Property price trends in Marrakech
The property market is booming in Marrakech
Marrakech is a Moroccan city that is highly prized for its dynamism, charm and sunny climate. It is also a key destination for property investors, both local and foreign. In recent years, the property market in Marrakech has experienced strong growth, fuelled by a constant demand for quality properties in this tourist city. Whether you're looking for a second home, a rental investment or a holiday home, you'll find Marrakech to be a fast-growing market offering attractive investment opportunities.
A steady rise in property prices
Since the 2000s, property prices in Marrakech have grown steadily, with an average increase of 10% each year. Indeed, the Marrakech property market is driven mainly by demand from foreign buyers attracted by the tax advantages and attractive property prices in the red city. According to statistics, the average price per square metre in Marrakech has risen from 5,000 dirhams in 2006 to almost 15,000 dirhams in 2020, representing an increase of 200% in just 14 years.
Factors influencing property prices in Marrakech
Several factors are contributing to the strong growth in property prices in Marrakech:
- Tourist appeal : Marrakech is very popular with tourists looking for exoticism and sunshine, making it a prime destination for second homes and holiday homes.
- Infrastructure : The city boasts a host of modern facilities, such as an international airport, public transport, healthcare facilities, shops, etc., all of which make life easier for residents and visitors alike.
- Tax benefits : Morocco offers a number of tax advantages for foreign investors, including exemption from property tax for the first 5 years of ownership and very attractive capital gains tax.
- Political stability : Morocco is a politically stable country, which reassures investors that their investments will be sustainable.
The different property sectors in Marrakech
The real estate market in Marrakech is constantly evolving and is made up of different sectors, each with its own characteristics and opportunities:
- Residential property : It accounts for a large part of the Marrakech property market and mainly comprises villas, flats and riads. Foreign investors are attracted to these properties for their quality, location and rental potential.
- Commercial property : With tourism booming in Marrakech, many investors are turning to commercial property, such as hotels, restaurants, shops and so on. These properties generally offer attractive rental yields.
- Luxury real estate : Marrakech is also a luxury destination, with prestigious neighbourhoods such as the Palmeraie and the Ourika road, full of top-of-the-range properties that attract a more affluent clientele.
Current trends in the Marrakech property market
Although property prices in Marrakech have been rising steadily, there has been a more moderate increase in recent years. This stabilisation of the market may be explained by the global economic slowdown, as well as by a greater supply of properties for sale. It could also be an opportunity for investors to negotiate better prices for their future purchases.
Tips for successful property investment in Marrakech
For a successful property investment in Marrakech, it is advisable to follow these few recommendations:
- Calling in a professional: It's important to be accompanied by a local property professional who knows the market well and can guide you in your choice of investment and help you negotiate prices.
- Choosing a strategic location : Investing in a fast-growing or developing district can be a wise choice for future capital gains.
- Take maintenance costs into account: It is important to plan ahead for the maintenance costs of your property in Marrakech (co-ownership charges, property taxes, renovation work) to avoid unpleasant surprises.
- Opt for diversification: To limit the risks, it is advisable to diversify your investments by choosing several types of property and spreading them over different areas.
Conclusion
With its booming property market, tax advantages and tourist appeal, Marrakech offers an ideal setting in which to invest in real estate. Property prices continue to rise at a steady pace, offering investors interesting opportunities to diversify and make their portfolios more profitable. However, to make a successful investment in Marrakech, it is important to be well informed and to seek professional advice. By following this advice and keeping an eye on market trends, you'll be able to take advantage of the growth in property in Marrakech safely and effectively.