Why do small spaces rent better in cities?

Buildings with apartments

In major Moroccan cities like Casablanca, Rabat, and Marrakech, small properties, whether studios or one- or two-room apartments, are particularly sought-after on the rental market.

But what explains this popularity? Is it simply a question of price, or are there other factors at play?

Let's explore the reasons behind this phenomenon and what it means for owners and investors.

Sustained demand: Who rents small spaces?

Before going into details, it is important to understand the profile of tenants who prefer small spaces in urban areas.

Students: An essential target

Moroccan cities are home to several universities and colleges, attracting thousands of students each year. These students generally seek accommodation close to campuses or well-served by public transportation. Studios or small apartments are ideal for their needs: enough space for one person at a reasonable price.

Young, active and single people

With increasing urbanization, many young professionals are moving to the city to take advantage of career opportunities. These tenants favor smaller spaces, ideal for individual living and accessible to those on limited budgets. Neighborhoods close to business centers, such as Sidi Maârouf in Casablanca or Agdal in Rabat, are particularly popular.

Tourists and expatriates

The growth of tourism and the arrival of expatriates in Morocco are also boosting demand for small spaces for short- or medium-term rentals. A well-located studio in a tourist city like Marrakech can easily generate a stable income thanks to platforms like Airbnb.

The advantages of small spaces: Why are they so attractive?

Financial accessibility

The main advantage of small spaces is their cost, both for tenants and owners.

• For renters: A studio or one-bedroom apartment is often much more affordable than a larger apartment, especially in urban areas. For example, a studio in Rabat can cost between 2,500 and 4,000 dirhams per month, compared to 6,000 dirhams or more for a three-bedroom apartment.
• For investors: These properties are generally less expensive to purchase and offer excellent rental yields. The purchase price of a studio or small apartment is recouped more quickly thanks to constant demand.

Simplified rental management

Small areas are often easier to maintain and manage:

• Maintenance work is less expensive due to the smaller size.
• The risk of non-payment is generally lower because tenants of small spaces often have well-calculated budgets.
• Rental vacancy periods are shorter because demand is high.

A strategic location

Smaller properties are often located in central areas or close to amenities (transport, shops, universities, employment areas). This makes them a popular choice for those who want to reduce their commute and enjoy city life to the fullest.

Why is investing in a small space a good idea?

If you are a homeowner or considering a rental investment, small properties offer several strategic advantages.

An attractive rental yield

The ratio between purchase cost and rent is often more attractive for a smaller space. For example, a studio purchased for 700,000 dirhams can generate a rent of 4,000 dirhams per month, offering a gross yield of over 6%, which is competitive in the Moroccan market.

Almost constant demand

Unlike large retail properties, which often target more demanding families, small retail properties benefit from a larger pool of tenants, particularly among young people. This guarantees regular occupancy and stable income.

Flexibility of use

Smaller properties are ideal for short-term rentals, particularly in tourist cities like Marrakech or Tangier. This allows owners to explore other models, such as vacation rentals, which can generate higher returns.

An opportunity to seize

Small properties dominate the urban rental market for one simple reason: they meet growing and diverse demand.

Whether you're an investor, a homeowner, or a future tenant, it's crucial to understand the dynamics of this segment to get the most out of it.

With Housing Place, you can easily find properties that meet your needs.

Explore our platform now to discover ideal small properties in major Moroccan cities.