The most profitable neighbourhoods for rental in Marrakech are not necessarily the ones that spring to mind first. While the medina captivates investors with its picturesque riads, it is often modern districts like Guéliz or premium areas like Hivernage that offer the best combination of yield, manageability and liquidity. Here is a comprehensive overview to guide your investment.
Guéliz: The Modern District
Guéliz is Marrakech's modern city centre, born during the French protectorate and developed since independence to become the district for business, retail and upscale restaurants. It now offers the best balance between entry price, rental demand and ease of management.
The tenant profile in Guéliz is particularly appealing for landlords: expatriates working for international companies, Moroccan executives from major Casablanca firms with Marrakech-based projects, and affluent tourists who prefer an apartment to a hotel for extended stays. This diversity of profiles ensures sustained demand year-round.
Prices per sqm in Guéliz vary by street and building quality: from MAD 12,000 to 25,000/sqm for a quality apartment. Rents for a good two-bedroom apartment range from MAD 6,000 to 12,000/month for long-term leases, and can reach MAD 1,500–3,000/night for short-term rentals in a well-equipped, well-presented apartment.
Gross long-term yield in Guéliz ranges between 5% and 7%, placing it among the best in Marrakech. For short-term rentals, yields can be significantly higher but require more active management or a specialist operator.
From an investment perspective, apartments with a terrace or rooftop are in high demand and command premium prices. Recent buildings with parking, lift and concierge/security service are preferred by the expatriate and upmarket tourist clientele.
Medina: Authentic Charm
The medina of Marrakech is a market unto itself, governed by different rules from the rest of the city. Investing in a riad in the medina means entering a unique heritage universe — with its specific advantages and constraints.
Medina riads are rented primarily to an international tourist clientele seeking authenticity and a change of scenery. In high season (November to April and during European school holidays), quality riads can command MAD 2,000–8,000 per night depending on size and quality. In low season, prices sometimes drop to MAD 800–1,500 per night.
The annual gross yield of a well-managed medina riad can reach 8–15% on acquisition price, but with strong seasonality and high management costs. Outside tourist seasons, vacancy can be significant if the distribution strategy is not well-established.
Investment constraints in the medina are considerable: renovation works are complex (restricted vehicle access, strict regulations on listed facades), maintenance is more expensive than for a modern apartment, and resale is slower. These factors must be factored into your net yield calculation.
For investors wishing to enter the medina, working with an architect specialising in historical heritage and an experienced hospitality rental management agency is non-negotiable.
Hivernage: Accessible Luxury
Hivernage is Marrakech's upscale residential and hotel district, located between the medina and Guéliz. It houses the palace hotels (La Mamounia, Es Saadi), casinos and luxury residences that attract a wealthy international clientele.
Investing in Hivernage means targeting the premium end of the Marrakech rental market. Luxury apartments in this district command very high rents — MAD 15,000–35,000/month for a 3–4 bedroom top-of-the-range apartment on a long-term lease, and considerably more for seasonal short-term rentals.
The tenant profile in Hivernage differs from Guéliz or the medina: wealthy families staying for several weeks, groups of affluent travellers seeking a villa or large apartment with a pool, and companies accommodating visiting executives. This segment is narrower but highly rewarding per night.
The entry ticket is high: top-tier apartments in Hivernage start at MAD 20,000/sqm and can exceed MAD 40,000/sqm for exceptional properties with views or premium amenities (pool, concierge service).
For investors with a substantial budget wishing to position their property in the luxury segment, Hivernage offers interesting long-term capital appreciation prospects, particularly given the growth of luxury tourism in Morocco.
Palmeraie: Premium Investment
The Palmeraie of Marrakech is a distinctive residential and hotel area located a few kilometres from the city centre, in the heart of a palm grove oasis. It is a territory unto itself with its own market dynamics.
Palmeraie villas and riads are sought by the very top of the market: royal and diplomatic families, showbusiness celebrities, international business executives who rent for weekends or entire weeks. Rental prices can reach very high levels — from MAD 10,000 to 50,000 and beyond per night for a large villa with pool and full service.
Investment in the Palmeraie is reserved for significant capital: a quality villa rarely trades below MAD 5 million, and exceptional properties can reach MAD 20–50 million. However, returns in hospitality operation can be spectacular with professional management and a well-built distribution strategy.
The main constraint in the Palmeraie is the distance from the city centre, which limits appeal for long-term tenants wanting easy access to shops and services. This investment is therefore primarily oriented towards short-term hospitality rental.
Comparing Yields
To assist with decision-making, here is a synthetic comparison of each district's characteristics:
Guéliz: average price MAD 15–20k/sqm / gross long-term yield 5–7% / short-term 8–12% / tenant profile: expatriates, executives, affluent tourists / management ease: high.
Medina (riads): acquisition price MAD 1–5M / potential gross yield 8–15% / strong seasonality / tenants: international tourists / management: complex, specialist operator needed.
Hivernage: average MAD 20–40k/sqm / gross yield 4–6% long-term / tenants: luxury, wealthy groups / management ease: medium / strong capital appreciation.
Palmeraie: total investment >MAD 5M / potential yield 6–15% in hospitality / very high seasonality / tenants: ultra-premium / requires hospitality operator.
For the vast majority of individual investors, Guéliz represents the best entry point: liquid market, diversified demand, accessible management and attractive yields without the complexities of the medina or the prohibitive entry price of Hivernage and the Palmeraie.
Whatever zone you choose, automating rental management becomes a decisive advantage in Marrakech, where demand can be intense and booking windows close quickly.
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