How to renovate a riad in marrakech and make It a profitable investment

Oct 7, 2024

the hall of a riad in Marrakech

Marrakech, with its historical heritage and enchanting atmosphere, attracts thousands of visitors every year. Buying and renovating a riad in the medina of Marrakech has become a popular strategy for investors looking to capitalize on the unique charm of these properties.

However, transforming an old riad into a profitable investment requires a well-thought-out approach, both in terms of renovation and rental management.

In this article, discover how to renovate a riad in Marrakech and maximize its investment potential.

Why invest in a riad in Marrakech?

Riads, these traditional Moroccan houses often hidden behind modest facades, are symbols of the history and culture of Marrakech. Restoring a riad not only allows you to enjoy the authentic ambiance of the city but also to make a potentially very profitable real estate investment.

A booming real estate market

The real estate market in Marrakech, particularly in the medina, continues to attract national and international investors. The demand for charming properties, notably riads, remains strong, whether for personal use, tourist rentals, or even guesthouses.

Many renovated riads in the medina of Marrakech have been transformed into guesthouses or luxury accommodations for tourists seeking authenticity. This allows owners to benefit from high incomes, especially during the high tourist season.

A high rental potential

Tourism in Marrakech, notably in the medina, generates high seasonal rental demand. A renovated riad can easily be rented to tourists looking for a unique experience, especially if it is well-located and restored in respect of traditional architecture.

Imagine offering your clients a complete immersion in the history and elegance of Marrakech, in a setting rich in history, while generating substantial income.

Steps to successfully renovate a riad in Marrakech

Renovating a riad is not a simple task, but with good preparation and careful supervision of the work, it can turn into an exciting and profitable project. Here are the key steps to successfully renovating your riad.

Choosing the right riad: location and potential

Choosing the right riad is a crucial step. It is important to consider its location, general condition, and renovation potential. Riads located in tourist districts or burgeoning areas, like Kasbah or Dar El Bacha, more easily attract tenants or clients, maximizing profitability.

When visiting a riad, check the condition of the basic structures (roof, walls, foundations) to evaluate the work to be planned. It is also essential to check if the riad is classified or if it requires specific authorizations for renovation.

A riad located in the medina, close to the main souks and tourist attractions, will be more successful than one located in an outlying area less frequented by visitors.

Obtaining the necessary authorizations

Before starting any renovation, it is important to ensure you have the legal permits to carry out the work. This includes building permits, renovation authorizations, and approvals from local authorities if the riad is classified.

Avoiding legal surprises is essential for the success of your renovation project. Take the time to fully understand local regulations and surround yourself with competent professionals.

Hire a local architect or an agency specialized in the restoration of riads in Marrakech. These professionals are well-versed in administrative procedures and local specifics, which will save you time and prevent mistakes.

Respect the authenticity of the riad

One of the most important aspects of renovating a riad is preserving its character and authenticity. Tourists and visitors are drawn to traditional Moroccan architecture, with its interior patios, zelliges, carved woodwork, and musharabiya.

Bet on local artisans who master traditional construction and decoration techniques, such as tadelakt (traditional plaster), ornate plasterwork, and handcrafted mosaics. This will add real value to your riad and attract clientele seeking authenticity.

A riad restored with local materials and artisanal techniques like tadelakt or zellige will have more impact on visitors than if it is renovated in a modern way, without regard for its history.

Modernize the facilities without sacrificing charm

While authenticity is a strong point of riads, modernizing infrastructure is equally essential to attract clients. Ensure the riad has modern amenities (comfortable bathrooms, reliable electricity, Wi-Fi, air conditioning), while maintaining its traditional character.

You can install modern equipment in a discreet and non-intrusive manner. For example, invisible heating or cooling systems can be integrated to preserve the aesthetics of the place.

Estimate costs and control the budget

Renovating a riad can be costly, depending on its initial condition and the work to be done. It's important to accurately assess the cost of the work before starting and to allow a margin for the unexpected.

Obtain detailed quotes from local artisans and seek advice from renovation experts to accurately estimate the total project cost. Include authorization fees, taxes, and site management costs in your plan.

Renovating a 200 m² riad can cost between 500,000 and 2,000,000 MAD, depending on the materials used and the scope of the work. Set aside about 10% as a reserve to cover potential unforeseen expenses.

Monetize your riad: Strategies to maximize income

Once your riad's renovation is complete, you have several options to make your investment profitable. Here are the most effective strategies to generate income from your property.

Rent the riad as a seasonal rental

The seasonal rental market in Marrakech is booming, notably thanks to the popularity of platforms like Airbnb and Booking. A well-located and well-renovated riad can attract tourists all year round, allowing you to generate high rental income, especially during tourist seasons.

A 5-bedroom riad can rent for between 1,000 MAD and 3,000 MAD per night, depending on its location and the quality of the services offered. By renting your riad 20 days per month, you could generate a considerable monthly income.

Ensure your riad stands out from the competition by offering additional services such as concierge services, guided tours, or even a private hammam.

Convert the riad into a guesthouse

Another option is to convert your riad into a guesthouse, a very popular endeavor in Marrakech. This solution allows you to maximize revenue by offering a complete experience to visitors, while capitalizing on the high tourist demand in the city.

Offer your customers a unique experience, where they feel welcomed as if they were at home, while discovering Moroccan traditions is an immense satisfaction. A well-managed guest house can retain its visitors and benefit from word-of-mouth.

Resale with capital gain

If you have carefully renovated the riad and it is well located, you can consider selling it with a nice capital gain. The demand for restored riads is high, especially among international buyers. This can be an excellent strategy if you wish to quickly recover your investment.

A riad purchased for 1,000,000 MAD and renovated for 1,500,000 MAD can be sold for over 3,000,000 MAD, depending on the location and the quality of the finishes.

Conclusion: An exciting and profitable project

Renovating a riad in Marrakech and turning it into a profitable investment requires time, patience, and careful management of the work, but it is a project that can offer incredibly satisfying results.

Whether you want to turn it into a guest house, a seasonal rental, or resell it for profit, a well-renovated riad can generate substantial income while maintaining a strong connection to the cultural heritage of Marrakech.

Ready to embark on the renovation of a riad in Marrakech? Discover the opportunities available on Housing Place and find the property that matches your ambitions.