Investing in a 1-bedroom, 1-bathroom riad: off-plan or existing – which option should you choose?

In brief: Between an existing riad and one purchased off-plan or in need of renovation at Marrakech, there is no single model that is universally the best option: the choice depends on the available budget, the timeframe accepted before the first income is generated, the level of construction risk tolerated, and the investor’s residency status.

A riad built to plan or an existing riad with Marrakech: two distinct investment approaches

A riad is a category of tourist accommodation defined by Moroccan Law No. 80-14, which has been in force since 4 August 2015: a house featuring traditional Moroccan architecture and décor, offering accommodation and, incidentally, catering and entertainment, operated on a commercial basis.

Since 24 December 2024, the designation «riad» or «ryad» has been reserved for establishments that comply with the current classification system, whether located within the old medina or outside it, and whether in a historic building or a reconstructed one.

Two approaches to acquisition coexist. The riad from a plan is purchased before its construction or renovation is completed. The existing riad has already been built, refurbished or is in operation, and can be viewed before signing.

In the first five months of 2026, classified tourist accommodation establishments (EHTC) recorded a total of 6.05 million overnight stays and an occupancy rate of 72.%, up 10.% year-on-year, according to data from maroc.ma as at the end of May 2026.

Common criteria for comparing a riad on the drawing board with an existing riad

To compare the two models objectively, we need to apply the same criteria to each. Seven factors underpin the decision:

• The purchase budget and payment terms.
• The timeframe before the site opens for tourism.
• Regulatory compliance and tourist classification.
• Securing title to the property.
• Bank financing available depending on residence status.
• The tax regime applicable depending on the type of operation.
• Key factors for developing a profitability scenario.

These criteria are set out in full in the table below and are then explained in detail section by section.

A riad built to plan and an existing riad with Marrakech: a comparative table

The table sets out the criteria above, distinguishing between what has been established by the sources consulted and what still needs to be verified on a case-by-case basis.

The difference between the two models is less a matter of regulation than of timing: the requirements are identical, but the timetable differs. With an existing riad, its condition and status can be checked immediately, whereas with a riad built to plan, this check is postponed until completion.

A riad built to plan or an existing riad: a comparison, criterion by criterion

Each criterion is set out here, along with its specific mechanism and the actual differences between the two models.

Purchase budget and observed price ranges

What is the price of a riad at Marrakech? The active listings viewed in the medina range from 1,550,000 to 4,750,000 MAD: one riad in need of renovation a 110 m² property north of the medina for 1,550,000 MAD, a 135 m² turnkey riad south of the medina for 3,000,000 MAD, a riad with title deeds, requiring renovation, with a floor area of 196 m² to the east of the medina for 4,000,000 MAD, and a traditional four-bedroom riad in the centre of the medina for 4,750,000 MAD.

For a riad sold off-plan, the sources consulted do not provide a directly comparable public equivalent. The entry price and profitability specific to off-plan riads are the subject of a separate analysis, distinct from this comparison, as payment in instalments during construction follows a different logic to that of a property that has already been built.

Timeframes prior to opening for tourism

An existing, turnkey riad can start operating quickly, as soon as its classification has been verified or granted. A riad built from plans or in need of renovation requires the time taken for construction or renovation work before an application for classification can even be submitted, which delays the first income by that same amount.

Regulatory compliance and tourist classification

The operation of a riad is governed by Law No. 80-14 and its implementing regulations: Decree No. 2-22-867, Decree No. 2-23-441, Orders No. 835-24, No. 985-24 and No. 987-24, which have been in force since 25 January 2023. This framework sets out building standards, classification scales and application forms for operating licences.

Since 1 May 2026, the classification of riads rated 3 stars and above has included «mystery visits»: anonymous assessments of the customer experience, carried out at the time of the initial classification – which is valid for seven years – and then at each renewal, every five years.

For an existing riad, compliance is verified at the time of purchase. For a riad built to plan, the application for classification is only submitted after completion, which postpones the verification process but does not exempt it from being carried out.

