In 2025, a crucial question still arises for every savvy investor: should you prioritize the authentic charm of a riad in the heart of the Medina, or opt for the contemporary comfort of a villa in Marrakech’s residential districts? This decision, far from trivial, can directly influence the profitability and long-term sustainability of your real estate project. Let’s shed light on the advantages and drawbacks of these two investment opportunities to guide your decision.
A Real Estate Market on the Rise in 2025
The Moroccan property sector shows remarkable growth, with Marrakech recording a moderate 3% increase in Q1 2024, while certain neighborhoods have seen property prices per square meter double in just two years.
Buyers are now split between European investors (35%)—mainly French and Belgian nationals seeking a sunny second home, Moroccan expatriates (40%) aiming to maintain a family heritage, and an emerging clientele from the Gulf and Sub-Saharan Africa (25%). This diversification ensures market stability despite international economic fluctuations.
Investing in a Riad: Authenticity and Cultural Heritage
The undeniable strengths of a traditional riad
Buying a riad in Marrakech represents far more than a financial investment—it is the acquisition of a piece of history. Located in the heart of the Medina, a UNESCO World Heritage site, these traditional homes enjoy an exceptional location just minutes from Jemaa el-Fna Square and the souks.
Tourism appeal is their main competitive advantage. A renovated 4-bedroom riad rented on a short-term basis (Airbnb) can generate 6% to 8% net annual rental yield, with an average nightly rate reaching 700 MAD in Marrakech—the highest in Morocco. Travelers are seeking this immersive and authentic experience that only a riad can provide.
The challenges to anticipate
However, buying a riad in Marrakech requires a methodical approach. Maintenance costs are significant: expect 3% to 5% of the property’s value annually to preserve the architectural features (tadelakt, zellige tiles, woodwork). Renovation in the Medina is subject to strict regulations to maintain architectural authenticity.
Accessibility is another challenge: narrow alleys limit vehicle access, complicating deliveries and moves. Finally, property management requires strong local expertise to meet the high service expectations of an international clientele.
Investing in a Villa: Comfort and Modern Living
The appeal of high-end residential districts
Contemporary villas in Marrakech stand out for their modern design and premium amenities. Located in sought-after districts such as the Palmeraie, Hivernage, or Guéliz, they offer space, privacy, and security. A 300 m² villa with pool and garden perfectly matches the expectations of expatriate families and European retirees seeking comfort.
The long-term rental market is especially attractive: a furnished 4-bedroom villa rents for 15,000 to 25,000 MAD per month, depending on the district, generating a stable 6% to 8% annual return. Demand comes mainly from expatriates, international executives, and Moroccan expatriates during extended stays.
The limits of villa investment
The main drawback lies in the entry ticket: expect 3 to 6 million MAD for a quality villa in a desirable district, compared to 1.5 to 3 million MAD for a renovated riad in the Medina. Distance from the historic center may also reduce tourist appeal, although districts like Hivernage compensate with proximity to luxury hotels and golf courses.
Villa vs Riad in 2025: A Numerical Comparison
Average prices per district
- Riad Medina: 9,000 to 15,000 MAD/m² (depending on renovation)
- Villa Palmeraie: 8,000 to 18,000 MAD/m²
- Villa Hivernage: 10,000 to 20,000 MAD/m²
- Villa Guéliz: 7,000 to 15,000 MAD/m²
Estimated rental yields
- Riad short-term rental: 6% to 8% net annually
- Villa long-term rental: 5% to 7% net annually
- Villa short-term rental: 6% to 9% net annually (depending on district)
These figures confirm that the choice between villa and riad depends as much on your investor profile as on your long-term objectives.
Investor Profiles and Opportunities in 2025
Each property type suits different strategies. Riads attract investors seeking long-term capital appreciation and attractive short-term rental yields. Villas are better suited for buyers looking for stable rental income and occasional personal use.
European retirees generally opt for villas offering comfort and easy maintenance, while young entrepreneurs focus on riads for their immediate profitability potential. Moroccan expatriates often diversify by purchasing both types depending on family needs.
Practical Advice and Essential Precautions
Whatever your choice, some verifications are crucial. Title deed validation is key: ensure the property has a definitive title deed or a valid building permit. Local taxation must also be considered: registration fees (6%), VAT (20% on new properties), and income tax on rental earnings.
Partnering with an experienced professional like KNA Immobilier is essential to secure your acquisition. Our in-depth knowledge of the local market, privileged relations with local authorities, and strong regulatory expertise ensure a safe and profitable investment.
So, Villa or Riad? Make the Right Choice with KNA
Marrakech real estate offers exceptional opportunities in 2025, whether you choose the authenticity of a riad or the modernity of a villa. Each option presents unique benefits depending on your profile and investment goals.
Still hesitating between the two? Contact KNA Immobilier today for a free personalized study of your project. From property search to signing, including administrative procedures and rental management, our expert advisors will guide you every step of the way. Because your investment deserves the best guidance, trust KNA’s expertise to turn your Marrakech real estate ambitions into reality.
Sources and References
- Marché Immobilier au Maroc 2025 - NeroLink Media
- Évolution des prix immobiliers Marrakech - Médias24
- Indice des prix des actifs immobiliers - Bank Al-Maghrib
- Quartiers rentables Marrakech 2025 - Luxurious Properties