How to Invest in a Riad in Marrakech?

In terms of real estate investment, Marrakech is a very interesting destination. In this article, we explain how to invest in a Riad in Marrakech and how to proceed to make this investment. You will also discover tips on how to open and manage this type of establishment.

A Very Flourishing Market

Real estate market in full expansion, Marrakech attracts more and more investors. Besides its potential for economic growth, this Moroccan city attracts tourists from all over the world, hosts a strategic business center, and promises a stable local government. Easily accessible, the city of Marrakech has a modern airport and railway station. Very attractive culturally, it offers many international events including sports competitions and film festivals. A very lively tourist city, Marrakech has luxurious hotels, high-end brand boutiques, and many historical sites with atypical architecture. With more than 300 days of sunshine each year, the red city offers a very summery climate. On the real estate side, several choices are available to you. Titled and traditional properties guarantee reliable transactions. The first alternative is based on British and French legal systems.

Foreign Investors Favored

Favoring foreign investors, Moroccan law allows you to purchase all types of real estate, including Riads. If you are not a resident, you are required to leave the territory every three months. But you can easily obtain residency in this country. Be careful, you must ensure you are well aware of the local administrative and legal obligations before investing in a Riad in Marrakech. In addition to notary fees, other associated costs such as registration and real estate brokerage should be considered. Good news, property taxes are much lower in Morocco. Moreover, tax advantages are one of the major assets that attract Western investors. Whether you buy a Riad on the outskirts or in the heart of the medina, you will benefit from deductions reaching up to 80% of the taxable base amount. One condition: rental income must be received in a Moroccan bank account.Discover the selection of real estate for sale in Marrakech

Investing in a Riad in Morocco: Costs to Anticipate

Acquiring a Riad in Marrakech amounts to buying a luxurious and historical property. Seduced by this traditional architecture, you will enjoy a unique experience in an authentic setting. Because they offer a very pleasant dive into Moroccan culture, Riads are very successful with tourists. Thus, you can offer this property for rent. The taxes and fees related to purchasing a Riad in Marrakech mainly consist of registration fees. Generally, they do not exceed 10% of the property's price. To this is added the notarial tax of 0.5% and a 1% payment intended for land conservation. To determine the fiscal cost of a Riad, you must also consider the 1% fees including VAT. Finally, do not forget to anticipate brokerage fees if you seek the services of a real estate agency. Note that untitled Riads (melkia) are subject to titling fees. To avoid paying rights, invest in titled Riads. Currently, the cost of a villa in the city of Marrakech is estimated, on average, between 900 and 2,000 euros per m2. Among the impacting factors, you must consider the location, living area, charm, and quality of the structure.

How to Open a Riad in Marrakech?

As a future foreign buyer, you must know these few essential rules before looking for Riads to buy in Marrakech: Have a contribution of 30% of the total cost of your real estate project Do not exceed a debt ratio of 50%. Beyond that, you will not obtain a loan in Morocco. An important point: future income generated by the property's operation can be taken into account as professional income) In the context of a professional real estate loan intended for financing a rental property, the loan term cannot exceed 10 years

Ready to Invest in a Riad in Marrakech?

Armed with this information, you can start looking for a Riad to renovate or sell in Marrakech. To seize the best opportunities and successfully carry out your investment project, do not hesitate to seek advice from our specialized agency Real-dreamhouse. We offer a wide selection of land and luxury properties available in the most beautiful neighborhoods of the ochre city.