September 18, 2024

Complete Guide: Real Estate Investment in Essaouira

Table of contents

Essaouira: The Bohemian Jewel of Moroccan Real Estate

Real Estate Investment in Essaouira

Welcome to the captivating world of Essaouira, the city of trade winds, where Moroccan authenticity meets irresistible bohemian charm. At Kensington Morocco, we don’t just offer you real estate, but a gateway to a unique lifestyle, blending centuries-old tradition with cosmopolitan modernity.

Imagine yourself as the owner of a restored riad in the listed medina UNESCO World Heritage Site, where every stone tells a thousand-year-old story. Or perhaps you prefer a contemporary villa facing the ocean, combining modern comfort with the wild beauty of the Atlantic coast? In Essaouira, these dreams come true, and Kensington Morocco is your trusted guide to make them come true.

Why Essaouira Is the Best Kept Secret of Savvy Investors

An Ideal Investment Microclimate

Essaouira enjoys an exceptional microclimate, with mild temperatures all year round ranging between 20°C and 25°C. This mild climate, coupled with the refreshing sea breeze, makes it a destination of choice for a variety of visitors:

Water sports enthusiasts:

Ideal wind conditions for kitesurfing and windsurfing, attracting enthusiasts from all over the world.
Consistent waves for surfing, offering year-round opportunities for beginners and experienced surfers alike.
High season from April to November, ensuring sustained rental demand for much of the year.

Tourists in search of authenticity:

More peaceful and authentic alternative to Marrakech or Agadir.
Appealing to independent travelers and families looking for a rich cultural experience.
Growing demand for characterful accommodation, such as renovated riads or charming guest houses.

Artists and creatives:

Unique light and bohemian atmosphere attracting painters, photographers and musicians.
Need for combined work and living spaces, creating opportunities for multi-purpose properties.
Contribution to a dynamic cultural scene, strengthening the tourist appeal of the city.

This diversity of visitors ensures a constant and varied rental demand, promising high occupancy rates throughout the year.

Yields as Regular as the Trade Winds

Prepare for financial performance as reliable as the winds of Essaouira:

Attractive rental yields:

Annual rental income potential of 5% to 7% of the purchase price for well managed and well located properties.
Example: A renovated 200m² riad, purchased and restored for €400,000, can generate between €20,000 and €28,000 in annual rental income.

Stable capital appreciation:

Average annual growth of 3% to 5% over the last five years.
Renovated riads in the medina have seen their value increase from 20% to 30% on average over the last five years.

Expanding real estate market:

Continued investments in tourism and cultural infrastructure, supporting market growth.
Development of new high-end residential areas, offering investment opportunities in modern properties.

A Leading Cultural and Artistic Destination

With its world-renowned Gnaoua Festival and thriving arts scene, Essaouira has established itself as a must-see cultural destination. This cultural wealth translates into unique opportunities for real estate investors:

Sustained rental demand:

Sophisticated international clientele, looking for authentic and culturally rich experiences.
Demand peaks during major cultural events, such as the Gnaoua Festival (June) or the Atlantic Andalusia Festival (October).

Multipurpose spaces:

Growing demand for properties combining housing and creative spaces (artists' studios, galleries).
Example: A 300m² riad in the medina, transformed into an artist residence with a gallery on the ground floor, can generate income both through room rental and through artistic events.

Evolving Creative Ecosystem:

Attractive to visionary investors in innovative projects combining art, accommodation and shared work spaces.
Development of emerging artistic districts, offering purchasing opportunities at attractive prices before gentrification.

Kensington Morocco Expertise: Your Compass in the Winds of Opportunity

At Kensington Morocco, our in-depth knowledge of Essaouira is your key asset in navigating this unique market. Our expertise is demonstrated through several key aspects:

Privileged access to the most exclusive properties:

Established network of local owners and notables, giving us access to off-market properties.
Partnerships with the city's best artisans and restaurateurs for authentic, quality properties.

Detailed analysis of investment opportunities:

Team of local analysts providing quarterly market reports on trends and prices by neighborhood.
Customized financial modeling for each investment, taking into account local tax and regulatory specificities.

