How to Calculate the Rental Yield of a Property in Marrakech (2026)
Key takeaways
- Home › Improving Rental Yields › How to Calculate the Rental Yield of a Property in Marrakech (2026)Updated for 2026.
- Before the method, here are the orders of magnitude observed on the Marrakech market in 2026.
- For an apartment bought at 1,500,000 MAD ($150,000) and let at 9,000 MAD ($900) a month, annual rent reaches 108,000 MAD ($10,800); the gross yield is therefore 7.2%.
- If the same property bears 22,000 MAD ($2,200) of annual charges, net income falls to 86,000 MAD and the net yield drops to 5.7%.
Updated for 2026. Calculating rental yield in Marrakech is the unavoidable step before any property investment in the ochre city. Backed by over 25 years of expertise, Armonia Solutions, a concierge and rental-management company operating in Marrakech and Agadir, our team helps hundreds of owners each year assess the real profitability of their assets. Too many investors trust the headline gross yield shown in a listing, only to be disappointed once charges, tax and vacancy are deducted.
This practical guide explains, step by step, how to calculate a reliable yield, fold in every charge, compare properties on a like-for-like basis and, above all, optimise your returns for the long run. We distinguish gross yield, net yield and net-net yield, we cost each line in MAD with its US dollar equivalent, and we give you an interactive calculator to estimate profitability in seconds. The goal is simple: to put the same analytical tools used by rental-management professionals in your hands.
Is your project in Morocco well structured?
4 questions for a quick diagnosis.
Key figures of rental yield in Marrakech (2026)
Before the method, here are the orders of magnitude observed on the Marrakech market in 2026. These ranges come from public data published by the High Commission for Planning and from our direct observation of the managed portfolio. They must be refined property by property, because profitability depends heavily on location, standing and the chosen operating model.
| Indicator | Observed value 2026 | Equivalent / precision |
|---|---|---|
| Average gross yield (long-term) | 5% to 7% | Residential city units |
| Average gross yield (short-term) | 8% to 12% | Well-located Medina, Hivernage, Guéliz |
| Average net yield (after charges) | 4% to 8% | By management and occupancy |
| Average price per m² (apartment) | 12,000 to 22,000 MAD | $1,200 to $2,200 |
| Short-term occupancy rate | 55% to 75% | Strong seasonality |
| Delegated management charges | 15% to 25% of rent | All-inclusive concierge |
These figures confirm that Marrakech remains one of the most attractive Mediterranean destinations for rental investment, but that the gap between gross and net yield is particularly wide here, especially in short-term letting.
What is rental yield?
Rental yield measures the ratio between the income a property generates and the capital invested to acquire it. It is expressed as an annual percentage and is the reference metric for comparing investment opportunities. There are three levels of reading, from the most optimistic to the most realistic. Gross yield accounts only for rent and purchase price; net yield deducts running charges; net-net yield additionally factors in the applicable tax.
A savvy owner always thinks in net, or even net-net, terms, because that is the only figure reflecting the money actually left in your pocket at year-end. In Marrakech the gap between gross and net can reach two to four percentage points, especially when the property is run as a seasonal let with recurring cleaning, laundry and platform-commission costs. Overlooking this distinction is the most common mistake we correct with new investors.
The step-by-step calculation method
Gross yield is calculated by dividing annual rent by purchase price, multiplied by one hundred. For an apartment bought at 1,500,000 MAD ($150,000) and let at 9,000 MAD ($900) a month, annual rent reaches 108,000 MAD ($10,800); the gross yield is therefore 7.2%. This quick calculation serves as a first filter but is never enough to validate a purchase.
