Moroccan Expats Boost Real Estate Sector Amid Global Economic Challenges

The price of construction materials has doubled, according to a survey conducted by the external services of the Ministry of Industry and Trade. The price of glass is now 260 MAD/m², while that of copper, aluminum and Inox has recorded a record increase of 61%, 51% and 39%. "Today, the sector’s activity is running at a slow pace," confides William Simoncelli, CEO of Carré Immobilier, to Challenge. But that was without counting on the contribution of Moroccans abroad.

According to a recent study by real estate expert Mubawab, the return of MREs at the beginning of 2022 boosted real estate supply and demand, recording an increase of +19% and +15% respectively. "Even if the enthusiasm seems to be there, the MRE market is a bit timid compared to the pre-crisis years. Historically, MREs invested a lot in real estate in Morocco, however, some elements have led to a paradigm shift," explains Kevine Gormand, CEO of Mubawab.

And to add: "The first element is that fraud and delivery delays have greatly impacted many MREs. And the second is the aging of the population (the latter was more inclined to invest in Morocco), the new generations tend to invest more in Europe." According to a study by the ministry in charge of MREs, "nearly 60%" of MREs invest in the real estate market in Morocco, acquiring "housing or land to build a property." MREs have a preference for metropolises like Tangier, Casablanca, Fez, Meknes, Marrakech and Agadir.

These properties generally serve as secondary residences for MREs (summer vacations), or are inhabited by relatives or rented out. "What works well are small apartments in the city center," explains the CEO of Mubawab. Since 2015, the Minister of Economy and Finance has issued Order No. 3005.15 to set the value of taxes on residential, commercial and administrative premises for MREs. The text provides for a VAT of 10% for the MRE who wishes to take out a mortgage to acquire social or economic housing.