1. The assignment: a price “justified by the yield”
A typical residential appraisal in Marrakech. An investor — often an MRE or European buyer — is interested in an apartment of about 85 m² in Guéliz, two bedrooms, a well-kept 2000s building, operated for three years as a short-term furnished rental. The seller quotes a price well above the district's transactions, with a simple argument: the Airbnb income. Armed with screenshots of March and April, he extrapolates an annual revenue, applies a flattering yield, and derives his price. The question put to the expert: does this reasoning hold?
Guéliz lends itself to the case: the district concentrates most of Marrakech's “new town” apartment market and a large share of the short-stay supply — segment orders of magnitude are documented in our analysis of Airbnb rental yields in Marrakech. But the reasoning applies to any apartment run as a tourist let in Morocco.
2. The reference method: comparison, because the market is housing
For an apartment, the marginal buyer — the one who sets the price — remains overwhelmingly an occupier or patrimonial investor, not a hotel operator. The relevant market is therefore the residential sales market, and the reference method direct comparison (RICS VPS 5): recent transactions of comparable Guéliz apartments, adjusted for floor, condition, area, lift, parking and exact position.
That comparison value already embeds part of the rental potential: in Guéliz, buyers know a well-located apartment lets easily — it is in the prices. Adding a separately computed “Airbnb premium” on top often amounts to counting the same advantage twice.
3. Income, yes — but net, normative and at the right rate
💡 Illustrative example (teaching assumptions, not market references)
On a typical assignment, moving from advertised gross to normative net incomefrequently strips out on the order of one third to one half of the gross, once occupancy is annualised and full costs deducted — and the capitalisation rate required for a tourist operating income exceeds that of a secure residential rent. Combined effect: the corrected “income value” comes back down, in most cases, towards the residential comparables range. When a seller claims a much higher value, one of these three restatements is almost always missing. Actual ratios are calibrated assignment by assignment, on the property's real track record.
4. Highest and best use: when can the operation found the value?
Valuation standards reason in highest and best use: the most productive use that is physically possible, legally permissible and financially feasible. For our Guéliz apartment the decisive test is the second: short-stay operation presupposes a secured framework — co-ownership rules that do not prohibit it, compliance with rules applicable to tourist accommodation, tax regularity of declared income. The expert verifies these points; an unsecured use does not found market value and is analysed, at best, as a separately documented conditional scenario.
- If the operation is secured and demonstrated (reliable track record, compliant framework): normative net income becomes a genuine second pillar of value, confronted with the comparables and any gap explained.
- If it is not: value remains that of the residential market — and the buyer should know it before paying a premium for a business model they may not be able to continue.
5. Reading the divergence between the two methods
- Convergence: comparison and capitalised normative net tell the same story — robust conclusion, tight range.
- Income well above: either the normative income is still optimistic, or the property enjoys a genuine operating advantage (exceptional short-stay location, scarce authorisation) that the sales market does not price — the expert documents which, and for whom that extra value is realisable.
- Income well below: the operation does not justify district prices; a pure yield investor should walk away, and value remains carried by residential patrimonial demand.
In every case the conclusion rests on the deepest market — for an apartment, residential sales — and the report explains the gap rather than hiding it.
6. The deliverable
Our RICS-certified experts deliver a report compliant with the RICS Red Book: signed and adjusted comparables, normative net income rebuilt from the actual track record, co-ownership and use-compliance verifications, method crossing and a reasoned conclusion. The report is bilingual FR/EN. Firm quote within 24h, from MAD 3,500 excl. VAT. ReaConsult, founded in 2019, has delivered more than 5,000 appraisals across Morocco (4.9/5 from 47 client reviews). See also our apartment valuation service and the Marrakech appraisal hub.
What is the report for? Negotiating against a price “justified by the yield”, deciding with full knowledge whether the premium asked matches a real, transferable advantage, and securing financing on a defensible value. One useful clarification: a private appraisal informs and supports amicable negotiation; in court litigation the judge appoints the judicial expert, and your report then serves as technical reference for your counsel.
Being sold an apartment “on the yield” in Marrakech?
RICS-certified experts — signed comparables, rebuilt normative net income, verified use compliance. Bilingual FR/EN Red Book report before you commit.
Note: This article presents a general methodological framework and a teaching case. All parameters mentioned (areas, incomes, ratios) are illustrative assumptions, not market references. Rules applicable to tourist accommodation and co-ownership apply case by case: confirm your situation with a professional. For a documented valuation, see our real estate appraisal service or the ReaConsult blog. French version: version française.