Why invest in student rental real estate in Fes or Marrakech?

Oct 9, 2024

Students in front of a building

Student rental real estate is one of the most attractive segments for investors in Morocco, especially in major university cities like Fes and Marrakech. These two cities, which annually host thousands of local and international students, offer an expanding rental market.

Thanks to continuous demand and still limited supply, investing in student rental real estate in Fes or Marrakech presents significant advantages, whether in terms of profitability, investment security, or long-term capital gain.

Let's explore why these two cities are ideal destinations for a student rental investment and how to get the most out of it.

A strong potential for student rental demand

Fes: A growing university city

Fes, a historical and cultural city, is also a major university city in Morocco. It hosts one of the largest universities in the country, University Sidi Mohamed Ben Abdellah, as well as several other specialized higher education institutions. With over 90,000 students, Fes ranks among the top cities in the Kingdom in terms of student population, and this demand continues to grow.

Many students, coming from different regions of Morocco and abroad, need accommodation close to their faculties. However, the supply of public university residences remains limited, pushing students to turn to private rental solutions.

Marrakech: An international academic hub

Marrakech, known for its tourism and cultural appeal, is also an increasingly dynamic university city. It houses several prestigious institutions, such as University Cadi Ayyad, as well as private institutions and international schools. With its varied academic programs, the city attracts many Moroccan students, but also a large foreign student population, especially from French-speaking African countries.

Marrakech also attracts internationally mobile students, whether as part of exchange programs or internships. This further increases the demand for well-located apartments that meet young tenants' needs.

Attractive and regular rental profitability

Stable rents and continuous demand

Investing in student rental real estate has the advantage of a constant demand. Students search for accommodation throughout the academic year, with high demand at the start of the school term and continuity for those staying for internships or additional training.

In student neighborhoods of Fes, an apartment can rent between 2,000 MAD and 3,500 MAD per month, depending on its location and offered services (furnished, internet access, proximity to transport, etc.). The regularity of rents guarantees a stable rental yield.

In Marrakech, rental prices are slightly higher, with apartments near schools and universities renting between 3,500 MAD and 5,000 MAD per month. With a constantly increasing student demand, rental real estate in Marrakech ensures regular and attractive income.

Studios or small apartments, close to campuses or well-served by public transport, are particularly popular with students. By focusing on this type of property, you will maximize your occupancy rate.

A low risk of rental vacancy

One of the most interesting features of the student rental market is the low vacancy rate. Students seek to settle in as soon as the academic year begins, and properties close to universities or higher education centers are quickly occupied. In Fez as in Marrakech, this high demand significantly reduces vacancy periods between two tenants.

A studio located near the Cadi Ayyad University in Marrakech will most of the time be occupied by students who string together academic years and internships, thus offering continuity of rental income without prolonged idle periods.

A relatively affordable investment cost

Fez: A still accessible real estate market

One of the great advantages of investing in student real estate in Fez is the affordable purchase price. Unlike cities like Casablanca or Rabat, where real estate prices are higher, Fez offers properties at still very competitive prices.

An apartment of 40 m² in a district close to the university, such as Narjis or Saiss, can be purchased for about 600,000 MAD to 800,000 MAD, thus offering attractive rental profitability, often exceeding 6%.

Marrakech: A strategic investment

In Marrakech, although prices are higher than in Fez, the potential for property appreciation and international student demand make it a preferred destination for investors seeking to diversify their portfolio. Marrakech is also a city where real estate remains attractive for tourism, allowing a certain flexibility of use for properties.

Districts such as Guéliz or Hivernage, close to schools and universities, are perfect for student real estate investment. They also benefit from proximity to tourist areas, offering the possibility of renting seasonally during periods when students are absent.

The advantages of student flat-sharing

Flat-sharing is an increasingly common practice among Moroccan and foreign students, particularly to share costs and live in more spacious apartments. For investors, flat-sharing offers an opportunity to maximize rental income while responding to growing demand.

Fez: Economical and practical flat-sharing

Fez, due to the large number of students with limited budgets, sees flat-sharing develop rapidly. By purchasing a larger apartment, you can rent each room to students, thus increasing your rental yield compared to renting a studio or a small apartment.

Concrete example: An apartment with three bedrooms in the Dhar Lmehraz district can be rented for 1,500 MAD per room, thus offering a total monthly income of 4,500 MAD, much higher than simply renting an apartment to a single tenant.

Marrakech: Strong demand for flat-sharing among international students

In Marrakech, flat-sharing is particularly popular among international students or those in exchange programs. They are looking for spacious, well-located apartments and share costs with other students. This maximizes rental profitability, especially if you offer additional services (Wi-Fi, cleaning, etc.).

Consider furnishing the apartment with modern and practical equipment to attract international students willing to pay a slightly higher rent for additional comfort.

Long-term appreciation prospects

Fez: A developing market

Although prices are still affordable in Fez, the city has strong potential for long-term real estate appreciation. With the expansion of universities and the construction of new campuses, the demand for student housing will continue to grow, leading to increased real estate prices in university neighborhoods.

Buying real estate in Fez in 2025, when prices are still relatively low, allows you to benefit from an interesting capital gain in the years to come, especially if the city continues its academic expansion.

Marrakech: A safe bet

In Marrakech, the real estate demand is driven by several sectors (tourism, expatriation, students). By investing in student rental properties, you not only benefit from the constant demand from students but also from a market in perpetual growth thanks to its international appeal. This guarantees a significant long-term appreciation.

Investing in student real estate in Marrakech not only ensures a regular income but also allows you to take advantage of a long-term capital gains in a city that is constantly evolving.

Conclusion: Fez or Marrakech, two ideal cities for a student rental investment

Whether you choose Fez or Marrakech, student rental real estate is a profitable and secure investment opportunity.

In Fez, the affordability of the real estate market, combined with strong student demand, allows you to optimize your rental income with a lower initial investment.

In Marrakech, you will benefit from a more dynamic market with high appreciation potential and an international student clientele.

In both cities, rental demand remains strong and constant, offering investors interesting security and profitability.

Ready to invest in student rental real estate in Fez or Marrakech? Discover the best offers on Housing Place and start building your future today.