The Comprehensive Guide to Buying Property in Marrakech and Morocco: What You Need to Know

Morocco, and especially the vibrant city of Marrakech, is becoming a top destination for real estate investment. From the allure of traditional riads to luxurious villas, there are many opportunities for property buyers. In this comprehensive guide, we'll explore the entire process of buying real estate in Morocco, with a special focus on Marrakech, one of the most sought-after property markets in the country.

The Real Estate Boom in Marrakech

Marrakech is currently experiencing a real estate bubble driven by factors such as the modernization of infrastructure and favorable tax policies for investors. The city’s unique charm, combined with these economic incentives, has created a thriving real estate market. Whether you are looking for a luxury villa, a high-end apartment, or a traditional riad, Marrakech offers diverse and exclusive property options that cater to a variety of tastes and budgets.

Overview of Property Prices in Marrakech

According to Bank Al-Maghrib's statistics, real estate prices in Marrakech have risen by 2% in early 2022. The city's property market is divided into several key areas, each with its own appeal and price range:

• Medina: Known for its traditional riads, property prices here vary widely. A riad needing renovation might cost around 8,000 Dhs/m², while a fully renovated one can reach up to 20,000 Dhs/m². New riads can be priced between 2 million to 10 million Dhs depending on size, with older riads sometimes available for as low as $200,000.
• Guéliz: This modern district, ideal for business and leisure, offers properties ranging from 10,000 Dhs/m² for older apartments to 18,000 Dhs/m² for newer, luxury properties.
• Hivernage: Catering to luxury lovers, property prices in this central area range from 15,000 Dhs/m² to 35,000 Dhs/m², reflecting the exclusivity of the neighborhood.
• Palmeraie: Once considered remote, this area now houses some of Marrakech's wealthiest residents. Property prices range from 8,000 Dhs/m² to 30,000 Dhs/m², offering peaceful living amidst palm groves.

Step 1: Finding the Perfect Property

Start by exploring online platforms like Mubawab, Avito Immobilier, and Sakan to browse listings that match your criteria. Hiring a local real estate agent can also be invaluable, especially in Marrakech, where the market is competitive, and understanding local nuances is key. Join real estate forums for additional insights.

Tips for Quick Property Search:

• Visit property offices directly if you find an interesting apartment.
• Use WhatsApp for communication, as it's widely used in Morocco.
• Consider biking around cities like Marrakech to avoid traffic and view multiple properties in a day.

Step 2: Scheduling Property Viewings

Organize your property visits efficiently by grouping them by location. Take into account the weather and traffic to avoid delays. During viewings, take notes, photos, and videos for future reference, and pay attention to the neighborhood and nearby amenities.

Key Considerations During Viewings:

• Check ownership status, outstanding taxes, maintenance costs, and utility availability.
• For riads or maison d'hotes, review business-related documents in addition to property papers.

Step 3: Conducting Due Diligence

Before committing to a property purchase, perform thorough due diligence. This includes reviewing legal documents such as the title deed, construction permits, and habitation permits. Engage a professional home inspector to assess the property’s condition. The notary will play a crucial role in verifying documents and ensuring the transaction's legality.

Importance of Legal Compliance:

• The notary, who acts as an impartial arbiter, will draft the sales contract and ensure all legalities are respected. This process aligns with the French legal system, making it familiar for European buyers.

Step 4: Negotiating the Best Deal

Negotiation is an essential part of the property buying process in Morocco. Research local market trends to make informed offers. Building a good relationship with the seller can be beneficial, as Moroccans value respect and positive interactions.

Effective Negotiation Tips:

• Start with a lower offer to leave room for negotiation but avoid being too aggressive.
• Highlight any property issues as leverage to justify a lower price.
• Consider negotiating on other terms if the price can't be lowered, such as including furniture or covering closing costs.

Step 5: Finalizing the Purchase

Once you’ve agreed on the sale terms, sign a preliminary contract and pay a deposit (typically 5-10% of the property value). The buyer is responsible for the legal and administrative costs, including notary fees and registration at the land registry (Conservation Foncière), totaling around 6.7% of the property price, including VAT.

Key Points About Legal and Administrative Costs:

• Additional fees of 1.3% apply for commercial properties like maison d'hotes, covering administrative processing for business assets.
• The seller is responsible for all related taxes.

Special Considerations for Marrakech

Renovated vs. Unrenovated Riads:

Most renovated riads come with a modern title deed, while unrenovated ones may have ownership recorded traditionally under Muslim law (Melkia). Modernizing these titles involves several steps, including signing a promise of sale contract and engaging a Muslim lawyer for verification. The notary then oversees the titling process.

Investment Incentives and Tax Benefits:

• Marrakech offers several tax exemptions to encourage property investment. For instance, owners of licensed guest houses benefit from a five-year tax exemption on foreign revenue.
• Lower council tax rates apply for new properties for the first five years.
• There is no inheritance tax on property, making Marrakech an attractive location for long-term investment.

Additional Factors Making Marrakech an Attractive Investment:

• Accessibility: Marrakech is just a short flight away from Europe, making it a convenient destination for frequent visits.
• Low Cost of Living: The cost of living in Marrakech is significantly lower than in Europe, which is appealing for both residents and tourists.
• Climate and Lifestyle: With over 300 days of sunshine a year, Marrakech offers an attractive lifestyle for those looking to escape colder climates. The city's cultural and artistic vibrancy adds to its allure.

Conclusion

Marrakech's real estate market offers numerous opportunities for both investors and individuals looking for a new home. From luxurious villas to charming riads, the city caters to diverse tastes and budgets. By following this comprehensive guide, you can navigate the property buying process confidently and make informed decisions. Whether you’re investing for personal use or rental income, Marrakech’s dynamic market and favorable investment conditions make it an ideal choice. Happy house hunting!