Morocco’s Real Estate Crisis Deepens: World Cup 2030 Hopes Clash with Market Slump

"Transactions are virtually at a standstill for several months," warns the National Federation of Real Estate Developers (FNPI), cited by L’Économiste, adding that the inflation of construction material prices, linked to the rise in oil prices, could be reflected in the selling prices of housing. According to official data, sales have declined by 30 to 40%. The figures are more alarming in reality, says a member of the FNPI. The return of Moroccans living abroad (MRE) during the summer did not produce the expected results. "MREs, faced with galloping inflation and a purchasing power crisis in their host countries, no longer consider real estate purchase as a priority," explains a source cited by the specialized daily.

The real estate market is also facing a shortage of buildable land, not only in large cities like Casablanca, Rabat, Tangier, Marrakech or Agadir, but also in medium-sized cities, widening the gap between supply and demand. Administrative slowness is another problem facing the sector. Professionals denounce an abnormal processing time of files that can go up to a year, which slows down investment. "Local taxation, in particular the tax on undeveloped land (TNB), is also criticized for its negative impact," we read.

Contrary to previous summers when real estate sales experienced an increase, the trend is downward this year. No transaction has been recorded since June, laments a notary in Casablanca. A situation that would be due to a blockage of the Tawtik platform, used for the management of notarial sales, following a cyber attack. In addition, the housing assistance program "Daam Sakan" is struggling, particularly in large cities. Its impact is "limited," acknowledges the president of the FNPI, who calls for reforms to make it more effective. The organization of the 2030 World Cup is a boon to revive the sector, it is assured, stressing the need to build all types of housing (studios, duplexes or luxury villas) to accommodate the thousands of visitors expected for this global event.