Morocco’s Commercial Real Estate Sector Shows Resilience Amid COVID-19 Challenges

The real estate component and the professional segment have been affected by the health crisis related to covid-19. The professional segment is in quasi-stagnation, it is observed. "The professional or industrial real estate segment may experience a pause, but not a decline, because, unlike residential real estate, it is an investment by necessity (establishment, opening, expansion, etc.)," explains a real estate advisor to La vie éco.

"Moreover, one of my clients currently needs a 5 ha industrial space to launch a new activity," he adds. He will explain that "a transition of 3 to 6 months is necessary from the date of deconfinement to see the orientation of this branch of real estate".

"Professional real estate will have to move more towards rental, more flexible and requiring less capital than towards sales. It should also be said that in the coming months, FDI and new establishments of international companies are likely to decline sharply. This will represent an opportunity for tenants to negotiate price reductions or change locations. Within Capital Foncier, we are counting on a 10 to 15% drop in rents," said Moncef Lahlou, CEO of Capital Foncier.

However, the prospects are rather good for this segment of the real estate sector in the medium term. "If, in the short term, the sector will have difficulty recovering, no concern is to be expressed in the medium or long term. One of the main reasons lies in the momentum created by the country by turning to local products," he stressed.