Investing in Marrakech: The Best Neighborhoods for High Airbnb Returns (Backed by Data, Not Guesswork)

Marrakech has become one of the fastest-growing short-term rental markets in North Africa.

Every year, millions of travelers visit the city looking for authentic riads, luxury villas, modern apartments, and unique vacation rentals.

As a result, more investors are entering the market hoping to generate passive income through Airbnb and other short-term rental platforms.

But here's the reality: not every property in Marrakech is a good Airbnb investment.

Two riads located just a few streets apart can generate completely different annual revenues. Two apartments with identical sizes can have occupancy rates that differ by more than 30%. One neighborhood may produce exceptional returns year after year, while another struggles with seasonality and inconsistent demand.

At co-hostbnb, we've worked with property owners and investors across Marrakech, and we've learned one important lesson: successful investors don't buy based on emotion—they buy based on data.

In this guide, we'll explore the neighborhoods that consistently perform well for short-term rentals, explain why location matters more than ever, and show you how professional investors analyze a market before purchasing a property.

Marrakech Is Not One Market

One of the biggest mistakes first-time investors make is treating Marrakech as a single real estate market. It isn't.

Each neighborhood attracts a different type of traveler. Each area has different occupancy rates, average daily rates (ADR), booking patterns, seasonality, operating costs, and guest expectations.

This means that your investment performance depends just as much on where you buy as what you buy.

The Historic Medina: Still the Strongest Airbnb Market

When it comes to short-term rental performance, the historic Medina continues to be one of Marrakech's most resilient investment zones.

More specifically, riads located within walking distance of Jemaa el-Fna Square consistently attract travelers seeking an authentic Moroccan experience. Guests visiting Marrakech often dream of:

• Traditional riads with central courtyards
• Rooftop terraces overlooking the city
• Moroccan architecture & artisanal craftsmanship
• Local souks & historic landmarks
• Walkable neighborhoods with deep cultural immersion

For these travelers, staying in the Medina is part of the experience—not just accommodation. This creates a level of demand that many newer residential districts simply cannot replicate.

Well-renovated riads close to Jemaa el-Fna often achieve stronger occupancy throughout the year and command higher nightly rates than comparable properties in less central locations.

Luxury Neighborhoods Continue to Attract Premium Travelers

Areas such as Hivernage, Guéliz, and parts of the Palmeraie continue to perform well for different traveler profiles:

• Business travelers often prefer modern apartments in Guéliz.
• Luxury travelers seek private villas with pools in the Palmeraie or Hivernage.
• Families may prioritize gated security, parking, and easy accessibility.

The key is ensuring your property matches the expectations of the guests who choose that specific location. Buying a luxury apartment in an area dominated by cultural tourism—or a traditional riad in a neighborhood favored by business travelers—can reduce your overall performance.

Stop Buying with Emotion. Start Buying with Data.

One of the most common mistakes we see among investors is purchasing a property because:

• "I heard this neighborhood performs well."
• "My friend owns an Airbnb here."
• "This area feels popular."
• "The property is beautiful."

Unfortunately, real estate investment doesn't reward assumptions. It rewards research.

Seasonality Changes Everything

Marrakech enjoys strong tourism throughout much of the year, but demand is not constant. There are periods when occupancy naturally slows.

Ramadan, for example, often brings different travel patterns depending on domestic and international demand. Other months may also experience lower occupancy compared to peak tourism seasons.

If your financial projections are based only on high-season revenue, you're likely overestimating your annual return. Professional investors don't ask "How much can I earn in December?"—they ask "What is my realistic annual revenue after accounting for every season?"

Why AirDNA Is One of the Most Valuable Tools for Investors

Before purchasing any Airbnb property, professional investors validate their assumptions using market data. One of the most widely used platforms for this purpose is AirDNA.

AirDNA aggregates performance data from Airbnb and Vrbo listings around the world, providing investors with valuable insights before making a purchase.

For a specific neighborhood, AirDNA allows you to evaluate key metrics such as:

• Estimated annual revenue
• Average Daily Rate (ADR)
• Occupancy Rate
• Revenue seasonality & booking trends
• Property type & bedroom count performance
• Comparable listings & historical market data

This transforms property investing from speculation into informed decision-making.

Analyze Comparable Properties Before You Buy

Another major advantage of using AirDNA is the ability to study properties that closely match your prospective investment.

Compare listings with similar property type, bedroom count, guest capacity, amenities, and micro-location.

Instead of asking "How much could my riad make?", ask: "How much are similar riads already generating today?" That's a far more reliable benchmark.

Revenue Means Nothing Without Occupancy

Some investors focus exclusively on nightly rates; others only look at occupancy. Neither metric tells the full story.

A property charging a high nightly rate but remaining empty for long periods may generate less annual revenue than a property with a slightly lower ADR and consistently high occupancy. Successful investors always evaluate the complete picture:

• Average Daily Rate (ADR)
• Occupancy Rate
• Annual Revenue & RevPAN (Revenue Per Available Night)
• Seasonality & operating expenses
• Net ROI

Don't Forget Operating Costs

Gross revenue is exciting. Net profit is what matters. Before buying, calculate all recurring expenses:

• Property taxes & insurance
• Cleaning costs & linen management
• Maintenance & repairs
• Staff salaries (housekeeper, cook, concierge)
• Utilities (water, electricity, Wi-Fi)
• Airbnb service fees & property management fees
• Initial renovation or furnishing costs

A property generating impressive top-line revenue can still deliver disappointing returns if operating expenses are ignored. Always evaluate profitability—not just gross income.

Questions Every Investor Should Ask Before Buying

Before making an offer on any property in Marrakech, ask yourself:

• What is the average annual revenue for similar listings?
• What is the realistic average occupancy rate?
• What is the Average Daily Rate (ADR)?
• How does demand change throughout the year?
• Who is my target guest?
• Is this neighborhood growing?
• How many direct competitors already exist?
• What operating costs should I expect?
• Is this investment decision based on data or assumptions?

If you can't confidently answer these questions, it's probably too early to buy.

Final Thoughts

Marrakech remains one of the most attractive destinations for short-term rental investment. But great cities don't automatically create great investments.

The highest-performing investors don't buy the most beautiful property—they buy the property with the strongest fundamentals. They analyze the market, study seasonality, compare similar listings, and evaluate annual performance rather than peak-season income.

Most importantly, they let data guide every decision. Because in real estate investing, confidence is good—data is better.

Thinking About Investing in Marrakech?

At co-hostbnb, we help real estate investors make smarter short-term rental decisions before they buy.

Using professional market analysis, AirDNA insights, Airbnb performance data, neighborhood comparisons, revenue projections, and operational expertise, we help you identify properties with the strongest income potential and avoid costly investment mistakes.

Whether you're buying your first riad, expanding your Airbnb portfolio, or looking for a dedicated virtual assistant to manage operations, our goal is simple: help you invest with data—not emotion—and maximize your long-term return on investment.