This shift in the rental market is taking place against a backdrop of exceptional tourism performance. Morocco has posted record-breaking numbers that are redefining the rules of real estate investment.

Read for better context: “Is Morocco Really Breaking Tourism Records in 2025?”

With 28.7 million overnight stays recorded in 2024 (+12% vs 2023) and 17.4 million tourists, Morocco is undergoing a deep transformation of its rental market. The surge in tourism demand is redefining the balance between traditional rentals and short-term vacation rentals, creating new economic opportunities — but also unprecedented social tensions.

The observed increase in the average length of stay is intensifying pressure on rental supply and radically transforming landlords’ strategies.

Positive Impacts: The Golden Age of Short-Term Rentals

Exceptional Rental Yields

Short-term rental profitability has reached historic levels in 2025. In prime tourist destinations like Marrakech, Agadir, and Essaouira, annual yields frequently exceed 12–15%, compared to 4–6% for long-term leases. This performance is supported by strong occupancy rates, fueled by MAD 54 billion in tourism revenue in the first half of 2025 (+9.6%).

Diversified Rental Income

The internationalization of Moroccan tourism ensures a diverse clientele year-round. French visitors increased by 14% in June 2025, alongside growing numbers from the UK, the U.S., and the Middle East — allowing property owners to stabilize revenue across all 12 months.

Professionalization of the Sector

The tourism boom is accelerating the professionalization of short-term rentals. The emergence of specialized agencies, concierge services, and tech platforms is enhancing service quality while optimizing returns.

 

Negative Impacts: The Challenges of Tourism-Driven Gentrification

Displacement of Traditional Tenants

The large-scale conversion of housing into short-term rentals is causing a shortage of long-term rental supply. In the medinas of Marrakech and Fez, many long-term residents are being pushed out in favor of more profitable tourist clientele. This “tourist gentrification” is fragmenting local communities.

Rising Residential Rents

The demand surge from tourism is also driving up prices for traditional rentals. Landlords are increasingly setting prices based on the potential profitability of short-term leasing, making it harder for Moroccan tenants to keep up with rent increases.

Erosion of Urban Social Fabric

The transformation of entire neighborhoods into tourist hubs is eroding traditional social networks. Local shops are disappearing in favor of tourist businesses, schools are emptying, and community ties are weakening.

 

Sector Analysis: How Different Property Types Are Evolving

Traditional riads remain the most sought-after properties, with occupancy rates nearing 85% in medinas and annual yields of 15–20%.
Modern apartments attract international tenants looking for comfort, but they also divert high-quality inventory away from the long-term rental market.
High-end villas create additional supply without directly impacting traditional housing stock.

 

Regulation & Outlook 2025–2030

In response to growing social tensions, some Moroccan cities are exploring regulatory solutions:

  • Marrakech is considering neighborhood quotas
     
  • Rabat is introducing differentiated tax measures
     

With tourism projected to reach 26 million visitors by 2030, Morocco will need to double its accommodation capacity, driving an even more radical transformation of the rental market.

 

Innovative Solutions: Balancing Tourism with Housing Needs

New approaches are emerging to balance rental profitability and housing access:

  • Flexible leases
     
  • Mixed seasonal/annual rental models
     
  • Shared ownership/co-housing models
     

The geographic diversification of tourism (+22% growth in February 2025) is also opening new opportunities in less saturated areas.

 

Conclusion: A Rental Market Transformed — But at What Cost?

Morocco’s tourism boom is irreversibly transforming the national rental market. While it’s generating exceptional economic opportunities, it’s also creating major social challenges.

The future of the sector will depend on Morocco’s ability to balance tourism-driven profitability with social cohesion, through smart regulation and innovation in rental models.

 

Smart Investing: Sell or Rent in 2025?

This rental market transformation raises a key question for investors:
Should you focus on buy-to-let income or capitalize on resale value in this booming tourism context?

 

Further Reading:

 

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