Morocco’s Mortgage Rates Set to Surge Amid Rising Inflation

According to estimates by specialists, "at a minimum, the debit rates will increase by 50 basis points (bps). Bank rates could even increase by up to 80 bps depending on the risk assessment," reports Les Inspirations Eco.

To explain this trend, professionals have mentioned the expected increase in the pass-through of the rise in the key rate announced by Bank Al-Maghrib. With the expected increase in household spending due to historically high inflation over the past 30 years, the bill could be steep. And its first effects are already being felt: the non-performing loan ratio of the portfolio of individuals and Moroccans residing abroad stood at 9.3% at the end of August, it is explained.

This situation risks slowing down the investment of developers who will have to integrate this data into their calculations. "Which will temporarily slow down the real estate market," warns the same source. To cope with this, developers could lower their prices a little more, to support demand, pending the implementation or not of new incentives as part of the 2023 Finance Act.