, though complex (permits, renovation, marketing), fully benefit from growing tourist demand for authentic experiences.
A third profile is the yield investor, who prefers a simpler approach: buying one or more well-located apartments in recent buildings, near schools, shops, and roads, to rent year-round to middle-class families or students. The gross yield of 4.5% to 5% suggested by current data may seem moderate, but the relative stability of rents and the potential for long-term appreciation partially compensate.
An opportunistic profile may target building plots for villas in developing neighborhoods around Tétouan, anticipating a price increase as infrastructure improves. It is crucial to meticulously verify the legal status of the land, zoning, existing easements, and the foreseeable timelines for servicing before any commitment.
How to practically approach a project in Tétouan?
The first step is to clarify the objective: personal use, long-term rental, tourist rental, medium-term resale, or a combination of several options. This clarification will directly guide the choice of neighborhood, property type, and budget.
For a seasonal project, priority will be given to the coastline (Martil, Cabo Negro, M’diq, Tamuda Bay) or the medina, with special attention to the quality of the residence, ease of access, security, and amenities (pool, parking, caretaking). For year-round family rental, neighborhoods like Wilaya, Mahannech, Souani, or certain sectors of Coelma can offer a good price/location compromise.
The scouting phase for a real estate investment in the Tétouan region should combine several channels: consulting specialized portals (like Properstar or AsiaVillas), using local platforms, contacting locally established real estate agencies specializing in the area, and organizing on-site visits. The existence of listings in dollars for some projects in Martil and Tétouan illustrates that this real estate market is already connected to international investment circuits.
The legal aspect requires selecting an experienced notary and, ideally, an independent lawyer to validate documents (land title, certificate of ownership, planning certificates, tax status of the property and seller, etc.). Using ANCFCC online services to verify the title is a reflex to adopt.
For a real estate investment in Morocco, the investor must choose between a cash purchase and a local loan, considering current interest rates (generally between 5% and 6%, possibly reaching 7% for fixed-rate offers) and the stability of the dirham. Opening a convertible dirham account and the possibility of repatriating funds upon resale are important guarantees for a foreign investor.
Finally, for those targeting rentals, it will be essential to model the yield: purchase price + acquisition costs, realistic estimate of rent (monthly or seasonal), co-ownership fees, taxes, management costs, maintenance, vacancy periods. The figures provided by AirROI studies for Airbnb and by rental indices for standard leases allow building conservative scenarios.
A window of opportunity before market maturity
Tétouan will not become a “second Tangier” overnight. Everything suggests its evolution will be more gradual, more organic, with segmented upmarket growth: tourist coastline, renovated city center, well-connected expanding neighborhoods. It is precisely this intermediate phase, between a still-affordable market and a mature one, that constitutes an interesting window of opportunity for patient investors.
The combination of favorable factors — developing infrastructure, growing tourism, public policies favoring northern cities, still-high homeownership rates but persistent demographic pressure — paints a scenario where well-chosen assets in Tétouan can offer both decent profitability and gradual capital appreciation, without the volatility of already overheated markets.
This market is not speculative and fast-paced, but suits medium- to long-term investment strategies. It offers the additional advantage of investing in a city with singular charm, characterized by an Andalusian medina, the sea, and the mountains. This exceptional setting is rarely found at such a price level on the Mediterranean rim.
Ultimately, investing in real estate in Tétouan means betting on the rise of a still-discreet city that is clearly on an upward trajectory. With a methodical approach, solid professional support, and a good understanding of local realities, this northern city can be at the heart of a diversified wealth strategy, combining yield, appreciation, and quality of life.
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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.
