Real Estate Buying Guide in Marrakech
Real Estate Prices in Marrakech
Are you considering investing in real estate in Marrakech? The first thing to do is learn about the procedures for acquiring property in this Moroccan city. Find all the answers to your questions in this Marrakech real estate buying guide.
The real estate market in Marrakech is booming. Prices vary widely: a riad in the medina can cost anywhere from €70,000 to several million euros, depending on its size, condition, and location. Luxury villas and apartments, which are highly sought after, see their value increase each year.
What are the real estate prices in Marrakech in 2024?
In Marrakech, the real estate market is booming. In just a few years, prices per square meter have skyrocketed. This increase affects beautiful villas, luxurious riads, and bright apartments.
Traditional Moroccan houses—whether single-story or multi-story—riads are mostly located in the medina.
Their price varies depending on location, living area, the property’s condition, and the materials used in its construction. With rising prices, buying a riad to renovate is now more expensive.
Industry professionals say that properties needing modernization, currently available, are priced similarly to riads that were renovated a few years ago. Today, it is impossible to define the average price of a riad precisely. This amount ranges from €70,000 to several million euros. As mentioned earlier, a number of factors impact the value of these superb traditional Moroccan houses.
What types of property can you buy in Marrakech?
This highly attractive tourist city offers a wide variety of real estate opportunities. From traditional Moroccan houses in the medina to contemporary villas in new residential areas, the options are vast.
Riads are highly sought after by Western investors. These traditional Moroccan houses overflow with charm. Offering an authentic setting, their typical architecture immerses you in Moroccan culture. Often spacious, these residences feature large kitchens, vast living rooms, and accommodate numerous bedrooms and bathrooms. Shaded patios and terraces, lush gardens, refreshing palm groves, and modern swimming pools offer you more than a luxurious estate: a true haven of peace to fully enjoy the summer climate.
Some investors prefer to focus on penthouses and apartments located in gated, secure residences. It is in the most sought-after neighborhoods that they find the best opportunities. Modern and equipped with high-end amenities, the buildings in central Marrakech offer magnificent views of the Red City and the Atlas Mountains. With particularly spacious living areas, the villas and riads offer total floor areas ranging from 100 to 300 square meters. The new apartments generally do not exceed 150 square meters.
Beyond tax benefits, real estate investment in Marrakech is advantageous in terms of quality. Regardless of their location and size, properties have been built with high-quality, durable materials. Ensuring a high level of comfort, they require only minor renovation work when it comes to older villas. The results achieved are often breathtaking!
Simplified Purchase Procedure
Rest assured, buying a property in Marrakech is not very complicated. The hardest part will be finding the rare gem because the procedure does not pose any particular difficulty. The first thing to know: many riads and villas belong to foreign investors. Holders of modern title deeds, these Westerners, for the most part, sell these properties to other non-Moroccan buyers.
A title deed is granted after verifications. Irrefutable, these ownership papers are checked by a notary before finalizing the sale. Among them: the habitation permit, the title deed, the building permit, and the authorized plans. For guest houses, the notary also verifies the company’s documents. If everything is in order, the sales contract can be drafted.
It is worth noting that sales contracts in Marrakech are similar to French sales contracts.
Fees Related to Buying Property in Marrakech
When purchasing a property in Marrakech, the buyer and the seller must pay fees. The buyer is responsible for the legal and administrative fees related to the purchase of the property, the land registry, and the registration of the sales contract. The total of the notary fees, transfer fees, and registration of the title deed amounts to 6.5% of the property’s value, including VAT. If you purchase a riad to convert it into a hotel or guest house, a tax component is added for the business assets. It should be noted that many Western investors buy properties within the Red City to rent them out. In return, the seller of the property covers all taxes.
Note that real estate agency fees in Marrakech are shared between both parties. They do not exceed 3% of the property’s value for each party (a total of 6%).
A Highly Attractive Investment
In Morocco, the authorities support tourism and foreign investors. To encourage private investments, they have put in place very attractive tax legislation. Today, if you buy a riad to develop a hotel business, you will benefit from a tax exemption for five years. For the next five years, you will receive an income tax reduction.
