Market Analysis Marrakech Medina 2016 and Forecast for Medina Real Estate in 2017. Exclusive and original content. Only from Bosworth Property Marrakech, your trusted Medina specialist. Available to you 24/7 by phone on +212658025028 or by mail colin@bosworthpropertymarrakech.com
The Marrakech Medina real estate market was resilient for the first three quarters of 2016 and showed modest growth in the fourth quarter. Growth remained very location specific, with the traditionally strong districts doing well. We note a surge of interest for the Riad Laarous district and strong demand in Dar El Bacha, Ksour and Mouassine. The usually bouyant Bab Doukalla and Kasbah areas have remained flat. There is increased interest in the South of the Sidi Ben Slimane area around Bab Taghzout. The periphery remains depressed.
The word is getting out – Morocco (and Marrakech in particular) is a safe and growing location. Far from the troubles that have affected other parts of the Arabic speaking world, Marrakech offers investors a haven from the political turmoil in Europe and the US. English speaking demand is driving the real estate market up. Whilst the majority of property owners are still French, there is a clear tendency towards a new demographic, with northern European and North American buyers dominating. Interest from China is making itself felt for the first time with cash rich buyers scouting.
Growth in tourism is fuelling increased Real Estate demand
Marrakech continues to grow as a major international tourist destination. With increased numbers of casual visitors, the Medina real estate market has benefitted accordingly. The new Marrakech city centre airport Terminal is a strong signal. Only ten minutes from the ancient Medina, it puts London and Geneva just three hours away. The very successful United Nations Climate Change Conference, COP22, was held in Marrakech in November and produced a noted spike in Real Estate interest. The investment in parks and public spaces has given Marrakech new energy.
Following the 2008 Euro crisis and the 2011 Arab Spring, the Riad market had been frankly depressed, with prices 45% below the highs of the speculative bubble of 2007. The French divestment continues to this day, meaning that the market remains resolutely in the hands of buyers. There are still bargains to be had. However, the fourth quarter of 2016 was so strong as to send a clear message to investors.
Rare historical Riads owned by the French are being sold to the new demographic
Buying trends in 2016 were relatively clear. Investors were buying Riad guesthouses in good areas. And families were buying holiday homes and rental properties. Historic Riads were at a premium and will remain so. International buyers have understood that property is affordable, finance is easy and returns are generous.
It’s still too early to call a clear trend for 2017. However, all the signs are positive. The socio-political context is conducive to market growth. Marrakech as a destination is expanding rapidly. Riad prices have stabilised over the last couple of years and are now showing signs of upward pressure. Brexit and a US administration under Mr Trump may force inward investment. If Chinese interest becomes concrete it will change the game. My forecast for the coming year is bullish. If you’re selling … hang on. If you’re buying … get in now.
There is something for everyone in Marrakech – from a luxury Riad to a family home
Please don’t hesitate to contact me for a personal chat. I love discussing Marrakech Medina. I live and work in the old city and it is a fascinating place. You can call me on 00212658025028 or mail me colin@bosworthpropertymarrakech.com – there is no engagement and I am always happy to share my intimate knowledge of this growing market with interested people. And remember to get your copy of my Free Guide to investing in this amazing destination.
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