Morocco’s Real Estate Crisis Deepens: Sales Plummet 30% as Taxes Choke Market Growth

Between January and March 2025, sales fell by 30% compared to the previous quarter, according to data from Bank Al Maghrib, which specifies that prices remain stable (+0.1% for residential, -0.1% for land, -0.3% for commercial real estate). The figures for the second quarter of 2025 are not yet available. But professionals say the trend has not changed. "Developers are cutting their margins to compensate, but without a revision of the tax system, the sector risks remaining permanently blocked," explains Karim Amor, vice-president of the National Federation of Real Estate Developers (FNPI) to Médias24.

Volumes are in clear regression (-15.2% in one year across all categories), which indicates a drop in sales. Land is the most affected segment. Land sales fell by 33.1% in the 1st quarter, with prices down 2.5% and 16.4% in one year. Regarding commercial real estate, there is a decline of -31.4% in volume, with a 40.5% drop in office sales in the first quarter and a 4.2% drop in prices over one year. As for commercial premises, they recorded a 29% drop in the quarter and a 20% drop over a year. But their prices remain stable over one year.

The residential sector is not spared, with a 29.3% drop in volume in the quarter, compared to 29% for apartments, 34.6% for houses and 31.8% for villas. The drop in demand is a reality, but it does not reflect a lack of interest in the market, explains Karim Amor. "The problem mainly comes from the increase in transaction costs, which reach nearly 20% of the final price between taxes, land conservation and various fees." These charges, "from public and semi-public actors, directly impact the cost price of the developer and directly weigh on the purchasing power of the buyer," he points out. As a result, "the buyer may fall in love with a project, but faced with the final bill, he prefers to wait."

The vice-president of the FNPI also notes that the crisis in real estate is preventing modest households from accessing social housing, which represents nearly 80% of the national supply. "The annual production, estimated at 180,000 units, has fallen. Land is becoming scarce and expensive, and operators are stuck with a regulated price of less than 300,000 dirhams," he details. And to warn: "If social housing is permanently blocked, the entire value chain is threatened. The sector currently employs around 300,000 people, compared to 1.2 million in full swing." As solutions, he recommends a dialogue between "all the public actors concerned, the authorities, the bankers and the developers, to review the system and give the sector some oxygen."