Analysis of Riad Kasiya in Marrakech - Luxury Accommodation

The displayed price for Riad Kasiya is €20 per person for a meal. Considering an estimated area of 100 m², the price per m² for accommodation could be evaluated at €200 per m².

Based on public data from the DVF (Demand for Real Estate Value), the average price of riads in Marrakech is between €1500 and €3000 per m², depending on location and characteristics. Thus, Riad Kasiya is positioned in the lower range of the market, which could indicate an investment opportunity for luxury stays.

The price trend over the last 12 months in Marrakech shows a slight increase of 5% in luxury accommodation prices, which could be a positive factor for the future valuation of the property.

Deviation from the sector median:

• Price per m²: €200 (estimate)
• Market median: €2250
• Deviation: -89% (below the median)

For an investment in Riad Kasiya, the total acquisition cost would include notary fees, estimated at around 7% of the purchase price for an older property. If we consider an estimated purchase price of €150,000, the notary fees would therefore be around €10,500.

Loan Simulation:

• Loan amount: €135,000 (10% down payment)
• Interest rate: 3.4% over 20 years
• Estimated monthly payment: €785

Rental Yield:

• Estimated occupancy rate: 70%
• Gross annual rental income: €20 x 6 people x 365 days x 0.70 = €30,660
• Estimated annual charges (maintenance, management, etc.): 15% of gross rental income = €4,599
• Net rental income: €30,660 - €4,599 = €26,061
• Gross rental yield: 20.4% (€30,660 / €150,000)
• Net rental yield: 17.4% (€26,061 / €150,000)

Riad Kasiya is rated D for its Energy Performance Diagnosis (EPD). This means that energy consumption is relatively high, with an estimated annual energy cost of €1,200 for heating, hot water, and electricity.

Rental Bans:

• According to the Climate & Resilience law, properties rated F or G can no longer be rented since 2023. Riad Kasiya, being rated D, complies with current regulations.

Renovation Cost:

• To improve the energy class from D to C, the work could cost between €8,000 and €15,000, depending on the necessary improvements (insulation, heating, etc.).

Available Aid:

• MaPrimeRénov': up to €7,000 depending on the work done.
• Energy Savings Certificates (ESC): variable amounts depending on the work.

Riad Kasiya is located in the historic district of Marrakech, close to several major tourist attractions, such as the Medina and Jemaa el-Fna square.

Transport:

• Marrakech Airport: 6 km (about 15 minutes by car)
• Bus and taxi stations nearby, facilitating travel.

Amenities:

• Shops: several souks and boutiques within 500 meters.
• Schools: several educational institutions within a 1 km radius.
• Health: hospital and clinics within 2 km.

Demographics:

• Median income: about €300 per month for residents of Marrakech.
• Composition: predominantly young population, with a strong appeal for tourism.

Riad Kasiya is located in a low seismic risk area, but flooding can occur during heavy rains.

Local Urban Planning and Zoning:

• The Local Urban Planning Plan (PLU) of Marrakech imposes restrictions on renovations and constructions in the historic district.

Mandatory Diagnostics:

• The Energy Performance Certificate (DPE), lead diagnosis, and termite diagnosis are required for rental.

Rent Control:

• Currently, no rent control is in effect in Marrakech, but this could change with housing regulations.

The Riad Kasiya is positioned below the market median for similar riads in Marrakech.

Average Price of Similar Riad Properties:

• Price per m²: €2250
• Price of Riad Kasiya: €200 (estimate)

Factors of Overpricing or Underpricing:

• Advantages: proximity to tourist attractions, traditional atmosphere.
• Disadvantages: D rating on the energy performance certificate, which could deter some clients concerned about energy efficiency.

Estimated Negotiation Margin:

• Based on market prices, a negotiation margin of 10% could be considered, given the seasonal demand.