Morocco’s Housing Subsidy Program Falls Short of Expectations, Only 8,500 Beneficiaries So Far

The Moroccan government launched the housing aid program for first-time buyers last January. It provides a subsidy of 100,000 dirhams for the purchase of a home worth less than 300,000 dirhams including tax, and 70,000 dirhams for a home priced between 300,000 and 700,000 dirhams including tax.

As of April 1, some 60,976 applications have been filed via the Daam Sakan platform, announced Prime Minister Aziz Akhannouch, specifying that 90% of registrants are eligible. The government has planned an annual budget of around 9 billion dirhams for the implementation of this program, which should impact 330,000 families over the period 2024-2026, or 110,000 families per year. To date, 8,500 people have benefited from direct housing aid, informs Maroc Diplomatique.

The Head of Government has reassured that no increase in housing prices is planned, denying rumors of a possible price increase for homes at 300,000 dirhams in major cities like Casablanca and Rabat. Citizens of certain regions like Er-Rich or Zagora will be able to acquire their homes at 250,000 dirhams, the official said, adding that the State subsidizes this purchase up to 50%.

In its implementation, this program has caused a lot of discontent, particularly among real estate developers who have denounced the administrative burdens and lengthy procedures regarding the obtaining of building permits, as well as the rather long processing times, from six months to a year and a half. They believe that the housing aid program has not met expectations and are awaiting clarification from the government on the number of homes authorized for construction since January 1, eligible for the aid program.