Net yield refines that result by subtracting all annual charges before dividing by the purchase price. If the same property bears 22,000 MAD ($2,200) of annual charges, net income falls to 86,000 MAD and the net yield drops to 5.7%. Net-net yield, finally, deducts property-income tax: with tax of about 10,000 MAD, the real yield sits around 5.1%. Here is the summary of the three levels.
| Level | Formula | Example (1.5M MAD property) |
|---|---|---|
| Gross yield | (annual rent / price) × 100 | 7.2% |
| Net yield | ((rent − charges) / price) × 100 | 5.7% |
| Net-net yield | ((rent − charges − tax) / price) × 100 | 5.1% |
The charges to include in the calculation
An honest calculation means listing every charge, including the ones we conveniently forget. In Marrakech, the most common lines are the municipal services tax, building-management (syndic) fees, insurance, routine maintenance, a provision for major works, and, in short-term letting, cleaning, laundry, consumables and platform commission. Delegated concierge management is itself a charge, but it generally translates into higher occupancy that more than offsets its cost.
| Charge line | Indicative annual amount | USD equivalent |
|---|---|---|
| Municipal services tax | 1,500 to 4,000 MAD | $150 to $400 |
| Syndic / building management | 3,000 to 9,000 MAD | $300 to $900 |
| Home insurance | 1,200 to 3,000 MAD | $120 to $300 |
| Maintenance and small repairs | 4,000 to 10,000 MAD | $400 to $1,000 |
| Cleaning and laundry (short-term) | 8,000 to 20,000 MAD | $800 to $2,000 |
Provisioning these lines from the outset avoids nasty surprises and gives a faithful picture of profitability. We recommend a cautious rather than optimistic charges assumption, better to be pleasantly surprised at year-end.
Yield by property type in Marrakech
Not all properties are equal on profitability. A studio or small city-centre apartment often offers the best gross yield, because its price per m² stays contained while rental demand is strong. A Medina riad appeals for upmarket seasonal letting but demands heavier upkeep. A villa with a pool generates high revenue in high season but suffers more marked vacancy out of the tourist period. The table below summarises these trends.
| Property type | Typical gross yield | Operating profile |
|---|---|---|
| Studio / 1-bed in town | 6% to 9% | Long or medium term, stable demand |
| Medina riad | 7% to 11% | Premium short-term, high upkeep |
| Hivernage / Guéliz apartment | 6% to 10% | Mixed, business and leisure clientele |
| Villa with pool | 5% to 9% | Strong seasonality, high ticket |
Short-term or long-term: what impact on yield?
Short-term letting posts higher gross yields, sometimes by three to five points, but it comes with far heavier operating charges and intensive management. Long-term, by contrast, secures steady income with low costs but caps profitability. The right trade-off depends on your availability, your risk appetite and the property’s location. A very touristy apartment will benefit from seasonal operation; an out-of-centre home will be more profitable on a classic lease. In practice, many of our clients adopt a hybrid strategy: seasonal letting during the tourist high season, then a medium-term lease for the quiet months. This approach smooths occupancy across the year and noticeably improves net yield, provided you have responsive management able to switch modes without downtime. Our guide to Airbnb profitability secrets in Marrakech develops the short-term side in detail.
How to optimise your rental yield
Optimising profitability is not just about raising the rent. The first lever is occupancy: a few extra nights a month weigh more than a rate increase. The second lever is charge control, by renegotiating maintenance contracts and pooling services. The third is the quality of the listing and photography, which directly drives the average nightly rate. Finally, choosing the best-suited tax regime can add one to two points of net-net yield, our overview of the tax challenges Airbnb owners in Marrakech face complements this yield analysis. A professional concierge acts on all four levers at once, and owners typically see an occupancy improvement and unit-cost reduction that offsets the service fee.
Illustrative example (simulation): a Guéliz apartment
Illustrative example (simulation), indicative figures, not a real client case.
Take a British investor who acquires in 2024 a 75 m² apartment in Guéliz for 1,650,000 MAD ($165,000). Run as a short-term let with 68% occupancy, the property generates 168,000 MAD ($16,800) of annual rental income. The gross yield therefore comes out at 10.2%, a flattering figure on first reading.
After deducting charges, 14,000 MAD of proportional management and platform fees, 18,000 MAD of cleaning and laundry, 6,000 MAD of building fees and taxes, 8,000 MAD of maintenance and consumables, or 46,000 MAD in total ($4,600), net income falls to 122,000 MAD. The net yield stands at 7.4%. After property-income tax estimated at 12,000 MAD, the net-net yield reaches 6.7%. A solid level, but a long way from the 10.2% gross shown at the start: proof that only the full calculation lets you decide with full knowledge.
