Marrakech is experiencing a real estate bubble linked to various factors such as the modernization of infrastructure, tax exemptions and benefits granted to investors who have installed a climate conducive to the development of the real estate market. So if you're planning a move to Marrakech and are looking to buy property, here's all you need to know.
The municipality covers a vast area divided into several specific real estate markets that attract many international investors. As a result, rare and exclusive properties are available, ranging from standing to prestige: villas with a swimming pool, penthouses with panoramic views, high-end apartments but also sumptuous traditional Riads.
Property prices in Marrakech
According to Bank Al-Maghrib's statistics for the first quarter of 2022, real estate prices in Marrakech have increased by 2% compared to the previous three-month period, with a 0.3% increase in residential property prices and a 3.6% rise in land costs.
Mostly located in the Medina, Riads are real atypical properties. Prices depend on location, condition, size and materials used. They can, therefore, vary significantly from 8000 Dhs / m² for a property to renovate and up to 20 000 Dhs / m² for a well-renovated one. Riads are traditionally-shaped Moroccan houses, with grand salons giving into a central tiled courtyard, often with a garden at the center.
According to Global Property Guide research, the prices of new Riads in Marrakech may be offered in the market for 2 million Dhs to 10 million Dhs, depending on the size. Older ones may be sold for US$ 200 000 or sometimes less.
The Guéliz district, in the city center, includes shopping areas, outlets and renowned establishments, particularly appreciated for business meetings. The price of property can vary from 10,000 Dhs / m² for an old apartment to 18,000 Dhs / m² for new luxury properties.
Very central, the "upscale" neighborhood of Hivernage is the favorite destination of luxury lovers in Marrakech. There are properties whose prices range from 15,000 Dhs / m² to 35,000 Dhs / m².
Finally, the area of the Palmeraie offers exceptional properties in a peaceful space, ranging from 8,000 Dhs / m² to 30,000 Dhs / m². Twenty years ago, you would have been laughed at for wanting to live in the Palmeraie, but the area of palm groves beyond the French-built new town has now become home to some of the city's wealthiest residents and some of its most beautiful hotels. A road snakes through the palm groves off the main Marrakech' Fez road, and the Palmeraie circuit, although no longer as calm as it once was, still runs through an area of great beauty.
Procedures for buying property in Marrakech
Concerning the process of buying real estate property in Marrakech, it is quite straightforward. The legal administrative and legal costs of the real estate purchase are the responsibility of the buyer, who is supposed to register the sale contract at the land registry. To make the purchase legal, you will also need papers like the construction permit, the title, the habitation permit and the authorized plans.
Once all the terms have been agreed on, you will have to go to a notary in order to get all the papers checked. After that, you will go to the Conservation Foncière to pay the notary fees, the title change fees and the registration fees. The total price of all this amounts to 6.7% of the property price, including VAT.
Seasonal rentals in Marrakech
The very first unique property of Marrakech is obviously the Riad. Indeed, in order to acquire a Riad, you have to live in the historical city, namely the Medina of Marrakech. Selling a Riad as the main residence or as a guest house is still very popular. Prices have been falling steadily but have now stabilized, and it is time for purchasers to take advantage of these real estate offers.
Luxury villas and residences are also among the most desirable properties in Marrakech. It is worth noting that the city has what it takes to captivate Europeans and Americans who are in search of sun and a change of scenery. It takes only one or two hours by plane to get there, and you can fly there every weekend, especially as there are low-cost flights.
Which are the safest districts to live in in Marrakech?
Hivernage
Situated southwest of the Medina, close to the airport, Hivernage is a quiet area to live in in Marrakech. The Koutoubia and the Jemaa el-Fnaa square are just about ten minutes away by taxi. The large avenues in this area are bordered by palm trees, and the atmosphere is calm. At its extreme south-western end are found the Menara Gardens, which cover the entire neighborhood. The district comprises a few residences and offices but also some luxurious, modern hotels.
To the west of Hivernage, a new zone called M Avenue is being developed. It is a long shopping promenade with high-end boutiques, international shops, restaurants and hotels. With exclusive neighborhoods in progress, the construction designs of the area are inspired by those of the Emirates.
Guéliz
Guéliz is the "new center" of Marrakech and is located northwest of the old city. This district is recent and was constructed under the French protectorate at the beginning of the 20th century. The area is now mainly middle class and is home to many offices. Nearby, there are a number of attractions, such as the Majorelle Garden and the Yves Saint Laurent Museum.
Living in this district is like staying somewhere else where the western influence is present. Among other things, there are shops and malls. There are also international restaurants, fast food outlets and cafés.
Guéliz can be easily reached thanks to the main road that goes through it. It only takes ten minutes and about 30 Dhs to get to the rest of the city. With regard to accommodation, there are lots of hotels. With its big streets and buildings that border it, you are quite far from the authentic character of the Medina.
