Marrakech attracts buyers every year from France, Spain, the Gulf, and increasingly from sub-Saharan Africa. The market has recovered well from post-covid fluctuations and shows strong demand in 2026, driven by luxury tourism and high-end new developments. But 'investing in Marrakech' covers very different realities depending on the neighborhood. Here is how to read the market.
The Medina: high rental yield, but demanding management
The Medina remains the playground for exceptional riads and high-end guest houses. Gross yields on a well-managed short-term rental can exceed 8% to 10% per year — a figure hard to match elsewhere in Marrakech. But this yield comes with a price: management is time-consuming, technical constraints are real (access, renovation, title deeds), and competition on platforms like Airbnb has intensified.
For an investor looking for a hands-off asset, the Medina is not the right choice. However, for someone wanting a lifestyle project — turning a riad into a guest house or keeping it as a second home with partial rental — it is the most distinctive option. Entry price: from 1.5M MAD for a small property to renovate.
Gueliz: the most liquid market
Gueliz is the modern city center of Marrakech — boutiques, restaurants, European-style buildings. This is the neighborhood with the strongest long-term rental demand: expats, multinational corporate managers, and wealthy Moroccan families. A well-placed 2-bedroom apartment rents for between 8,000 and 14,000 MAD per month.
Purchase prices for new builds range from 12,000 to 18,000 MAD/m² for well-located recent projects. Net rental yields hover between 4% and 6% — lower than the Medina, but with much simpler management and steady capital appreciation. It is the safest neighborhood for a first investment in Marrakech.
Hivernage: luxury, Marrakech-style
Hivernage is the district of major hotels (Mamounia, Sofitel, Four Seasons), gated residences, and affluent villas. The market here is less liquid — transactions are rare and prices are high — but luxury properties always find buyers among a highly targeted international clientele.
Villas with pools in secure Hivernage residences trade between 5 and 15 million MAD. Standing apartments in recent residences list at 15,000 to 22,000 MAD/m². This is a niche market, suitable for an investor with significant capital and a long-term horizon.
The Palmeraie: wide spaces, but caution on liquidity
The Palmeraie charms with its pool villas, palm groves, and end-of-the-world feel just 10 minutes from the center. Historically sought after by expats and European buyers seeking a personal villa, it has suffered in recent years from liquidity issues: properties take longer to sell and long-term rental demand is lower than in the city center.
Nevertheless, for a luxury second home with a garden and pool — used a few weeks a year and rented out seasonally the rest of the time — the Palmeraie offers an unmatched setting in Marrakech. Budgets start at 2.5M MAD for an entry-level villa.
Agdal and Targa: value for money in rentals
Agdal and Targa are the rising residential areas. Less glamorous than Gueliz or Hivernage, they attract local clients and upper-middle-class Moroccan families. Rental demand is strong and stable, new builds are of decent quality, and prices are still accessible: between 9,000 and 13,000 MAD/m².
For an investor looking for pure rental yield with simple management, Agdal is probably the best risk/reward ratio in Marrakech in 2026. Vacancy rates are low and tenant profiles (civil servants, teachers, managers) are relatively stable.
Our market outlook for 2026
The Marrakech market is two-speed. On one hand, the premium segment (exceptional riads, Palmeraie villas, Hivernage residences) continues to attract international buyers and maintains its prices. On the other hand, the mid-range market is experiencing a slight correction in some new builds that are poorly located or too far from amenities.
Our advice: stick to high-liquidity neighborhoods (Gueliz, Agdal) if your priority is resale in the medium term. Choose the Medina or Hivernage if you have a 10-year horizon and a clear heritage goal. And in any case, avoid cheap projects on the outskirts — rental demand just isn't there.
Kamal Alami
Real Estate Investment Expert — Morocco
