Why real estate in Morocco attracts investors
The combination of urban growth, tourist demand and a large rental market makes real estate in Morocco interesting. In many cities, gross rental yields are at a level that is rare in Western Europe, provided you keep your purchase price, occupancy rate and management under good control.
The key cities and areas for returns
Returns are not a “national average”. They vary greatly by city, neighborhood and property type (studio/apartment/riad/villa). A practical starting point is to look at gross rental yields by major city:
- Tangier: relatively high gross yields (roughly 6.89%–9.28%; around 8% on average).
- Marrakech: often strong due to tourist demand (about 6%–8.38%; around 7.08% on average).
- Casablanca: broad rental market (about 5.61%–8.18%; around 7% on average).
- Rabat: a more stable profile (about 5.91%–7.14%; around 6.68% on average).
- Agadir: lower on average (about 4.4%–5.19%; around 4.82% on average).
How do you translate “city” into a real deal?
- Neighborhood matters more than the city: proximity to business hubs, universities, hospitals, public transport and “walkability” determines rentability.
- Tenant type determines property type: expats/business = modern apartment + parking + good internet; tourism = experience + location + reviews; locals = value for money + accessibility.
- Exit strategy: choose locations that remain sellable if rentals temporarily soften.
Rental strategy: long-term vs short-stay
Long-term rental
Long-term renting often provides more predictability (lower vacancy, less operational pressure). The downside is that tenancy law and collection/eviction can take time in practice.
Research on the rental market explicitly notes that eviction procedures for non-payment follow a legal process and can be lengthy in practice.
Short-stay (Airbnb/booking) and tourist rentals
Short-stay can deliver higher gross returns, but it is management-intensive and requires compliance. In many situations a permit/license or classification is required; renting without authorization can lead to sanctions.
- Pros: higher daily rates, flexibility, often higher gross income in strong tourist hotspots.
- Cons: seasonality risk, platform dependency, more wear and tear, cleaning/linen/guest support, and permit/registration requirements.
Costs that make or break your return
Many investors calculate too optimistically because purchase and transaction costs are underestimated. At purchase, notary/registration and “land conservation” (registration) often add up to around 6–7% of the purchase price (indicative).
Return calculation: gross vs net
- Gross yield = annual rent / purchase price.
- Net yield = (rent - vacancy - management - maintenance - taxes/fees - utilities/HOA) / total investment (incl. costs).
- Practical rule of thumb: build 2 scenarios: conservative (lower occupancy, higher costs) and optimistic.
Legal and due-diligence checklist (essential)
- Title and registration: preferably only buy property with clear title/registration in the official registration system (Conservation Foncière) and have it checked by an independent notary/lawyer.
- Zoning & use: verify that the property fits your rental purpose (residential vs tourist, HOA/building rules, local municipal rules).
- Contracts: for long-term: clear rental agreements, deposit, payment terms and procedure in case of arrears.
Can you buy as a foreign investor?
In general, non-residents can own real estate in Morocco in urban areas. A well-known restriction is agricultural land: it is often more complex and is usually addressed only through specific structures or alternatives.
Which areas make investors “perk up”?
- Tangier: combination of demand (living/working) and relatively high yields.
- Marrakech: attractive for short-stay provided you organize compliance and management tightly.
- Casablanca: solid for long-term rental due to its economic core and broad tenant base.
- Rabat: stability and institutional demand; often “less peak, more calm”.
The 7 questions you must be able to answer before you buy
- Who is my ideal tenant (tourist, expat, local, student) and does the neighborhood fit?
- What is my realistic occupancy rate (monthly average, season, competition)?
- What are my total acquisition costs (incl. indicative 6–7% transaction costs)?
- Who handles management/cleaning/maintenance and at what fee?
- Am I compliant for short-stay (registration/permit/classification where required)?
- How do I limit the risk of payment arrears, and what is my plan if procedures take a long time?
- What is my exit: sale, refinancing, or switching to another rental model?
Conclusion
Yes, investing in real estate in Morocco can be a good plan—but it is not “buy blindly and cash in”. The best results come from a sharp location choice, a suitable rental strategy, realistic net calculations and watertight legal checks. If you do that well, you will often find the most interesting combination of demand and return in cities such as Tangier, Marrakech and Casablanca.
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Do you want to approach this as a serious investment (not a gamble)? MAROQ helps you with a practical checklist, reliable partners and a clear route from orientation to purchase and rental strategy—so your return is not just on paper but also works net.
