Moroccan Real Estate Market Surges as Expats Return Home for Summer

The real estate market is emerging from its stagnation of recent years. At the origin of this upturn, the government initiatives and the massive return of Moroccans living abroad (MRE). The latter are also among the beneficiaries of the new housing assistance program (Daame Sakane), with 23% of the 73,711 applications filed coming from this community as of May 23 (latest count). According to the Delegate Minister in charge of Relations with Parliament, government spokesman, Mustapha Baitas, Fès-Meknès is at the top of the ranking of beneficiaries by region, with 35.9% of the requests satisfied. Casablanca-Settat (34.54%), the Oriental (6.5%) and Tanger-Tétouan-Al Hoceima (around 4%) follow.

Launched by King Mohammed VI last October, the new housing assistance program aims to renew the approach to home ownership, by supplementing the purchasing power of households, through direct financial assistance to buyers. The amount of direct assistance to buyers is set at 100,000 dirhams for the acquisition of a property whose selling price is less than or equal to 300,000 dirhams including tax. The state will cover one third of the value of the property. For the acquisition of a property whose price is between 300,000 and 700,000 dirhams including tax, the proposed aid will be 70,000 dirhams. Only Moroccans residing in Morocco or abroad, who are not homeowners in Morocco and who have never benefited from housing assistance, are the beneficiaries of the aid.

Real estate demand has seen a gradual increase over the first four months of 2024, with supply growing even faster, according to a Mubawab report, noting that two and three bedroom apartments are particularly sought after, as well as those with an area of 50 to 100 square meters. But regional disparities have been noted. Marrakech and Agadir have seen an increase in demand. On the other hand, Casablanca, Rabat and Tangier have seen their supply decrease. These disparities do not negatively impact the Moroccan real estate market. It continues to attract foreign investors, particularly MREs residing in France, who represent the majority of foreign buyers.

The rental market is following the same dynamic, with demand and supply on the rise. Two-bedroom apartments are the most sought after, especially those of 50 to 110 square meters. This increased demand is not without consequences on rental prices. These prices have risen in the first quarter of 2024, more pronounced for empty apartments. Nevertheless: "the prospects for the real estate sector are generally positive, with an anticipated acceleration of growth in anticipation of international events such as the 2025 Africa Cup and the 2030 World Cup," comments the magazine Finances News hebdo. However, sustainable growth in the sector will inevitably depend on political and economic stability worldwide.