Living in Morocco has taught me that buying property here—especially a traditional riad in Marrakech's ancient Medina—is unlike anywhere else in the world. After years of witnessing both success stories and cautionary tales, I've learned that knowledge truly is power when it comes to navigating this unique market.
The Medina's labyrinthine streets hold treasures beyond imagination, but they also conceal challenges that can trip up even the most seasoned investors. If you've ever dreamed of owning your own slice of Moroccan magic, this guide will walk you through everything you need to know about the acquisition process.
The Reality Check: It's a Jungle Out There
Let me start with some honest truth: the Medina property market today is intense. We're talking about a feeding frenzy where good properties disappear within 48-72 hours, and everyone from the local baker to your taxi driver claims to be a real estate agent.
Unlike European markets, real estate isn't a regulated profession in Morocco. There's no licensing system, no professional carte T equivalent. This means literally anyone can declare themselves an agent immobilier, and trust me, they do.
The Players You'll Encounter:
- Legitimate real estate agencies with proper business registration
- Samsars - unofficial intermediaries who knock on doors and know people, but operate without any legal structure
- Opportunists - everyone else trying to make a quick commission
The challenge? Samsars and opportunists often inflate prices, adding their margins on top of the seller's asking price. It's completely normal here for someone to take a property listed at 1 million dirhams and quote you 1.2 million, pocketing the difference.
Step 1: Finding Your Riad - Choose Your Guide Wisely
My advice? Work with established agencies that have:
- Proper business registration (RC - Registre de Commerce)
- A physical office location
- A track record you can verify
- Professional staff who understand the legal requirements
Avoid the temptation to work directly with samsars unless you're extremely experienced. While they might promise better deals, the risks often outweigh any potential savings.
Pro tip: Good opportunities move fast in the Medina. Be prepared to make decisions quickly, but never skip due diligence. The best riads often have multiple interested buyers within hours of being listed.
Step 2: Understanding Property Types - Titled vs. Melk
This is crucial and something many foreign buyers don't understand initially. In the Medina, you'll encounter two types of properties:
Titled Properties (Titrés)
These have official title deeds registered with the Conservation Foncière (Morocco's equivalent of a land registry). They're properly surveyed, legally documented, and much easier to buy and sell.
Melk Properties
These are properties owned by families for generations but never officially registered. They're not illegal, just not formally documented. Many Medina properties fall into this category because the titling process is expensive and complex, especially when multiple heirs are involved.
Important: While melk properties can be titled, it's a year-long process that requires significant expertise. As a foreign investor, I strongly recommend sticking to already-titled properties or those in "réquisition" (the intermediate stage between melk and titled, but well advanced in the process).
Step 3: Legal Verification - Your Safety Net
Before signing anything, verify the property title with a trusted notary. This step is non-negotiable. Your notary should confirm:
- The property's legal status
- Exact boundaries and surface area (measured at ground level, not habitable space)
- Any outstanding debts or legal issues
- Chain of ownership
Choosing a notary: This relationship is crucial. Look for notaries with experience in Medina properties and a solid reputation among the expatriate community.
Step 4: Financial Due Diligence (For Guest Houses)
If you're buying an operational riad-guest house, you're purchasing both the property and the business. This requires thorough financial analysis:
- Review several years of financial statements
- Verify occupancy rates and seasonal patterns
- Understand revenue streams beyond accommodation (meals, spa services, excursions, airport transfers)
- Analyze profit margins and operating costs
These additional services can represent significant revenue that many buyers overlook in their initial calculations.
Step 5: The Compromis de Vente (Purchase Agreement)
Moroccan property transactions can move much faster than in Europe, especially for cash purchases.
Key details:
- Standard deposit: 10% held in escrow by the notary
- Timeline: Typically 2-3 months, but can be extended due to administrative requirements
- Commission: 5% + tax (6% total), split equally between buyer and seller
Recent changes: Since July 2024, all sales require a "quitus fiscal" - tax clearance proving the seller has paid all taxes. This can add 2-4 weeks to the process and sometimes reveals unexpected complications.
Step 6: Financing Options
While cash purchases are simpler and faster, financing is available for foreign investors:
Loan requirements for non-residents:
- Minimum 30% down payment (often 50% for older buyers)
- Maximum term: 20 years (less for older applicants)
- Moroccan bank account required
Pro tip: Banks can be hesitant about Medina properties due to their unique nature. A strong local relationship often makes the difference.
Step 7: Company Structure vs. Personal Ownership
Many foreign investors purchase through a Moroccan SARL (limited liability company) rather than personally. This structure can offer advantages for:
- Tax optimization
- Business operations
- Estate planning
- Multiple property ownership
Setting up a SARL takes about a month and requires a good local accountant.
Step 8: Closing and Transfer
The final signing (acte de vente) resembles the French system:
Costs to expect:
- Notary fees: 7% total (similar to France)
- Actual notary charges: 0.5-1%
- Government taxes and fees: The remaining 6%
Step 9: The Retransfer Guarantee - Your Exit Strategy
Here's something many investors worry about unnecessarily: getting your money out of Morocco when you sell.
Morocco offers a garantie de retransfert for foreign investors. When you purchase with foreign currency (euros, dollars, etc.), your notary registers this with the Office des Changes using Form 2. This guarantees your right to repatriate all proceeds, including capital gains, when you sell.
Capital gains tax: 20% on profits for individual ownership (different structures may have different rates)
The Renovation Reality
Most Medina properties require some level of renovation. This deserves its own detailed discussion, but key points include:
- Building permits are required for structural changes
- Traditional materials and techniques often work best
- Local expertise is essential for navigating regulations
- Budget more time and money than you initially think
Red Flags to Avoid
Through years of observation, here are the warning signs I've learned to watch for:
- Pressure to sign immediately without proper verification
- Reluctance to provide legal documents
- Prices that seem too good to be true
- Sellers who can't meet in person or at the property
- Agents who discourage you from using your own notary
Final Thoughts: Patience and Partnerships
Buying a riad in Marrakech's Medina can be incredibly rewarding, both financially and personally. I've seen investors create stunning properties that become both profitable businesses and beloved second homes.
The key is approaching this market with respect, patience, and the right local partnerships. Yes, it's more complex than buying property in Europe, but that complexity also creates opportunities for those who do their homework.
Remember: this isn't just a real estate transaction—you're becoming part of a 1,000-year-old community with its own rhythms, traditions, and ways of doing business. Embrace that reality, surround yourself with trusted local experts, and you'll find that owning a piece of Marrakech's magic is worth every challenge along the way.
Have you considered investing in Marrakech? What questions do you have about the process? I'd love to hear about your experiences or concerns in the comments below.
Disclaimer: This information is based on current practices as of 2024-2025 and general market observations. Always consult with qualified local professionals including notaries, lawyers, and accountants for advice specific to your situation.