Rental Investment: A Market That Continues to Offer Strong Potential

The rental market continues to offer numerous opportunities. While residential property provides reassurance thanks to the depth of demand, offices and retail premises can generate higher returns, at the cost of greater selectivity.The real estate market is brimming with opportunities, whatever people may say, at least when it comes to rental investment. In Casablanca, rental investment is no longer limited to the residential sector. Offices and retail premises are also attracting investors seeking higher returns.

Residential property remains, by far, the most accessible segment. Unable to purchase real estate, many people continue to turn to renting. In the Casablanca market, small-sized properties account for a significant share of rental demand, particularly in central neighborhoods.

In Maârif, for example, selling prices range from around MAD 960,000 to MAD 1.15 million for studios or apartments measuring 45 to 50 m².

For rental properties, comparable units are listed at around MAD 6,500 to MAD 7,000 per month, or even more, depending on their condition and location.

At these levels, gross yields generally stand at around 5% to 6% and can rise above 7%, depending on the property’s location and condition. It must be said that residential property retains a significant advantage, namely the depth of its rental market.

There are numerous tenant profiles, and vacancy periods for appropriately positioned properties can remain relatively limited. “Generally, three criteria influence the return on a property: the vacancy rate, the discount and liquidity. Residential property involves few risks, apart from the client’s solvency,” explains Nabil Nour, founder of groupi.ma, a collective real estate purchasing platform. It must also be said that regulations are not necessarily in the landlord’s favor. To maximize returns, some property owners favor short- and medium-term rentals, selecting tenants who stay for periods ranging from a few months to a maximum of two years, generally “digital nomads,” including consultants, freelancers and employees working fully remotely.

Offices Are Catching Up

Commercial real estate, meanwhile, remains more exposed to fluctuations in professional demand. Location, building quality, parking availability, accessibility, pedestrian traffic and the layout of the floor space all play a decisive role. A small, flexible and well-located space can quickly find a tenant, whereas a large, poorly adapted floor space may remain vacant for several months.

In any case, demand is clearly present, as is supply. One only has to look at the multitude of construction projects dedicated to office floor space emerging across Casablanca. Belvédère is a concrete example.

The area, known primarily for its residential character, is beginning to change as several commercial properties are being developed. This trend is explained by strong demand, certainly, but also by construction costs, which are significantly lower than those of residential properties.

“Commercial real estate does not require any particular finishing work, unlike residential properties. It only needs a façade, an elevator and parking. After that, tenants are free to arrange the interior space according to their needs,” adds Nour.

While the gap between yields on residential properties can be substantial, yields tend to converge for this type of property. “We are seeing more or less the same prices between Aïn Sbaâ and Abdelmoumen, for example, ranging from MAD 110 to MAD 250/m². In Oasis, rental prices can reach MAD 200/m², while they stand at around MAD 150 to MAD 180/m² in Maârif and Palmier,” our source adds. Consequently, the yield ranges from 7% to 8% for professional leases and from 9% to 10% for commercial leases.

The Gap Widens in Retail

Selectivity is even greater in the retail sector. This is undoubtedly the segment where differences in yields are most significant. Just a few dozen meters apart, two premises of the same size can command radically different values. The length of the shopfront, pedestrian traffic, vehicle traffic, visibility, the commercial environment, the possibility of conducting certain activities on the premises and the technical layout of the unit all directly affect the rent.

Listings observed in Casablanca clearly illustrate this. In Maârif, a premium retail property that is already rented out is being offered for around MAD 6.9 million, with a monthly rent of MAD 52,000, representing a gross yield close to 9%. In the same neighborhood, another unit measuring approximately 130 m², offered for MAD 7 million and rented out for MAD 25,000 per month, yields barely 4.3%.

In this segment, the property itself is therefore not enough to determine its value. The lease, the quality of the tenant’s brand, the remaining lease term and the reliability of the tenant’s commitment—in other words, the tenant’s ability to meet its obligations—are almost as decisive as the location itself. “Other factors also come into play, such as the population density and purchasing power of the area where the property is located,” Nour points out. Thus, a retail property rented to a strong brand under a secure lease does not have the same profile as a vacant unit, even when the latter has a more attractive acquisition price.

Casablanca and Tangier Offer the Highest Yields

Gross rental yields in Morocco remain attractive by international standards. According to Global Property Guide, they averaged 7.31% in the first quarter of 2026, compared with 6.72% during the same period of the previous year. Casablanca and Tangier recorded the highest levels, with an average yield of 8.3%. In the economic capital, two-bedroom apartments even reached 9.03%.

Marrakech followed closely, with an average of 8.25%. Rabat presented a more varied picture, with yields ranging from 5.04% to 8.74%, averaging 6.92%. Agadir ranked last, with yields ranging from 4.18% to 5.35%, averaging 4.76%.

This overall improvement is explained in particular by stable acquisition prices, or even prices trending downward, while rents remain firmer.