Investing in luxury real estate in Marrakesh can be attractive in many ways, as the Moroccan metropolis has countless advantages. The city has witnessed in recent years numerous urban and hotel construction projects and luxury residences carried out by renowned and upscale hotel groups such as Ritz-Carlton and Four Seasons to name a few. Unmissable for the unforgettable holidays it offers, the city with its colorful alleys is full of numerous historical and architectural monuments which make it a destination where life is good. Finally, the city attracts affluent customers with its highly reputed golf course offering, making it the essential golf capital.
Whether you are looking to make an investment in your main or secondary residence or if you intend to rent your property, there are many opportunities on the “red city” market.
Why invest in a luxury residence in Marrakesh?
The real estate market in Morocco is booming and with the presence of more and more foreign buyers, the main cities of the country are now emerging as destinations popular with luxury tourism. A high sunshine rate, proximity to major French and European airports and magnificent sandy beaches make Marrakech the perfect place for an investment in luxury apartments or residences.
Prices have corrected their constant rise after the economic crisis of 2010 and prices per square meter have become much lower than those we know in our major French and European cities. The city offers opportunities to buy riads, apartments or luxury villas at a lower cost. It is important, before making the decision to proceed with the acquisition of a property in Morocco to analyze several points such as the choice of destination, the importance of being accompanied in its procedures and Moroccan taxation.
You will find below 3 tips to help you make your decision by focusing on your choice of destination for your project, the people with whom you approach to complete all your formalities of research and purchase, and the rules regarding taxation in Morocco.
Choice of the destination
Before concretizing your project of acquisition of your luxury residence, your riad or high-end apartment in this destination, it is advisable to ask yourself the question of the reason which made you choose this city. It is important not to give in to a sudden temptation that would follow a successful trip making you fall in love with the Moroccan city. Living all year round in a city and country you don’t know well can be less pleasant than expected.
If, on the contrary, you are looking for a rental investment, be careful to protect yourself from a fashion effect caused by the tourist boom making the city an essential destination. Ensure the sustainability of the situation for your establishment. The riad market has, for example, been booming in recent years thanks to the publicity of acquisitions made by famous personalities among artists, industrialists and politicians. You find exoticism 2 hours by plane!
The spotlight on this region of Morocco is helping to boost the luxury real estate market and the numerous offers bear witness to this. It is therefore important to make a careful selection of goods, paying attention to the environment, the neighborhood, the possibility of parking your vehicle or noise pollution day or night.
To be accompanied
When you have made the decision to acquire a luxury residential property in Morocco, it is important to protect yourself against the practices and sales habits of local players. First, you have to make the choice to enlist the services of a real estate agent or real estate agency. In fact, these professionals perfectly master the mechanisms and cogs of the local market and will avoid you the pitfalls in which you could find yourself. For example, you should know that a lot of properties for sale in Morocco do not have title deeds, which can lead to risks or poor workmanship after the date of your purchase.
For a controlled investment in a luxury residence or villa, the key word is patience, because avoiding any precipitation guarantees that you will be protected from possible future disappointments. Indeed, in the Medina, many properties for sale are old and even if you have decided to have work done, you could quickly be discouraged by the discovery of cracks or major plumbing problems endangering the building integrity. Finally, avoid making your purchase off plan, the delivery of goods on paper can reveal surprises when you enter the premises.
Do not hesitate to be accompanied by an architect or a professional from the old local.
Although the prices per square meter of luxury real estate in the city remain more attractive than in Europe or France, it is essential before making your purchase to look at the tax rules in force in the country. The advantages of Moroccan taxation for foreign investors are numerous. First, you must take into account the facilities for reselling your property and especially the consequences that may impact your taxation. Certain tax treaties guarantee the transfer of products or capital gains, while others avoid double taxation thanks to agreements with certain countries. Do not hesitate to be assisted by a tax advisor specialized in real estate acquisitions in Morocco.
Finally, any acquisition is subject to notarial rules for registration fees, property contributions or notary fees. Consider incorporating all of these taxes into your budget, they can represent up to 10% of the amount of your purchase. There are many traps to avoid when you want to invest in luxury real estate in Marrakech and it is therefore essential to be methodical and vigilant for a serene realization of your project.