Tips for buying a property in a tourist area without risk

A pretty riad with people sitting in the front window

Investing in real estate in a tourist area can be an excellent opportunity, whether to generate rental income, enjoy a family vacation, or diversify your assets.

However, this type of investment involves specific features and risks that are important to understand to avoid unpleasant surprises.

Discover in this article the essential tips for a successful and safe purchase in a tourist area.

Choose the right property location

Location is the number one criterion for buying real estate in a tourist area. A well-located property will always be more attractive, whether for tenants or for a potential resale.

Focus on desirable and accessible areas

Opt for an area known for its tourist appeal, such as seaside resorts, mountains, or historic towns. Also make sure the property is easily accessible (near airports, train stations, or major roads).

In Essaouira or Tangier, properties close to the beach or tourist attractions often have high rental demand.

Analyze local development projects

Areas experiencing rapid growth or benefiting from recent infrastructure (roads, airports, leisure centers) may offer significant development potential. Find out about development projects that could increase the region's appeal.

Consult urban planning maps to ensure the environment remains conducive to tourism (no industrial construction or highway projects in the immediate vicinity).

Evaluate rental demand and tourist seasons

The success of a real estate investment in a tourist area depends largely on rental demand. A thorough analysis of seasonality and tourist preferences is essential.

Study seasonality

Some destinations have highly seasonal tourist numbers. A property located in a seaside resort, for example, may be very profitable in summer, but less so in winter. Assess whether off-season demand justifies fixed costs (maintenance, utilities, credit).

Prefer destinations with dual seasonality, such as mountains with summer (hiking) and winter (skiing) activities.

Identify the profile of tourists

A city center apartment might attract business travelers or couples, while a beachfront house might appeal to families. Adapt the property type to the local clientele.

In Marrakech, a riad converted into a vacation rental can attract both international tourists and local groups.

Conduct a detailed financial analysis

Purchasing a property in a tourist area requires a rigorous study of costs and potential profitability.

Calculate rental profitability

Consider the estimated annual rental income and compare it to the total cost of the investment (purchase price, notary fees, utilities, maintenance). A gross rental yield of 5% to 7% is generally considered a good indicator.

Prepare for unexpected costs

In tourist areas, maintenance costs may be higher due to the frequency of use and tenant requirements (furniture, air conditioning, swimming pool, etc.). Also allow for possible rental vacancy periods.

Build a reserve fund to anticipate unforeseen events and avoid financial stress.

Check local legislation and permits

Investing in a tourist area involves complying with certain specific rules.

Comply with seasonal rental regulations

Many cities impose restrictions on short-term rentals. Make sure the property you wish to purchase is eligible for rental use.

In Marrakech, local authorities may require a declaration to rent a property to foreign tourists.

Study the status of the property and the co-ownership rules

If the property is part of a condominium, check that seasonal rentals are permitted. Some residences impose strict rules regarding the use of common areas or tenant management.

Consult a notary or specialized lawyer to ensure the property's compliance before signing.

Favor turnkey or high-potential properties

Opt for rental-ready properties

If you want to quickly recoup your investment, choose a property that's already furnished or ready to welcome tenants. This avoids initial renovation or development costs.

A well-equipped and tastefully decorated property will more easily attract tenants and will receive better online reviews.

Consider properties to renovate with potential for appreciation

For more experienced investors, buying a property to renovate in a tourist area can offer a significant capital gain after the renovations. However, this requires a careful assessment of costs and timeframes.

Restoring a riad in the Fez medina can appeal to those who appreciate authenticity and significantly increase its value.

Surround yourself with competent professionals

Investing in a tourist area can be complex. Calling on local experts can help you secure your project.

Consult specialized real estate agents

Real estate agents familiar with the tourist market can guide you toward the most suitable properties and avoid pitfalls.

Work with a rental manager

If you can't manage the property directly, entrust rental management to an agency. They will take care of finding tenants, maintenance, and administrative formalities.

Compare managers' rates and choose an agency that offers comprehensive services, including tenant communication and maintenance.

Buying a property in a tourist area can be an excellent opportunity to diversify your assets and generate attractive income, provided you prepare your project well.

By choosing a strategic location, analyzing rental demand, and mastering the financial and legal aspects, you can reduce risks and maximize profitability.

Want to get started in tourist real estate? Explore Housing Place's offerings and find the perfect property for a secure and profitable investment!