The hotel we are staying in is a converted riad—a former mansion—the Maison Árabe. Riads are sprinkled throughout the Medina—the part of Marrakech that is inside the ancient city walls. They don't look like much from the outside, tucked away as they are in narrow pedestrian-only streets.

Just as Norteamericanos have descended on San Miguel de Allende's old colonial homes in the Centro Historico, Europeans have rushed to snap up and restore the great houses of Marrakech. Using traditional methods and materials, these places are lovingly restored to a centuries-old look.

Coffered ceilings and lintels of carved cedar, marble or brick floors, walls plastered in a traditional mixture of marble dust and egg whites—all add up to a rich, warm look. Handcrafted tin and iron lamps and handwoven carpets help create the luxurious feel.

Ornate iron grills look out onto a courtyard where Bougainvillea climbs a wall.

Antiques, bought for a song in the Souk, add exotic detail.

The first European pioneers arrived about 50 years ago, just as Martha Hyder arrived in San Miguel in 1959. In Marrakech today it's the San Miguel land rush all over again. Remodeling activity is everywhere. Prices have risen astronomically. Even so, you can buy a place here for about half what you would pay in San Miguel. But you'd better hurry. The best places are going fast.