Marrakech Riad Prices Plunge 40% as Tourism Slump Hits Morocco’s Real Estate Market

Currently, sales are difficult in the small guesthouse market - family-run operations of five to seven rooms, said Colin Bosworth, owner of the real estate agency "Bosworth Property" in Marrakech, to the American newspaper The New York Times, explaining that the lack of tourism has led to price drops of 30 to 40%. However, "prices remain stable, as the interest of European buyers has increased considerably," said Maud Faujas, director of the Emil Garcin real estate agency in Marrakech, noting that the prices of riads in the Marrakech medina start at 250,000 euros and could constitute a reliable source of rental income.

"Even a small accommodation that you can rent for 200 to 250 euros per night is the best thing to buy as an investment," she added. As for the prices of villas located on the 15 18-hole golf courses around Marrakech, they range between 500,000 euros and around 1 million euros. Maud Faujas also said that the prices of the sumptuous houses in the suburbs start at around 3 million euros.

The foreign buyers are mostly Europeans. The French are in the lead. "We are three hours from Paris and Geneva, and two hours from Madrid," said Colin Bosworth. More recently, investors from Mexico, Singapore and the United States have expressed interest, knowing that European tourists are likely to invade Marrakech once the pandemic has subsided, he added. For Maud Faujas, two decisions have generated enthusiasm among Moroccan Jews living elsewhere, who wish to buy vacation homes in the ochre city. These are Morocco’s decision to normalize its relations with Israel and the planned launch of direct flights between the two countries.