Investing in real Estate Rental in Marrakech : Profitability and Opportunities

A few tips to Invest in real Estate Rental in Marrakech : Profitability and Opportunities

Marrakech has established itself as a preferred destination for rental property investment.

Between flourishing tourism, population growth, and attractiveness in international, the red city provides opportunities for returns attractive.

Why Invest in real Estate Rental in Marrakech ?

1. A World Tourist Destination With more than 3 million visitors per year, Marrakech generates a constant demand for holiday rentals and short term.

2. A Growing Market The population of Marrakech rises by 2% per year, creating a strong demand for rentals long-term.

3. Of the Purchase Price Still Accessible Compared to other major european cities, the real estate marrakchi remains affordable with a high potential capital appreciation.

4. Tax Advantages Morocco offers a tax-attractive to foreign investors.

Yields on Rental by Property Type

Investing in Rental Property with an Apartment in the City Center (Long Term Rental)

• Purchase price : 800 000 – 1 500 000 DH
• Monthly rent : 4 000 – 7 000 DH
• Gross yield : 5-6% per year

Investing in Rental Property with a Riad in the Medina (Rental)

• Purchase price : 2 000 000 – 4 000 000 DH
• Average monthly income : 20 000 – 35 000 DH
• Gross yield : 8-12% per year

Investing in Rental Property with a Pool Villa (vacation Rental)

• Purchase price : 3 000 000 – 6 000 000 DH
• Average monthly income : 30 000 – 60 000 DH
• Gross yield : 10-15% per year

Investing in Rental Property with a Studio/Apartment Student

• Purchase price : 400 000 – 700 000 DH
• Monthly rent : 2 500 – 4 000 DH
• Gross yield : 6-8% per year

The Best Areas to Invest

For Seasonal Rentals :

• Medina (attractions)
• Wintering (luxury and prestige)
• Palm grove (high-end villas)

For Long Term Rental :

• Gueliz (high demand for expatriates)
• Agdal (students and young people are active)
• Targa (families)

Tax Aspects of the Rental Investment

Tax on Rental Income :

• Furnished rentals : 10% of gross income
• Rental bare : 15% after deduction of 40%

Property Tax :

• The annual fee varies according to the area and the area

VAT :

• 20% on the benefits of furnished rental with services

Manage Rental Property : Call the Professionals

Rental Management Services Swimmobilier :

• Tenant search and selection
• Drafting of leases and administrative management
• Rent collection
• Care and maintenance
• Tax returns
• Optimization of occupancy

Management fee : 10-15% of the rent collected

Strategies to Maximize Profitability

1. Choose the right location : Proximity to the amenities and attractions
2. Furnished vs. non-furnished : The furnished generally offers rents 30% higher than
3. Optimize taxation : Deduct the expenses and work
4. Maintain on a regular basis To preserve the value and attract quality tenants
5. Adjust the price in the market Comparative analysis regular

Pitfalls to Avoid

• Overestimate the occupancy rate of rental
• Neglect the costs of management and maintenance
• Buy without checking the legality of the property
• Under-estimate the charges of co-ownership
• Do not purchase insurance owner non-occupant

Conclusion

Investment rental Marrakech offers interesting opportunities for savvy investors.

Swimmobilier accompanies you in your project, from the acquisition to the rental management, to optimize your profitability.