5 good reasons to invest in a riad in Marrakech
3 July 2022
Vous cherchez à investir à l’étranger, mais vous ne savez ni quoi ni où ? Pourquoi ne pas tenter l’aventure en investissant dans un riad à Marrakech ? Ces bijoux d’architecture n’attendent plus que vous pour y vivre ou pour les louer aux milliers de touristes qui foulent chaque année la terre de la ville rouge. Un marché à prendre ! On vous le prouve avec ces cinq arguments.
An attractive city where life is good
Dating from the Berber empire, the ancient imperial city has lost none of its superb. Today populated by more than 1.3 million inhabitants, it has become a major economic centre with its medina, lined with mosques and gardens. Dynamic night and day, the ochre city is full of shops and restaurants, not to mention its festive souks where all forms of art are present.
You will know that despite the social and economic setbacks, it retains its oriental architecture of yesteryear. Not content to offer an ideal climate, it is home to cultural gems such as its palm grove, its ramparts and especially its minaret of the Moorish mosque of Koutoubia. Its history is precious and the city brilliantly mixes traditions and modernity.
Although it is twice the size of Paris, it is still almost half the population, making it a large and breathable city. Its cosmopolitan and welcoming population will greatly facilitate your efforts and integration, whether you decide to stay or not.
Growing tourism
This destination is very popular and inexpensive, especially for weekends or holidays out of season, when looking for the sun at all costs. Yes! The medina, a charming medieval town filled with beautiful colourful stalls, highlights Moroccan creativity through its handicrafts. Thousands of travellers travel every year just for a ride.
You may not know this, but the Red City has been named the winner of the Best International MICE Tourism Destination, which is business tourism. Don’t neglect the annual sporting or cultural events: FIFM, international golf tournaments, WTCC, festivals, art exhibitions, etc. Enthusiasts will not hesitate to travel miles to attend their favorite events. Another population is likely to be part of your clientele: students, local or foreign. Because Marrakech is one of the most requested university cities in Morocco with its local university, but also its French schools. All this tourist attraction is therefore a boon for the market of riads which is able to accommodate tourists, in seasonal rental.
Safety and proximity
Contrary to prejudices, Marrakech is known to be safe. Despite an unjust penalty following the attacks, Morocco, and especially the ochre city, has been experiencing a stable political environment for many years. The kingdom puts everything in place to guarantee the safety of its citizens and tourists. So rest assured that your activities in the Red City are running smoothly. You will thus meet regularly police militias monitoring the surroundings even if most of the time they mix discreetly with civilians.
It is also a city that has the advantage of being perfectly located. Its proximity to Western powers makes it both a gateway to the rest of Africa and an obligatory channel to Europe. Only a few hours away from capital cities by plane, this city is a top destination thanks to regular and cheap flights. The Casablanca-Marrakech motorway facilitates the journey for the Casablancais who regularly invest in Marrakech. Result: short or long-term tourism, business trips, stopovers, all pretexts are good to stop in Marrakech and stop in a riad.
A favourable real estate market
Real estate is a very promising market in this region. Every week, new projects are born, whether they are industrial, cheap or luxury. And yet, it never runs out of steam. Like upscale residences and golf courses, riads have the wind in their sails. Everything is done for it to expand further, as evidenced by the modernity of the infrastructures for some years: big works are carried out, both in the supply of water and electricity, and in technologies such as telephone networks and broadband Internet. The roads have been renovated and most are now paved, widened and secured.
Since 2019, the Marrakchi building market has been on the rise with more and more foreign buyers in particular. Thus, the ranges of buyers are very varied ranging from the average budget (100 k to 300 k) to the luxury investment (1000 k for some guest houses). The advantage of this market is that it is very qualitative, offering a wide range of goods at competitive prices.
Tax benefits
Investment means tax optimisation. That’s a good thing, because Morocco has all kinds of economic advantages. For starters, there is no wealth tax, so you will not pay it if you are a Moroccan tax resident or if the tax treaty between Morocco and your country targets the IFI. This is not the case in France. Its investment policy is particularly interesting, especially in the case of retirement, since it allows a large number of exemptions and tax reductions, under certain conditions. Examples include a 2.5% reduction in registration fees after the purchase of an immovable and a 50% reduction in corporation tax during the first five years of the fiscal year, as well as an exemption from the tax on real estate profits and capital gains. Similarly, in Morocco you don’t pay inheritance tax.
Finally, we must not forget that this Moroccan city has many free trade agreements with world economic powers, especially France and African countries. This further strengthens the attractiveness of its market for foreign investors.
You will have understood, investing in a riad in Marrakech presents rather convincing profits. Quality customers, tax advantages, stable environment, there is nothing to hesitate about. So, will you seize this opportunity?