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 go about making this investment. You will also discover tips on how to open and manage this type of establishment.
A very flourishing market
A booming real estate market, Marrakech is attracting more and more investors. In addition to 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 on a cultural level, it offers many international events including sports competitions and film festivals. A very lively tourist city, Marrakech has luxurious hotels, designer 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. The Titular and traditional Properties guarantee reliable transactions. The first alternative is based on the British and French legal systems.
Foreign investors favored
Favoring foreign investors, Moroccan law allows you to buy all types of real estate including Riads. If you are not a resident, you are required to leave the country every three months. But you can easily obtain residency in this country.
Be careful, you must be 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 must be considered.
Good news, property taxes are much lower in Morocco. In addition, tax benefits 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 of up to 80% of the taxable base amount. One condition: rental income must be received in a Moroccan bank account.
Investing in a Riad in Morocco: the costs to expect
Acquiring a Riad in Marrakech is like buying a luxurious and historic property. Seduced by this traditional architecture, you will enjoy a unique experience in an authentic setting. Because they offer a very pleasant immersion in Moroccan culture, Riads are very popular with tourists. Thus, you can offer this property for rental.
The taxes and duties related to the purchase of a Riad in Marrakech are mainly made up of registration fees. As a general rule, they do not reach more than 10% of the price of the property. Added to this is the notarial tax of 0.5% and a payment of 1% intended for land conservation.
To determine the tax cost of a Riad, you must also consider the emoluments of 1% including VAT. Finally, do not forget to include brokerage fees if you use the services of a real estate agency.
Namely, untitled Riads (melkia) are subject to titling fees. To avoid paying taxes, 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, it is necessary to consider the location, the living space, the charm and the 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 :
Benefit from 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: the future income generated by the operation of the property can be taken into account for professional purposes)
In the context of a professional real estate loan intended to finance a property to rent, 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 torenovate or for sale in Marrakech. To seize the best opportunities and 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 accessible in the most beautiful neighborhoods of the ochre city.