Estimate your rental yield
Enter the purchase price, expected monthly rent and annual charges to instantly obtain your gross and net yield, plus the annual rent converted to US dollars. Amounts are entered in MAD; the indicative conversion uses a rate of 10 MAD to 1 US dollar.
Your checklist before investing
Before signing, run through this verification list we use with our investor clients: check the price per m² against recent transactions in the district; estimate a cautious occupancy rate (60% rather than 80%); list every charge, including a provision for major works; calculate net and net-net yield, never gross alone; anticipate the tax applicable under your chosen regime; set aside a cash buffer for vacancy; and compare at least three properties before deciding.
Illustrative scenarios
Illustrative scenarios (simulation), indicative figures, not real client cases.
Scenario 1. A British couple buys a Medina riad on the strength of an advertised 11% gross yield. After a first year of self-management, the real net yield capped at 5%, undermined by underestimated maintenance costs. Once management was delegated and charges optimised, the net yield climbed back to 7.3% in the second year.
Scenario 2. An investor hesitates between two Guéliz apartments. The net-net calculation reveals that the cheaper, less prestigious unit offers a yield nearly two points higher thanks to lower building-management charges. The full calculation directly shaped the decision.
Scenario 3. An owner operated a villa in high season only, with 40% annual occupancy. By adopting a hybrid short/medium-term strategy, they lifted that rate to 63% and improved net yield by more than three points, with no rate increase.
Buying, bargaining and the Moroccan way of valuing property
For British and other international buyers, the cultural side of valuing a Marrakech property is as decisive as the spreadsheet. Prices are rarely fixed in stone: a measured back-and-forth is expected, and an offer accepted too quickly can signal you did not understand the local game. Much business still flows through the simsar, the neighbourhood broker whose word-of-mouth network surfaces riads never advertised online, but whose informal commission must be clarified in advance. The adoul (traditional notary) and the modern notaire both have roles, and a clean title search at the land registry is non-negotiable before any deposit. Foreign investors who take time to understand these customs, patience over pressure, relationships over transactions, consistently buy better and avoid the inflated tourist price. Reading the culture is, quite literally, part of reading the yield.
FAQ: your questions on rental yield in Marrakech
What rental yield should you target in Marrakech?
A net yield between 5% and 8% is considered satisfactory in 2026. Above that, check the calculation properly includes all charges and vacancy.
Should you favour gross or net yield?
Always net, or even net-net. Gross serves as a first filter but never reflects the profitability actually received.
Is short-term letting more profitable?
Often yes on gross yield, but its operating charges are markedly higher. The final net yield depends on occupancy and management quality.
How do you estimate the occupancy rate?
Base it on real district data and stay cautious. A rate of 60% to 70% is realistic for a well-managed short-term unit.
Do concierge charges reduce yield?
They are a cost, but the occupancy improvement and cost control they enable generally offset their price.
How is rental income taxed in Morocco?
Property income is subject to income tax under a specific scale. The choice of regime directly affects net-net yield.
Does yield include capital gains?
No. Rental yield measures annual income. The capital gain on resale is a separate gain, to be analysed on its own.
How many properties should you compare before buying?
At least three, applying exactly the same net calculation method to each for a fair comparison.
Does a loan improve yield?
Leverage can increase the return on equity. Review the conditions of mortgage lending for foreign buyers in Morocco before committing.
Should I buy in my own name or via a company?
It depends on your residence, wealth situation and goals; a cross-border tax specialist can compare both routes before purchase.
Conclusion
Calculating your rental yield in Marrakech is not about keeping the most flattering figure, but about measuring real profitability, charges and tax included. This discipline separates the discerning investor from the one who settles for a listing's promise. By applying the method set out here and leaning on our calculator, you have everything you need to compare, decide and optimise with confidence. Want a personalised estimate of your property's profitability? The Armonia Solutions team will produce a costed study, calculate your net-net yield and propose a tailored operating strategy. Contact us to turn your project into a high-performing investment.
Sources
Market data and statistics: High Commission for Planning, hcp.ma, and Bank Al-Maghrib for monetary and exchange-rate references. Observations drawn from the portfolio managed by Armonia Solutions in Marrakech and Agadir, updated 2026. Rates, prices and ranges are indicative and must be validated property by property before any investment decision.
