Morocco’s Housing Assistance Program Sees Success Despite Informal Real Estate Transactions

The housing assistance program has been successful. According to figures provided by the Ministry of National Land Use Planning, Urban Planning, Housing and City Policy, more than 36,000 citizens, including 25% Moroccans residing abroad (MREs), have benefited from this program launched by the government in January 2024 to meet the needs of the middle class and low-income people. Requests have exceeded the threshold of 114,365. 32% of the beneficiaries are young people. 63% of them received financial assistance of 70,000 dirhams, while 37% received an amount of 100,000 dirhams. For 57% of the accepted applications, the price of the housing is between 300,000 and 700,000 dirhams.

Official statistics indicate an annual production of 113,000 housing units intended for low and middle income classes, including self-construction, but this supply remains far from meeting the real market demand. This "situation goes beyond the sole effects of the housing assistance program, which has nevertheless led to a 9.45% increase in cement sales, a 1.7% increase in the volume of real estate loans, and a 7.2% growth in loans granted to real estate developers," it is explained. However, the dynamics of real estate production face several challenges, including the proliferation of informal sales. Difficulties are therefore hidden behind the housing assistance program.

"The housing sector faces structural challenges that directly affect its ability to meet the growing demand, particularly from the middle classes and low-income households. [...] despite the efforts made to support this sector, several factors hinder its dynamics, the first of which is the proliferation of informal (’black’) transactions, which undermines transparency and distorts the real prices of real estate, while depriving the State of significant tax revenues," explained a real estate consultant and specialist in urban planning laws to Hespress. He also points to "the administrative obstacles related to obtaining building permits, which slow down the pace of real estate projects and increase their cost, which is reflected in the final prices of housing units".

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Another major challenge to be met: the scarcity of land and the stocks of unsold housing awaiting liquidation. "The scarcity of land, particularly in large cities, has led to a rise in land prices, further complicating access to affordable housing," warned the professional.