Real estate prices in Marrakech are undergoing significant changes, with a sharp rise in land prices in strategic areas such as R+5, GH2, and SD1. This surge in prices is raising questions for investors and local buyers alike. But what is driving this increase? What role do traditional and professional real estate agents play in the evolution of property prices in Marrakech? And what can we expect for the future after the World Cup? We’ll explore these questions in detail in this article.
Rising land prices in R+5, GH2 and SD1 zones
The R+5, GH2 and SD1 zones in Marrakech represent key areas for real estate development. The R+5 zone is dedicated to high-rise buildings, offering a higher population density. As for the GH2 and SD1 zones, they are renowned for luxury villas and luxury residences. In recent years, Marrakech real estate prices for land in these zones have risen considerably.
The causes of rising prices
There are several reasons for this surge in prices. Firstly, demand for quality real estate in Marrakech continues to grow, not least because of the tourist appeal and investment opportunities. What’s more, the supply of available land in these sought-after areas is becoming increasingly scarce, mechanically driving up prices. In some GH2 zones, for example, prices have almost doubled over the past five years, making it more difficult for local buyers to access property.
The crucial role of the traditional real estate agent
The traditional real estate agent (Semsar) remains a central player in Marrakech real estate transactions. However, their role is often called into question due to their difficulty in accurately valuing properties.
Challenges for traditional agents
Traditional real estate agents sometimes lack precise data for estimating property prices. They often rely on experience and comparisons with similar properties, but this can lead to overvaluation. Owners, influenced by rising prices, tend to ask for high prices, which can slow down the sale of their properties. As a result, many properties remain on the market for long periods.
Comparison with modern professionals
In contrast, modern professionals use advanced valuation tools and up-to-date market price data. They are able to provide more accurate estimates, which facilitates transactions. What’s more, their use of digital marketing and online real estate platforms enables them to reach a wider audience and sell faster. This underlines the importance of choosing a qualified professional to value and sell a property.
Owners and the difficulty of estimating sales prices
Another factor contributing to the overvaluation of property in Marrakech is the inability of owners to correctly assess the value of their properties. In the absence of professional expertise, many owners set prices based on informal comparisons or market trends, without taking economic reality into account.
Overvaluation and its consequences
Overvaluation can have negative consequences for property owners. Properties that remain on the market for too long eventually lose value in the eyes of potential buyers. What’s more, owners risk missing out on sales opportunities by setting unrealistic prices. That’s why it’s essential to call in a professional to assess the property correctly and avoid “riding the wave” of price hikes without a solid foundation.
A buoyant real estate market despite everything
Despite these rising prices, the Marrakech real estate market remains buoyant. Real estate transactions continue to be plentiful, and new construction projects are springing up regularly. Investors, particularly foreigners, are still looking for bargains in popular areas such as Guéliz, Hivernage and the Palmeraie.
Growth sectors
Certain areas of Marrakech, such as those close to the city center and major tourist attractions, continue to attract buyers and investors. New-build developments, in particular, are enjoying great success, offering modern apartments and villas with top-quality amenities. These projects meet a growing demand for luxury and comfort, helping to maintain an active market.
Post-World Cup: prices set to stagnate?
Although the real estate market is booming, some experts expect prices to stagnate after the World Cup. This major event drew international attention to Marrakech, but once it’s over, demand could diminish, leading to stable or even slightly lower prices.
Reasons for possible stagnation
Several factors could explain this stagnation. Firstly, saturation of the real estate market, particularly in zones GH2 and SD1, could be limiting new transactions. In addition, rapidly rising land prices have already made some properties unaffordable for some buyers, which could dampen demand. Finally, the post-World Cup economic slowdown could also play a role in this stagnation.
Conclusion
To sum up, the Marrakech real estate market is going through a period of rising prices, particularly in the R+5, GH2 and SD1 zones. However, this situation should not overshadow the importance of rigorous, professional property valuation. While the market remains buoyant, prices are likely to stabilize after the World Cup. Buyers and investors must therefore exercise caution and discernment to seize the best opportunities in this changing context.
