CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 


Financial Overview

Directory

Property Search

Global Statistics

Regional Statistics


Sep 12, 2011

Morocco: the bottom has fallen out of the riad market


Last Updated: Sept. 12, 2011
MARRAKECH - Apartments COST ($) YIELD (p.a.) PRICE/SQ.M. ($)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 97,850 654 8.02% 1,957 13.08
85 sq. m. 156,400 870 6.68% 1,840 10.24
120 sq. m. 252,120 1,280 6.09% 2,101 10.67
200 sq. m. 466,200 2,302 5.93% 2,331 11.51
MARRAKECH - Riads
120 sq. m. 276,360 n.a n.a 2,303 n.a
180 sq. m. 426,060 n.a n.a 2,367 n.a
250 sq. m. 530,500 n.a. n.a. 2,122 n.a.
500 sq. m. 948,500 n.a n.a 1,897 n.a
CASABLANCA - Apartments
75 sq. m. 125,700 904 8.63% 1,676 12.05
120 sq. m. 219,960 1,247 6.80% 1,833 10.39
200 sq. m. 394,000 2,586 7.88% 1,970 12.93
CASABLANCA - Houses
300 sq. m. 633,000 2,859 5.42% 2,110 9.53
600 sq. m. 1,938,400 n.a. n.a. 2,423 n.a.
Districts researched
Marrakech: Gueliz, Palmeraie, Hivernage, Medina, Semlalia
Casablanca: Hopitaux, Gauthier, Ain Diab, Anfa, Californie, Belvedere, Bourgogne, Oasis
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Prices of Riads in Marrakesh have fallen significantly over the past year, and a price of US$2,000 per square metres (sq. m.) is now typical (in mid 2009 astronomical prices equivalent to US$3,000 were being asked, sometimes up to US$4,000). A 500 sq m. riad which might then have sold for the equivalent of US$1.5 million would now fetch US$1 million.

The riad market was foreign-oriented. It over-reached itself and suffered an overblown speculative frenzy. Then the crisis hit and the ‘rich money’ left town. In contrast, prices of apartments in Marrakesh have stayed virtually unchanged, at around US$2,000 per sq. m. The same is true in Casablanca.

Gross rental yields in both Marrakesh and Casablanca are moderately attractive at between 5.5% to 7.3%, with an outlier in Casablanca ,where small apartments (70 sq. m.) can give gross rental yields of 9%.

 




Comments


Be the first to comment on this article!



Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.



Compare Countries

Overseas real estate mortgage

Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.


Email Address:





Connect to professional advice in Morocco



PROPERTY RECOMMENDATIONS

 
Download free Global Property Guide reports Sponsor a property investment report

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions
Chinese property buyers and Asian buyers, there is great property for high net worth Chinese buyers on Juwai.com

Which parts of the world are most attractive for property investment today?

Click here to download our FREE Property Recommendations Reports!

Close Me