Marrakesh, known for its rich cultural heritage and captivating landscapes, remains a hotspot for real estate investment. In 2024, the city’s property market showcased a mix of challenges and opportunities, with fluctuating demand, varied pricing, and shifts in investment patterns.
Market Performance in 2024
The Moroccan real estate market faced hurdles in 2024, with the Real Estate Asset Price Index (IPAI) declining by 0.4% year-on-year. Residential property prices dropped by 0.5%, while commercial properties saw a 0.9% reduction. Marrakesh, in particular, recorded a 0.5% dip in property prices and a striking 53.5% fall in sales volumes during the third quarter alone [1].
Despite these overall declines, certain segments in Marrakesh displayed resilience. The Palmeraie district, famous for its luxury villas and serene environment, continued to attract high-end buyers, with properties there priced about 20% higher than the city average [2].
Supply and Demand Dynamics
A defining trend in 2024 was the imbalance between supply and demand. The availability of apartments dropped by 10.46%, while demand surged, especially for units under 80 square meters. These smaller apartments accounted for over half of buyer interest, leading to price increases in sought-after neighborhoods [3].
In Marrakesh, supply contracted further, with an 8% reduction in available apartments, even as demand for them rose by 42%. Similarly, interest in villas increased by 20%, reflecting the city’s ongoing appeal to both local and international buyers [4].
Key Influencing Factors
Several factors shaped Marrakesh’s real estate landscape in 2024:
- Tourism Recovery
After the 2023 earthquake, tourism rebounded significantly in Marrakesh, with visitor numbers increasing by 20% year-on-year. This resurgence boosted demand for short-term rental properties, especially in central and tourist-friendly areas like Medina and Gueliz [5]. - Foreign Investment
The city’s blend of traditional charm and modern luxury attracted a growing number of international investors, particularly in the upscale property market. High-net-worth individuals continued to view Marrakesh as a prime location for vacation homes and retirement properties. - Economic and Regulatory Landscape
Morocco’s GDP grew by 3% in 2023, but economic uncertainties, coupled with rising construction costs, weighed on the real estate sector’s growth. Additionally, changes in property taxation and zoning laws created challenges for developers and buyers alike [6]. - Sustainability Trends
Increasing awareness of climate change and sustainability influenced buyer preferences. Developers began prioritizing energy-efficient and eco-friendly designs, which appealed to a growing segment of environmentally conscious investors.
Outlook for 2025
The outlook for Marrakesh’s real estate market in 2025 is cautiously optimistic. Experts predict a gradual increase in property prices, driven by:
- Enhanced infrastructure projects, including better transportation networks.
- Continued recovery in tourism, particularly as international travel becomes more accessible.
- Steady foreign investment, especially in luxury real estate .
That said, potential challenges include global economic fluctuations, shifts in regulatory policies, and the need to address climate-related risks. Investors must adopt a strategic approach, focusing on high-demand areas and properties that align with market trends.
Marrakesh’s real estate market, despite its hurdles, remains an attractive option for investors. The city’s unique charm, coupled with evolving market dynamics, ensures its place as a prominent player in Morocco’s property sector. For those considering entering this market, staying informed and partnering with local experts will be key to making sound investments.