And that’s not all: Moroccan authorities offer very advantageous conditions in terms of property taxes. If you plan to buy a villa in Marrakech with the intention of settling there and becoming a resident, you will also enjoy significant benefits.
- Your Moroccan villa will not be subject to wealth tax
- Your income will no longer be subject to CSG and RDS
- Beyond eight years of occupation of the property as your main residence, you will no longer pay housing tax
- You will not be subject to any inheritance tax
- You will not be affected by any customs tax on the moving of furniture and objects provided that they were acquired more than six months before their arrival in Morocco.
- As a foreign resident in this country, you will not pay taxes on rental income for three years. In subsequent years, you will benefit from a 40% reduction.
- As a resident French retiree, you will benefit from an 80% reduction on taxes linked to your retirement income, provided that it is received in a Moroccan bank account.
What is the role of the notary in a Moroccan real estate transaction?
In Morocco, no real estate transaction can be carried out without the intervention of a notary. In liaison with Land Conservation and the Tax Administration, the latter draws up all notarial deeds.
As an officer of the public prosecutor's office, the Moroccan notary respects legal legislation and establishes acts of acquisition in accordance with the Civil Code.
In the course of its activities, it undertakes to serve the interests of the buyer and the seller. Neutral and objective, the notary ensures the moral and legal character of real estate transactions. To do this, it carries out checks which enable it to certify the authenticity of the property titles. This lawyer also carries out urban planning studies of the environment of real estate offered for sale.
After signing the notarial deed, the notary records the transaction at
Land Conservation, but also with the Tax Administration. To list the transfer of funds executed by the acquirer, he requests a registration number from the Moroccan Exchange Office. This step is essential to repatriate the sums, free of charge, in the event of resale.
Finally, the notary supports the seller in his efforts to obtain a tax clearance. This certificate allows the transfer of the proceeds of the sale outside the country.
After signing the notarized deed, the notary registers the transaction in the land registry and pays the associated taxes on behalf of the buyer. This makes the transaction official and protects your rights.
How much down payment is needed for a mortgage in Morocco?
Most Moroccan banks require a deposit of 30% of the amount of the real estate transaction. They are therefore willing to lend you up to 70% of the amount allocated to the purchase of your Riad in Marrakech. Pay attention to interest rates which can be around 7%.
Like French banks, Moroccan banking establishments offer fixed and variable rates. As for the duration of real estate loans, it generally does not exceed ten years.
Please note: many French banks have subsidiaries in Morocco. These establishments are very willing to offer real estate loans to European investors.
Buying an apartment, duplex or villa in Marrakech, the pitfalls to avoid
Now you are sure, real estate investments in the ocher city are very promising. But before embarking on such a project, it is better to familiarize yourself with the Moroccan real estate market to avoid disappointments. To help you, Real Dreamhouse completes its real estate buying guide in Marrakech with some tips to avoid pitfalls.
Check the existence and validity of the title deed before any purchase.
Work with a specialized real estate agency to guide you through the process.
Ensure that building permits are valid and compliant with urban planning rules.
Beware of fluctuations in the property market and get a professional valuation.
Riad to renovate, what should you pay attention to?
If you are considering buying a Riad to renovate near the center of Marrakech, be aware that many of these old homes are owned by Moroccans. The ownership documents for these properties are handwritten and comply with Muslim law which subjects them to the “Melkia” regime.
If you purchase a Riad to renovate belonging to a non-Moroccan person, the ownership documents must comply with French legal requirements. In this case, it will be necessary to initiate a requisition procedure aimed at producing an incontestable title to the property.
After reading this real estate buying guide in Marrakech, you are ready to discover our selection of luxury properties for sale in the most beautiful neighborhoods of Marrakech. Land to build, Riad to renovate or beautiful apartment in the heart of Guéliz, Real-dreamhouse helps you find a base for your vacation in the sun or to invest in prestigious guest rooms. Without further ado, find your luxury villa in the heart of the medina and entrust us with the legal and tax procedures to be sure to carry out a secure transaction.
