Are you considering investing in real estate in Marrakech? The first thing to do is to find out about the terms of access to property in this Moroccan city. Discover all the answers to your questions in this guide of real estate buying in Marrakech
What is the price of real estate in Marrakech in 2024?
In Marrakech, the real estate market is booming. In just a few years, prices per square meter have exploded. This increase concerns beautiful villas, luxurious Riads and bright apartments.
Traditional Moroccan houses on one level or two floors, the Riads are located in the medina for the most part. Their price varies depending on the location, the living space, the condition of the property and the materials used for its construction.
With the rise in prices, buying a Riad to renovate is now more expensive. Professionals in the sector affirm that the properties to be modernized, currently available, display prices similar to those of Riads renovated a few years ago.
years.
Today, it is impossible to define the average price of a Riad with precision. This amount varies from 70,000 to several million euros. We mentioned previously, a set of elements impact the value of these superb houses
traditional Moroccan cuisine.
What types of real estate can you buy in Marrakech?
In this particularly attractive tourist town in terms of real estate investment, you can acquire different types of property.
Riads are very popular with Western investors. These traditional Moroccan houses are brimming with charm. Offering an authentic decor, their typical architecture immerses you in Moroccan culture. Often spacious, these residences have large kitchens, large 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 turn to penthouses and apartments located in closed and secure residences. It is in the most popular neighborhoods that they find the best opportunities. Modern and equipped with high-end equipment, the buildings in the center of Marrakech offer magnificent views of the red city and the Atlas Mountains.
With particularly spacious living rooms, the villas and Riads offer total areas ranging from 100 to 300 square meters. New apartments generally do not exceed 150 square meters.
In addition to tax advantages, real estate investment in Marrakech is advantageous in terms of quality. Whatever their location and surface area, the properties have been built with high-quality and durable materials. Guarantors of a level of comfort
high, they only require some renovation work when it comes to old villas. The results obtained are often breathtaking!
A simple and straightforward procedure
Rest assured, buying real estate in Marrakech is not very complicated. The most difficult thing will be to find the rare pearl because the procedure does not pose any particular difficulty.
First thing to know: many Riads and villas belong to foreign investors. Holders of modern land titles, these Westerners, for the most part, sell these goods to other non-Moroccan buyers.
A land title is granted after verifications. These irrefutable property papers are verified by a notary before the sale is finalized. Among them: the residence permit, the title, the building permit and the authorized plans. For guest houses, the notary also checks the company papers.
If everything is in order, the sales contract can be drawn up. Namely, sales contracts in Marrakech are similar to French sales contracts.
Costs related to the purchase of real estate in Marrakech
When purchasing real estate in Marrakech, both the buyer and seller must pay fees. The first is responsible for the legal and administrative costs linked to the purchase of the property, land conservation and registration of the sales contract. The sum of notary fees, change and registration of the title deed represents 6.7% of the value of the property including VAT.
If you buy a Riad to turn it into a hotel or guest house, a tax component is added for the goodwill. Note that many Western investors buy housing in the red city to rent it out.
In return, the seller of the property takes care of all taxes.
Please note that real estate agency fees in Marrakech are shared between the two parties. They do not represent more than 2.5% of the value of the property.
A particularly attractive investment
In Morocco, the authorities promote tourism and foreign investors. To encourage private investment, 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. The following five years, you will benefit from an income tax reduction. And that’s not all, the Moroccan authorities offer very advantageous conditions in terms of property taxes.
If you plan to buy a villa in Marrakech with the aim of settling there and becoming a resident, you will also benefit from significant advantages:
- 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 the context of a real estate transaction in Morocco?
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.
What contribution does it take to obtain a real estate loan 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 property title to avoid any risk of land dispute
Contact a specialist real estate agency to review legal documents and building permits
Make sure that building permits comply with current standards. In the event of an inaccurate permit, an upgrade is required and results in additional costs.
Beware of fluctuations in the real estate market in the Ocher City. Considering this criterion is essential to ensure the profitability of such an investment.
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.