New vs Old Property in Morocco
New or old property? Understand the differences in price, taxation, maintenance, rental yield and risk before investing in real estate in Morocco.
What is new and old property in Morocco?
New property refers to recently built units or properties delivered less than 5 years ago, compliant with modern standards. Old property includes homes older than 10 years, often renovated. The choice impacts price, taxes, maintenance and rental potential.
Purchase price: new vs old
New properties are generally 15% to 25% more expensive than old properties for similar surface areas. Old properties usually offer more room for negotiation and more affordable prices in major Moroccan cities.
Maintenance and running costs
New properties have low maintenance costs during the first years, while old properties may require regular renovations. Condominium fees can also be higher for older buildings depending on their condition.
Rental yield comparison
In general, old properties offer slightly higher rental yield thanks to lower purchase prices, despite similar rental income. New properties attract investors through easier management and the possibility of premium rents.
Taxes and financial advantages
New real estate in Morocco can benefit from tax reductions and VAT exemptions in certain programs, while old properties are subject to standard transaction taxes and rental income taxation.
Location and attractiveness
New developments are often located in suburbs or newly planned areas, while old properties are usually found in historic city centers, close to transport and amenities, offering immediate rental demand.
Advantages and disadvantages
| Type | Advantages | Disadvantages |
|---|---|---|
| New | Modern standards, low maintenance, developer warranties | Higher price, sometimes peripheral location |
| Old | Attractive price, central location, higher rental yield | Possible renovation works, unexpected costs, older standards |
Rental yield simulation (example)
Long-term rental scenario
| Type | Purchase price (MAD) | Annual rent (MAD) | Annual costs (MAD) | Gross yield (%) | Net yield (%) |
|---|---|---|---|---|---|
| New | 1 500 000 | 72 000 | 15 000 | 4.8 | 3.8 |
| Old | 1 200 000 | 72 000 | 20 000 | 6.0 | 5.3 |
Short-term / tourism rental scenario
| Type | Estimated annual rent (MAD) | Annual costs (MAD) | Gross yield (%) | Net yield (%) |
|---|---|---|---|---|
| New | 90 000 | 20 000 | 6.0 | 4.9 |
| Old | 95 000 | 25 000 | 7.9 | 6.3 |
City-by-city analysis
Major Moroccan cities show significant differences between new and old properties:
- Casablanca: central old property with strong rental yield, new developments in suburbs with modern comfort.
- Rabat: well-located old property near administrations, new property in planned districts.
- Marrakech: old property in historic center for tourism, new property in residential outskirts.
- Tangier: renovated old or new developments, high yield in both cases.
- Agadir: seaside old property for short-term rentals, new property as secondary residences.
Capital gains and resale value
Well-renovated old properties often generate higher capital gains in city centers. New properties offer more stable but usually lower short-term appreciation. Over 5–10 years, renovated old property can outperform new developments in value growth.
Investment strategies
Old property: focus on central location, renovation and shared rentals to maximize yield.
New property: target VAT-reduced programs, energy-efficient labels and ten-year warranties for security and premium rents.
Taxes and financing in 2026
Reduced VAT applies to certain new developments, while registration fees apply to old properties. Bank financing conditions are similar, with interest rates around 6–8% depending on duration and property type. Charges and insurance affect net yield. Planning financing and taxation before purchase is essential to optimize ROI.
FAQ — New vs Old Property in Morocco
Should I choose new or old property for investment?
The choice depends on your goals: safety and comfort → new property; higher rental yield and central location → old property.
Are maintenance costs really lower in new properties?
Yes, new properties benefit from developer warranties and modern standards, reducing maintenance during the first years.
Can I get tax advantages when buying new property in Morocco?
Yes, some new developments offer VAT exemptions and tax reductions, especially social or promotional housing projects.
Does old property always require renovation?
Not always, but many old properties require refurbishment or upgrades depending on age and condition.
Which offers better rental yield: new or old?
Old property often delivers higher gross yield (6–8%) due to lower purchase prices, while new property remains stable but usually lower (5–6%).
Conclusion
The choice between new and old property in Morocco depends on your investment strategy:
– New property: safety, comfort, tax incentives, premium rents.
– Old property: attractive price, central location, higher rental yield with maintenance to plan.