Investing in Oued Laou: our market analysis
Oued Laou is a popular seaside resort in northern Morocco, an hour’s drive from Tetouan along the Mediterranean ring road. Its pleasant beach and landscaped corniche make it a lively destination in summer, and many visitors, drawn by the place and by property prices well below those of Martil, end up considering buying there.
Written by Adil Medina, director of Groupe Medina
Graduate of the École Nationale de Commerce et de Gestion (ENCG), specialised in market research (marketing)
Based in Tetouan / Martil
If prices are low, there is a reason. Cheap is not necessarily a bargain, and expensive is not necessarily a bad deal. Everything is relative — and only a serious analysis can settle it.
But as we always remind people: here is the analysis we make of Oued Laou, on yield, management and appreciation.
A seasonality that does not forgive
Oued Laou is a seaside resort — there is not enough residential rental demand to consider long-term letting. The investment can therefore only be justified by short-term rental. And that is where the problem lies.
Unlike Martil, which has grown into a real town and generates rental activity all year round — admittedly weaker in the low season, but real — Oued Laou operates on an activity window of about one month: from mid-July to the third week of August. A few isolated bookings may come in here and there, but not enough to make a viable business.
≈ 1 month
of real activity: from mid-July to the third week of August.
≈ 10 months
during which the property is technically unused.
Costs
that keep running: building fees, maintenance, damp, dust and mould.
In practical terms, your property is technically unused for nearly ten months a year. During that time, costs keep running: building management fees, maintenance, and the silent damage caused by winter damp, dust and mould on furniture and finishes.
More and more properties, less and less income
40,000 – 70,000 DH
gross annual yield — at best.
The gross annual yield is around 40,000 to 70,000 DH — at best. Once cleaning costs, energy costs and management fees are deducted, the net margin becomes very thin.
The trend does not favour the investor: summer demand exists, but it stagnates from one year to the next, while supply keeps growing. Every season, new properties join the market, competition between listings intensifies, and income per property erodes. Mid-range listings — which are the vast majority of investors — earn less and less year after year.
On-site management: an extra headache
Unless you are on site all the time, you will need someone to manage your property. And that is where an extra difficulty arises.
Oued Laou is a small market — people able to manage a short-term rental seriously are almost non-existent. You will find locals who improvise as managers during the summer months to top up their income, with no procedures, no standards and no fallback if something goes wrong.
Building a lasting business in these conditions is an illusion — and trying to follow everything remotely quickly turns what was meant to be an investment into a constant source of stress.
Promises that are out of date
If the yield is disappointing, can the property’s increase in value over time justify the investment?
Development projects for Oued Laou have been circulating for more than twenty years. The resort is still the same. Morocco is experiencing real and sustained economic growth, but that growth comes with priorities — and Oued Laou is not one of them. There is too much potential still to develop in areas that are already active for the State to focus its efforts there in the near future.
In this context, the local property market remains stagnant. There are more sellers than buyers, liquidity is low, and the exit — if you have to sell — looks difficult.
We prefer to wait for concrete signals before recommending buying and holding a property in this market.
Oued Laou, as the market stands today
As the market stands today, Oued Laou does not have the conditions needed to justify a rational real estate investment — neither in terms of yield nor of appreciation.
If you like Oued Laou, keep enjoying it. Book a place when you want to stay there. But do not let that emotional bond turn into an investment that weighs on you.
For a rental investment in the area, Martil remains by far the strongest alternative — strong seasonal demand, longer stays, a liquid market and much more attractive yields. Our dedicated guide will give you a complete picture of the market.