Rental yield in Marrakech:
long-term or short-term letting?

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In Marrakech, everything turns on tourism. The same property can earn twice as much depending on whether you let it by the year or by the night. Here is how to navigate that, district by district. By Morgan Richez, co-founder of Morgan & James Real Estate Agency

In Brief

4% to 6% on long-term lets, up to 9% on short-term.

This is what makes Marrakech unique. Let conventionally by the year, a property returns 4% to 6% gross. Let as a short-term tourist rental, a riad or a villa with a pool can reach 8% to 9% gross. But short-term letting demands intensive management and carries real vacancy.

Which Marrakech districts offer the best rental yield?

Indicative gross yield ranges by district. For the tourist areas, these assume a well-managed short-term rental.

District	Dominant property type	Gross yield	Profile
Gueliz	Apartments, modern centre	5 – 6.5%	Long-term and short-term rental
Hivernage	Upscale homes, close to the hotels	4.5 – 6%	Premium, short-term
Medina	Riads	6 – 9%	Short-term, intensive management
Palmeraie	Villas with pools, resorts	5 – 8%	Luxury, short-term
Targa / Semlalia	Family apartments	4.5 – 6%	Residential, long-term
Amelkis / golf courses	High-end villas	5 – 7%	Short-term, affluent clientele
Route de Casablanca / Massira	Affordable apartments	5 – 6.5%	Long-term, lower prices

Morgan & James Real Estate benchmarks, Marrakech market. Gross ranges before charges and taxation.

What is the average rental yield in Marrakech?

Gross rental yield measures annual rent against the purchase price, as a percentage. In Marrakech, it depends above all on how you let: 4% to 6% on a long-term tenancy, more on short-term.

The city lives on tourism. That changes everything. An apartment in Gueliz let by the year follows the conventional logic. A riad in the Medina or a villa in the Palmeraie, let by the night, plays in a different league of returns, and of constraints.

The headline gross figure on a short-term listing can look wonderful. Always look at the real occupancy rate across the year. That, rather than the nightly rate, is what determines the true yield.

How do you calculate the net yield on a Marrakech property?

Net yield is what genuinely stays in your pocket: annual rent less charges, taxes and vacancy, measured against the purchase price including acquisition costs.

Gross is useful for a quick comparison. Net is what you decide on. It is the only figure I look at before advising a client to buy.

GROSS YIELD

(Annual rent ÷ Purchase price) × 100

NET YIELD

(Annual rent − charges − taxes − vacancy) ÷ (Price + acquisition costs) × 100

A worked example. An apartment in Gueliz at 1,400,000 MAD, let at 7,500 MAD per month on a long-term tenancy. Annual rent: 90,000 MAD. Gross yield: 6.4%. After charges, taxes, vacancy and acquisition costs, the net figure lands around 4.8% to 5.2%. With short-term rental, the same property can aim higher, but with very different management demands and vacancy.

For a tourist property, never reason from the nightly rate. Multiply it by the number of nights genuinely let across the year, deduct the management costs, and you have the real yield.

What does buying cost, and how is rental income taxed?

Acquisition costs

Buying a property in Morocco generally costs 6% to 7% of the price in fees.

These cover registration duties, land registration with the ANCFCC and the notary’s fees. On a new-build bought off-plan (VEFA), the fee structure differs slightly, and reduced duties sometimes apply.

Tax on rental income

Rent received is subject to income tax, under a regime specific to rental income.

Reduced rates apply, along with a temporary exemption for new-build properties in their first years. The owner remains liable for the municipal services tax, and for the housing tax depending on how the property is used. On resale, any gain falls under the tax on property profits.

A word from experience: build the tax position into your yield calculation from the outset. A property that looks profitable on paper can shed a full point once income tax and local taxes are accounted for.

Short-term or long-term rental in Marrakech?

Short-term tourist letting, whether a riad or a villa, produces the highest gross yield in Marrakech, but it demands daily management and carries pronounced seasonality.

A well-run riad in the Medina or a villa with a pool in the Palmeraie can post 8% to 9% gross. You have to factor in the cleaning, the guest reception, the platform commissions and the quiet months. Tourist letting also requires proper registration and declaration.

A long-term tenancy in Guéliz or Targa earns less, around 5%, but it runs itself. For a remote investor who wants peace of mind, it is often the wiser choice.

Frequently asked questions

Is short-term letting genuinely more profitable in Marrakech?

On paper, yes: a well-run riad or villa can double the return of a conventional tenancy. But it all comes down to the real occupancy rate and the quality of the management. Badly run, a short-term rental earns less than an unfurnished let.

Should I buy a riad in the Medina?

A riad appeals to tourists and lets well by the night. It is also a demanding asset: upkeep, renovation, daily management. Buy one with your eyes open, and with a realistic estimate of occupancy.

What budget do I need to invest in Marrakech?

An apartment in Gueliz starts considerably lower than a villa in the Palmeraie. Add acquisition costs of 6% to 7%, and a reserve for furnishing if you are targeting short-term letting. We cost the full plan out with you.

Can a tourist rental be managed remotely?

Yes, provided you delegate. We handle guest reception, cleaning, listings and maintenance for owners who live abroad. It is essential if you want to sustain a good occupancy rate.

Marrakech is a market apart, where the choice between long-term and short-term letting makes all the difference. Every figure on this page comes from real transactions we handle in the ochre city.

Let's talk about your Marrakech project

Tell us your budget and your target return. We will prepare a costed selection of properties for you, net of charges and tax, within a few days.

Telephone:
+212 6 32 62 58 72

Email : contact@morganjames.ma

Address :
1 rue Haroun Errachid, Hivernage 40000 Marrakech, Morocco

Morgan & James Real Estate

The yields and ranges shown are market benchmarks provided for information only. They do not constitute investment advice or personalised tax advice. Tax rates and fees are subject to change. Consult a notary or a chartered accountant regarding your own situation.