Why Finding Titled Small Houses in the Medina of Marrakech is Rare

The vibrant and historic Medina of Marrakech is one of the most sought-after areas for real estate investment. Its winding streets, traditional riads, and centuries-old buildings hold a special allure for both local and foreign buyers. However, when it comes to purchasing small houses in the medina, one challenge often emerges: the low probability of finding titled properties. While some buyers may feel hesitant to invest in untitled properties (Melkia), understanding the reasons behind the lack of titled small houses can help make informed decisions.

What is a Titled Property?

In Morocco, a titled property is one that is officially registered with the Moroccan government’s land registry, known as the Conservation Foncière. This registration provides legal security and clarity of ownership, making it easier for buyers to verify property ownership and for banks to approve mortgages. Titled properties are typically considered more straightforward in legal terms, especially for foreign buyers.

Why Are Small Titled Houses Rare in the Medina?

1. Historical Ownership Structures

   • Much of the medina’s property has been passed down through generations of families using the traditional Melkia system. Under Melkia, ownership is recorded through handwritten deeds rather than formal government registration. These properties often remain unregistered because families may not have seen the need to go through the bureaucratic process of regularizing ownership when ownership passed between relatives.

   • Additionally, the concept of registering property in the land registry is relatively modern, and many families in the medina have continued to follow traditional practices without transitioning to the formal titling system.

2. Complexity of Shared Ownership

   • Many properties in the medina are under shared ownership, with multiple family members having a stake in the property. This is especially common with smaller homes, where the rights to the property are divided between numerous heirs. These shared ownership structures often complicate the process of regularizing ownership and obtaining a formal title. The process of gathering all necessary parties to agree to the sale or registration can be lengthy and complex, which discourages families from converting these homes into titled properties.

3. Cost and Bureaucracy

   • For many small homeowners in the medina, the cost of regularizing a property into the titled system can be prohibitive. Not only is the process time-consuming, but it also requires legal fees and dealing with bureaucratic hurdles. For generations, families have lived in and passed down their homes without needing to register them, and many have chosen to avoid the expense and effort of obtaining a title.

4. Traditional vs. Modern Property Systems

   • The Melkia system is deeply ingrained in Moroccan culture, especially in historic parts of cities like Marrakech. For centuries, this system has worked for families without the need for a formal title. The transition to the formal titling system is often seen as unnecessary for many small, family-owned homes, especially when these homes are seen as long-term family assets rather than potential investments.

   • In many cases, families who own small homes in the medina are not looking to sell their properties, further reducing the likelihood that they will go through the process of regularization.

5. Size and Value Considerations

   • The smaller properties in the medina may not represent significant enough value to justify the time and effort involved in formalizing the title. Larger riads or properties intended for commercial use are more likely to be titled, as they hold greater financial value and are more likely to attract outside buyers. For small homes, however, the cost of titling can outweigh the perceived benefit, especially if the property is expected to stay within the family.

Should Investors Be Concerned About Buying Untitled Properties?

While the lack of a formal title might seem like a red flag for some buyers, it’s important to understand that Melkia properties are still legally valid and widely accepted in Morocco. In fact, many investors have successfully purchased and renovated untitled properties in the medina, often converting them into titled properties after purchase.

Here’s why foreign investors shouldn’t shy away from considering untitled properties:

1. Potential for Regularization:

   • With the right legal assistance, Melkia properties can be regularized and converted into titled properties. This process may take time, but it is a standard and widely used legal pathway in Morocco.

2. Lower Prices:

   • Because Melkia properties are typically seen as more complex, they are often sold at a lower price than titled properties. This gives buyers the opportunity to invest in prime medina real estate at a more affordable cost, with the potential for significant value appreciation after regularization.

3. Renovation Opportunities:

   • Many of the untitled small houses in the medina have great renovation potential. Investors can purchase these properties at a lower price, invest in their renovation, and either regularize them or resell them at a higher value.

Navigating the Medina Real Estate Market

While it’s true that the probability of finding titled small houses in the Medina of Marrakech is low, this doesn’t mean you should be discouraged from investing. The rich history of the medina and the untapped potential of Melkia properties make this market highly appealing for the right investor. By working with knowledgeable local real estate professionals, you can navigate the legalities of purchasing untitled properties, ensuring a secure and profitable investment.

How We Can Help You

We specialize in guiding foreign investors through the intricacies of buying untitled properties in Marrakech’s medina. Our experienced team understands the challenges of Melkia ownership and can assist you with the legal processes required to regularize these properties. From verifying ownership to managing paperwork and regularization, Hawazine.com is here to ensure that your investment in Marrakech real estate is both smooth and secure. Let us help you unlock the potential of the medina’s unique and historic properties.