Investment Property in Marrakesh

Investment Real Estate in Marrakesh

Marrakesh property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Marrakesh .

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Search Map of Marrakesh Investment Real Estate

Marrakesh ( or /ˌmærəˈkɛʃ/; Arabic: مراكش‎, romanized: murrākuš; Berber languages: ⴰⵎⵓⵔⴰⴽⵓⵛ, romanized: amurakuš) is the fourth largest city in the Kingdom of Morocco. It is the capital of the Moroccan region of Marrakech-Asfi. It is west of the foothills of the Atlas Mountains. Marrakesh is 580 km (360 mi) southwest of Tangier, 327 km (203 mi) southwest of the Moroccan capital of Rabat, 239 km (149 mi) south of Casablanca, and 246 km (153 mi) northeast of Agadir.

The region has been inhabited by Berber farmers since Neolithic times. The city was founded in 1070 by Emir Abu Bakr ibn Umar as the imperial capital of the Almoravid Empire. The Almoravids established the first major structures in the city and shaped its layout for centuries to come. The red walls of the city, built by Ali ibn Yusuf in 1122–1123, and various buildings constructed in red sandstone afterwards, have given the city the nickname of the “Red City” (المدينة الحمراء) or “Ochre City” (ville ocre). Marrakesh grew rapidly and established itself as a cultural, religious, and trading center for the Maghreb and sub-Saharan Africa. Jemaa el-Fnaa is the busiest square in Africa.

After a period of decline, the city was surpassed by Fez, but in the early 16th century, Marrakesh again became the capital of the kingdom. The city regained its preeminence under wealthy Saadian sultans Abdallah al-Ghalib and Ahmad al-Mansur, who embellished the city with sumptuous palaces such as the El Badi Palace (1578) and restored many ruined monuments. Beginning in the 17th century, the city became popular among Sufi pilgrims for its seven patron saints who are entombed here. In 1912 the French Protectorate in Morocco was established and T’hami El Glaoui became Pasha of Marrakesh and held this position nearly throughout the protectorate until the role was dissolved upon the independence of Morocco and the reestablishment of the monarchy in 1956. In 2009, Marrakesh mayor Fatima Zahra Mansouri became the second woman to be elected mayor in Morocco.

Marrakesh comprises an old fortified city packed with vendors and their stalls. This medina quarter is a UNESCO World Heritage Site. Today it is one of the busiest cities in Africa and serves as a major economic center and tourist destination. Tourism is strongly advocated by the reigning Moroccan monarch, Mohammed VI, with the goal of doubling the number of tourists visiting Morocco to 20 million by 2020. Despite the economic recession, real estate and hotel development in Marrakesh have grown dramatically in the 21st century. Marrakesh is particularly popular with the French, and numerous French celebrities own property in the city. Marrakesh has the largest traditional market (souk) in Morocco, with some 18 souks selling wares ranging from traditional Berber carpets to modern consumer electronics. Crafts employ a significant percentage of the population, who primarily sell their products to tourists.

Marrakesh is served by Ménara International Airport and by Marrakesh railway station which connects the city to Casablanca and northern Morocco. Marrakesh has several universities and schools, including Cadi Ayyad University. A number of Moroccan football clubs are here, including Najm de Marrakech, KAC Marrakech, Mouloudia de Marrakech and Chez Ali Club de Marrakech. The Marrakesh Street Circuit hosts the World Touring Car Championship, Auto GP and FIA Formula Two Championship races.

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The financial stability of Marrakesh has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Marrakesh

Renting out your Marrakesh buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Marrakesh are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Marrakesh and be prepared to change your initial outlook.
Thoroughly research the Marrakesh location with a special emphasis on fringe areas outside the main Marrakesh metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Marrakesh.
Ensure that your target investment property in Marrakesh appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Marrakesh properties yourself is an easy option, but are these savings justifiable when you run into Marrakesh red tape? Physis Realty Marrakesh office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Marrakesh buy-to-rent sector.

With our expert guidance, investing in Marrakesh provides the secure knowledge that your money is working harder than it would in a local Marrakesh bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Marrakesh, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Marrakesh property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Marrakesh

Flipping property in Marrakesh

Flipping property is when we advise clients to buy a Marrakesh property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Marrakesh market has a time to react to the renovation.

The Flipping Strategy in Marrakesh

Investment property flipping in Marrakesh is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Marrakesh real estate investments are sometimes referred to by professionals as ‘distressed’ Marrakesh real estate.

What is distressed Marrakesh property:

Marrakesh property in need of renovation
Marrakesh real estate with a change of purpose and use
Oversold Marrakesh property
Bank repossessions in Marrakesh

Put simply, long term investors in Marrakesh purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Marrakesh investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Marrakesh property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Marrakesh use a minimum profit value of 22% when looking at potential Marrakesh projects. The reason for this is because there are lots that can go wrong in Marrakesh property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Marrakesh

For luxury property investors hoping to add a superb property in Marrakesh to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Marrakesh, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Marrakesh should be entrusted to only the highest-quality agency.

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