Good reasons for buying in Marrakech
Enjoy tax benefits
Taxation in Morocco is lower than in other countries, as there are fewer taxes to pay. Nevertheless, the municipal tax associated with a guest house, villa or secondary residence in Marrakech must be taken into consideration.
In addition, tax exemption is applicable to rental income. In this way, the rentability of your property rises significantly once you make a well-thought-out property purchase with a return on investment. If you decide to use your property as your main residence in Marrakech, other tax exemptions may apply for resale after a few years.
Several projects with a single investment
You would probably like to purchase a property in Marrakech for a specific project. Perhaps you want to rent out your property, plan for your retirement, or just want a house to spend your holidays in the sun. Still, did you know that all of these plans can be achieved with a single investment?
Indeed, if you invest in a house or villa in Marrakech, you are free to come and spend your holidays whenever you want. Nevertheless, when you are absent, your property can still earn you money if you rent it out to holidaymakers. There are specialized agencies that can manage the rental in your absence. This is the perfect way to rent with peace of mind. Then, when you retire, all you need to do is arrange your move to spend your golden years there.
An affordable real estate market
The price per square meter in Marrakech differs from one district to another. However, there is a tendency to compare prices with those in Europe. Indeed, the property cost in Marrakech is as much as four times lower than in France, for example, although prices have increased due to the costs of construction supplies. Therefore, you can have a beautiful 250 m² villa in Marrakech with all the comforts that go with it for the same price as a 90 m² flat in the center of a large French city.
Lower currency than the euro
One of the other factors that make it attractive to invest in property in Marrakech is the value of the local currency. In fact, the Dirham is ten times below the Euro. Thus, this factor plays in favor of all European investors.
Low cost of living
Regardless of whether you choose to acquire a property to live in or rent out, the cost of living remains a definite advantage. The fees charged are far lower than in many European countries. This means that you will spend less if you decide to live in Marrakech. This is also an excellent opportunity to attract tourists. Therefore, you can easily find occupants in order to earn some rental income. Besides, knowing that Moroccan prices are low, tourists tend to put more money into accommodation. This makes your luxury property in Marrakech an ideal offer.
Enjoying the Moroccan sun
The climate in Marrakech is a good thing, regardless of the reason for your investment. Indeed, given that it only rains 40 days a year, the red city is an appealing place to live in. Morocco's nice lifestyle attracts a lot of people. In fact, the country is said to attract up to 11 million travelers every year. The domestic tourist market is also expanding rapidly as economic cities and middle-class incomes improve. There is a regular and steady flow of visitors throughout the year who come to Marrakech for weekends and holidays.
Competitive health and education facilities
In Marrakech, you will have access to all the health and medical specialists you need in order to enjoy a stress-free journey or expatriation. For French people benefiting from the CFE (social security extension for French people living abroad), they can get medical treatment anywhere at a lower cost. The city has a number of renowned clinics, including the Polyclinique du Sud and the Clinique Internationale, as well as numerous laboratories and qualified doctors who are usually educated in Europe or the United States, such as cardiologists, pediatricians, ENT specialists, gastroenterologists, and even osteopaths! In addition, Marrakech offers a wide range of French and international educational establishments, including the American School of Marrakech, the high school of Victor Hugo, Campus Europa Marrakech, etc.
Proximity and accessibility
The flight from Marrakech is only two to three hours, which is almost less than the time it takes to fly from Paris to Bordeaux! Thanks to daily, low-cost flights and special offers, you can quickly and cheaply travel from Marrakech! The city is increasingly sought after as there are magnificent golf courses designed by the greatest players or famous architects and luxurious villas in the Palmeraie, which appeal to wedding planners. Art lovers and/or admirers of Morocco can spend a long weekend there for an exhibition, a golf competition, or a festival. Night clubbers from all over the world can have a party there for a weekend. Besides, the city is also accessible to non-Moroccan residents living in other cities and seeking the warmth or the craziness of the city, as well as Moroccans with greater purchasing power.
Security
The police presence is very reassuring all over the Kingdom, but in the cities like Marrakech, where the Medina is large, they are present in a hidden way and in civilian clothes, so that regular tourist patrols in the Medina enable you to walk around safely and to shop without fear of being scammed. In addition, there are security guards everywhere as well as in the residences.
Artistic and cultural radiance
In Marrakech, artistic creation is everywhere and is constantly interacting with handicrafts. The curious and ingenious artisans of Marrakech are constantly creating and experimenting new materials, and it is common for them to be spotted by amazed international artists. From the moment you enter Marrakech, you will feel this creative spirit, this great ability to adapt, and the artistic creativity of the craftsmen. In addition, Marrakech is a cultural city with many magnificent sites to visit, but gradually becoming an indispensable meeting place for modern art.
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