Tailor-made support:

Project management from A to Z, from finding the ideal property to renting it out, including renovation.
Network of local experts (architects, decorators, managers) to optimize every aspect of your investment.

Expertise in specific regulations:

In-depth knowledge of the laws governing properties in the UNESCO-listed medina.
Assistance in obtaining the necessary permits for renovation and restoration work.

Essaouira: A Unique Blend of History and Renewal

A City with a Rich Past, Looking to the Future

Essaouira, formerly Mogador, is a living testimony to Moroccan history:

Perfectly preserved 18th century Medina:

Listed as a UNESCO World Heritage Site since 2001, ensuring its long-term preservation and appeal.
Unique restoration and investment opportunities in historic properties.

Strong commitment to heritage preservation:

Rehabilitation programs supported by local authorities and international organizations.
Public investments in improving the infrastructure of the medina increasing the quality of life and property values.

Sustainable development projects:

Rehabilitation of the fishing port, combining modernization of infrastructure and preservation of traditional character.
Creation of innovative cultural spaces, such as the transformation of old warehouses into art galleries and performance spaces.

Neighborhoods That Captivate and Capture the Essence of Essaouira

The Medina: The Historical and Artistic Heart

Authentic Riads:

Entry price: from €250,000 for a 150-200m² riad to renovate. Fully restored luxury properties can reach €500,000 to €800,000.
Example of return on investment: A 200m² riad purchased for €300,000 and renovated for €100,000 can be rented for between €150 and €250 per night in high season.

Constant rental demand:

Potential annual rental income: Between €25,000 and €40,000 for a well-located and well-managed riad, with an average occupancy rate of 50-60% over the year.

Business opportunities:

Creation of boutique hotels, combining the authenticity of a riad with modern hotel services.
Investment for a small boutique hotel (5-7 rooms): €400,000 to €600,000, including purchase and renovation.

Special considerations:

Renovation costs: On average, expect to pay between €500 and €800 per m² for a quality renovation.
Importance of working with qualified local craftsmen for renovations, respecting traditional techniques.

New Town and Borj: Modernity and Comfort

Luxury apartments and villas:

Price: From €1,200/m² for new apartments, and €1,500/m² for villas.
Example: A 100m² apartment with sea view, purchased for €150,000, can generate an annual rental income of €8,000 to €12,000.

Premium residential complexes:

Concierge services, swimming pools, green spaces, attracting a demanding international clientele.
Entry cost: From €200,000 for a villa in a secure complex.

Potential for added value:

Average annual appreciation of 3% to 5% over the last five years.
Continuous development of infrastructure and services, increasing the attractiveness of these areas.

Diabat: The Future Seaside Eldorado

Land and development projects:

Land purchase opportunities from €50/m² for undeveloped land, up to €150/m² for land ready to build on.
Investment example: A plot of land of 1,000m² purchased for €75,000 today could see its value increase from €30% to €50% in the next 5 years with the development of the area.

Eco-responsible projects:

Growing demand for wellness retreats and eco-friendly accommodations.
Typical investment: €300,000 to €500,000 for the creation of an eco-lodge with 8 to 10 rooms, including the purchase of land and construction.

Why Investing Now is Crucial

Niche market for exceptional goods:

Although the entry price is higher, starting at €250,000 for a riad to renovate, these properties remain competitive compared to similar properties in other popular destinations.
Example: A renovated 200m² riad in the medina of Essaouira, purchased and restored for a total of €400,000, could sell for more than €600,000 in Marrakech or comparable European coastal cities.

Growing and diversified demand:

Annual increase of 8% to 10% in the number of tourists over the last 5 years.
Growing interest from digital nomads, creating a new niche for medium-term rentals.

Major infrastructure projects:

Improved road connections: new motorway reducing travel time from Marrakech to 2.5 hours.
Expansion of Essaouira airport, with new international connections planned.
Expected impact: increase of 10% to 20% in real estate value in the next 5 years.