Land tenure security and bank financing

The title deed, issued by the ANCFCC, certifies the legal and physical condition of the property as at the date of the application. The special mortgage registration certificate, issued by the same agency, confirms whether or not there is a registered mortgage. These two checks apply equally to existing properties and to land or off-plan developments.

In practice, I always recommend asking for both of these documents for the specific property in question: one never replaces the other, and if either is missing, it complicates any subsequent resale.

Claire Emeriau

The purchase of property is one of the recognised forms of foreign investment in Morocco. When financed in foreign currency, it entitles the purchaser to a convertibility scheme for the transfer of income and proceeds from the sale. Non-residents and Moroccans living abroad may also obtain a loan in dirhams, capped at 80 % of the purchase or construction price.

Taxation and developing a profitability scenario

The tax regime depends on the structure chosen, not on the form of ownership. Direct operation by a natural person is subject to business income tax. Operations carried out by a company are subject to corporation tax, at a rate of 20 % in principle, rising to 35 % when net profit reaches 100,000,000 MAD, in accordance with the General Tax Code 2026. Accommodation and catering remain subject to VAT at 10 %, with the right to deduct input VAT.

To put a figure on a scenario, there is a benchmark for rents on short-term at Marrakech: between July 2025 and July 2026, AirDNA reports an annual occupancy rate of 57 %, an average rate of 115 USD per night sold, and average annual revenue of 22,400 USD, based on 12,523 active listings.

In the cases we are involved with, I regularly see project leaders simply adopting this average occupancy figure at face value, without adjusting it to reflect the number of rooms or the actual level of service provided.

Claire Emeriau

This benchmark covers short-term lettings across all property types at Marrakech, not just the segment of listed riads: it does not obviate the need to draw up a separate operating account for the property in question, taking into account the neighbourhood, number of bedrooms, commissions, payroll and maintenance costs.

Advantages and disadvantages of each model

Neither model offers any absolute advantage: each advantage mentioned remains linked to the corresponding criterion, as described above.

Off-plan riads: advantages and limitations

• Strengths: customisable layout, compliance with classification standards from the design stage onwards, and payment often spread out over the duration of the works.
• Limitations: time taken before the first revenue is generated, risk of construction delays, lack of a directly comparable retail price benchmark.

Existing riads: strengths and limitations

• Strengths: potentially faster commissioning once the classification has been verified; operational history may be available to support a profitability scenario.
• Limitations: the price may include a premium for a property that has already been renovated; it is necessary to check the structural condition and ensure that the classification is accurate.

Which option should you choose based on your investor profile?

Someone looking for a quick income and limited exposure to construction site risks will tend to opt for a existing riad, whether already registered or in the process of being registered, subject to verification of the title deed and any mortgages on the property.

An investor with a longer-term horizon, who wishes to have control over the structure or the entry price, will be more likely to opt for a riad from a plan, taking into account the time required for construction and subsequent classification.

For a profile non-resident, for both models, buyers can take out a loan in dirhams up to a maximum of 80 % of the price, and benefit from a convertibility scheme if the purchase is financed in foreign currency.

Finally, the choice between operating as a sole trader or as a company determines the tax regime: income tax for a sole trader, corporation tax for a company. This status should be decided before the purchase, regardless of the model chosen.

Neutral conclusion: whether it’s on the drawing board or already in place, the decision depends on your criteria

Neither model is definitively superior. An existing riad reduces uncertainty regarding the property’s condition and the time taken to bring it into use; a riad built to plan may offer greater flexibility in terms of design and the payment schedule, but at the cost of having to bear the construction risks.

What really distinguishes the two options is a set of checks specific to the particular property in question: title deed, mortgage status, classification status and the tax regime applicable to the proposed arrangement. A detailed cost estimate, based on these verified factors, is preferable to any general average when deciding between a property already in use and a project to be built or renovated.

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