Investing in real estate in Morocco: 4 key questions before buying

Investing in real estate in Morocco means placing your money in a sector often considered a safe haven, offering a degree of security against economic fluctuations. This idea is partly true, but it needs to be qualified. Before embarking on such an investment, it is essential to fully understand all the aspects to consider in order to avoid unpleasant surprises and make informed decisions.

What is the liquidity of the asset you are buying?

The first question to ask yourself concerns the liquidity of the property. In other words: if you have an urgent need for cash, how quickly could you resell this property? Unlike other forms of investment, real estate doesn't always resell quickly. Unexpected events can occur at any time, so it's important to consider this factor when making your investment decision.

To assess the liquidity of an asset, several factors must be considered, such as the type of property (apartment, villa, land, commercial premises), the location and neighborhood, the orientation, the layout and floor plan, the condition of the common areas, the floor level, whether it is a condominium, and the reliability of the other owners. Beyond these aspects, the legal status of the property is crucial: an untitled property... land conservation, In addition to raising doubts among buyers, it is rarely accepted by banks for financing, which significantly reduces the number of potential buyers and slows its resale. Finally, public policies also play a role: for example, incentive programs for the purchase of new goods such as the program Daam Sakane can dampen demand for older properties, making resale slower or less advantageous.

In summary, to measure the liquidity of an asset, one must look at its physical characteristics, its environment, its legal status and the dynamics of the local market.

How can the value of an asset change over time?

Real estate does not automatically increase in value. Its value can stagnate or even decrease, especially in areas where demand is low or where infrastructure projects are slow to materialize. To estimate the actual evolution of a property, several factors must be taken into account:

  • Acquisition and registration fees (read our article on acquisition costs)

  • Annual taxes, such as property tax or housing tax

  • Costs related to maintenance and repairs

  • Condominium management fees for properties held in co-ownership

  • The tax on real estate profits upon resale (read our article on the ITC)

  • The total cost of credit if the property was financed by a loan

It is also essential to consider the impact of inflation over the investment period. Even if the price of the asset increases in dirhams, its real purchasing power may decrease if inflation rises faster than the asset's value.

A price in line with market reality

If the property is intended for rental, it is essential to assess its net rental yield. Several factors can influence this yield:

  • The risk of rental vacancy, that is, periods when the property remains without a tenant
  • Tenant turnover rate
  • Current charges and expenses related to property management
  • The evolution of rental yield over time

A good rental investment should offer a regular and stable income, while guaranteeing an attractive rate of return and constant occupancy of the property.

What are the alternatives to real estate?

Investing in real estate in Morocco involves tying up a significant sum of money for the long term. It is therefore useful to compare it with other options to understand the opportunity cost:

  • Savings accounts or mutual funds: easy to manage and very liquid, but often with modest returns.
  • Stocks or bonds: potentially higher returns, but with greater volatility and risk
  • Starting or developing a business: opening a business, launching a project or investing in an existing company
  • Training and career development: investing in recognized training or professional coaching to improve your skills and income prospects

Comparing these alternatives allows you to situate real estate within your overall investment strategy and to verify if this type of investment corresponds to your objectives and risk profile.

Before investing in real estate in Morocco, it is essential to have a clear understanding of the market, its rules, and its local dynamics. A property may seem attractive on paper, but only a comprehensive analysis—financial, legal, and economic—allows you to assess its true potential.

Investing in real estate in Morocco through a reputable property developer is one of the most effective ways to mitigate risk. These developers handle much of the preliminary work: market research, location selection, legal compliance, and ensuring the property's quality aligns with actual demand. In other words, they secure the project well before it goes on the market.

👉 To explore this point further, we invite you to read our article: Why buy from a reputable property developer?

On the Inmo platform, you can also view all of our new projects offered by recognized property developers.

The other option is to go through a professional real estate agency, which will help you navigate among the properties actually available on the market, compare opportunities and make an informed decision based on your profile and objectives.

👉 Find the lList of partner real estate agencies directly on the Inmo platform.