Favorable regulatory framework:

Simplified procedures for foreign investors.
Possibility to repatriate profits and proceeds of sale without restriction.
Tax benefits: exemption from property tax for the first 5 years for new constructions.

Exceptional quality of life:

Cost of living 30% to 40% lower than in Western Europe.
Ideal climate all year round, with average temperatures between 18°C and 28°C.
Cultural and artistic wealth, offering a unique lifestyle to owners and tenants.

Emerging Trends in the Essaouira Real Estate Market

The rise of co-living and co-working spaces:

Responding to the growing demand from digital nomads and entrepreneurs.
Investment opportunities in properties adaptable to these new ways of living and working.

The development of eco-responsible projects:

Capitalizing on the green and sustainable image of Essaouira.
Growing interest in construction using local materials and traditional techniques.

The growing interest in authentic experiences:

Demand for properties offering immersion in local culture.
Opportunities to create unique accommodation concepts, combining tradition and modern comfort.

Your Next Step to a Unique Investment

Essaouira offers you a rare opportunity: investing in a real estate market that combines authenticity, growth potential and exceptional quality of life. Whether you dream of restoring a century-old riad, owning a modern villa with an ocean view, or embarking on an innovative project, Kensington Morocco is your trusted partner to make your ambitions a reality in Essaouira.

Why Choose Kensington Morocco?

Unparalleled Local Expertise:

More than 15 years of experience in the Essaouira real estate market.
A multilingual team with a perfect understanding of the subtleties of the local market.
Privileged relationships with key players in the city (authorities, artisans, developers).

Tailor-made service:

Personalized support throughout your investment project.
From finding the ideal property to rental management, including renovation and furnishing.
Legal and tax advice to optimize your investment.

Exclusive Portfolio:

Access to off-market properties, carefully selected for their investment potential.
Properties ranging from historic riads to innovative contemporary projects.
Investment opportunities in developing areas with high potential.

Transparency and Ethics:

Detailed market analyses and realistic financial projections.
A commitment to ethical and sustainable business practices.
An approach focused on creating long-term value for our customers.

Next Steps for Your Investment

Personalized Consultation:

Make an appointment for a free consultation with one of our experts.
We will discuss your investment goals, budget and preferences.
We will present you with a detailed analysis of the Essaouira real estate market and current opportunities.

Selection of Goods:

Based on our consultation, we will offer you a selection of properties that match your criteria.
Organization of virtual or physical visits according to your availability.
Providing comprehensive files for each property, including history, current condition and investment potential.

Support in Purchasing:

Negotiating on your behalf to obtain the best terms.
Complete assistance for all administrative and legal procedures.
Coordination with notaries, banks and other stakeholders for a smooth transaction.

Post-Purchase Services:

Project management for necessary renovations or developments.
Implement a rental strategy if you want to generate rental income.
Rental management and maintenance service for complete peace of mind.

Invest Now to Take Advantage of Essaouira's Potential

There has never been a better time to invest in Essaouira. With its unique blend of historic charm, cultural vibrancy and modern development, the city offers investment opportunities for all profiles:

For history and culture lovers: authentic riads in the medina, offering total immersion in traditional Morocco.
For investors looking for modernity: luxury apartments and villas in new districts, combining comfort and attractive rental yield.
For visionaries: land and development projects in Diabat, the next frontier of tourism development in Essaouira.

Whatever your vision, Kensington Morocco is here to make it happen. Our commitment goes beyond the simple real estate transaction; we aspire to be your trusted partner in creating a sustainable and valuable real estate portfolio in Essaouira.

Don’t miss this unique opportunity to invest in one of Morocco’s most promising destinations. Contact Kensington Morocco today and start your journey towards a successful real estate investment in Essaouira.

Contact us: Kensington Morocco

Let the winds of Essaouira carry you to your next exceptional investment. The Kensington Morocco team looks forward to welcoming you and guiding you on this exciting adventure. Together, let’s transform your investment dreams into a tangible and profitable reality in the magnificent city of the trade winds.

Access our catalog: Essaouira Special