Morocco’s Housing Market Faces Supply-Demand Mismatch as Buyers Struggle to Find Suitable Homes

"Since the increase that the supply experienced in Q2-2022, the trend is reversing in Q3-2022 with a 4.7% decrease. In parallel, and over the same period, demand is following a different trend than that of supply and is recording an increase of 2.1%. The last indicator to watch is the growth potential in the main cities. This third quarter, the growth potential still exists, i.e. the proportion of demand compared to that of supply is favorable for new growth opportunities. For example, in the city of Marrakech, demand is almost 3.8 times higher than supply," explains Kevin Gormand, CEO and co-founder of the Mubawab Group.

The imbalance between supply and demand is notably explained by the gloom that the real estate sector has been experiencing for a few months, reports La Vie éco. It was also noted that buyers are struggling to find an adequate offer, as real estate developers are unable to meet their demand. The latter responds to several criteria: location, area, type of housing, its composition, its equipment, etc. For example: developers are falling back on locations far from the city center due to the scarcity of land and the rise in prices resulting from saturation in the city. An option that does not suit a large segment of the clientele who take into account the proximity to the city center, places of attraction and their workplace.

Several experts have made recommendations, the consideration of which could solve this problem. They recommend reviewing the design of projects so that they are adapted to the needs of buyers, providing accurate data on the sector, particularly the value of properties, their nature and their evolution. They also recommend increasing the tax on undeveloped land, which will allow for a broader land base and boost real estate supply.