Moroccan Real Estate: Transactions Surge Despite Price Dip in Q2 2024

In a note on the overall trend of the real estate market in the second quarter of 2024, BAM and ANCFCC explain that this decline is the result of a 0.6% drop in the prices of residential properties and land. Prices of commercial properties, on the other hand, recorded an increase of 0.4% during the period. The number of transactions, for its part, increased by 12.1%, i.e. 11.1% for residential and 25.6% for land, the note specifies. Sales of commercial properties, for their part, experienced a 2.3% decline.

In the second quarter of 2024, the Real Estate Asset Price Index (IPAI) remained relatively stable, with a 0.5% increase in land prices, stability in residential prices and a 0.3% decline in commercial property prices. As for the number of transactions, it recorded an 8.2% decrease, including 6.7% for residential properties, 10.2% for land and 15.9% for commercial properties.

By asset category, residential prices fell 0.6% year-on-year, due to a 0.4% drop in apartment prices, a 2% drop in house prices and a 1% drop in villa prices. Meanwhile, transactions rose 11.1%, with increases of 11.8% for apartments and 1.1% for houses, and a 2.6% decline for villas. Commercial property prices, on the other hand, rose 0.4%, including 0.2% for commercial premises and 0.7% for offices. As for transactions, they fell 2.3%, i.e. 3% for commercial premises and 1% for offices.

By city, we note a 0.1% increase in prices in Oujda and 1.4% in Agadir, stagnation in Rabat and Fès, and declines of 0.4% in Meknès and 1% in Tanger. The IPAI is calculated using the repeat sales method. Only properties that have been the subject of at least two transactions during the period concerned are taken into account.