Morocco’s Real Estate Market Faces Paradox: Prices Rise Despite Falling Demand

Apartment prices recorded an increase in the 4th quarter of 2022 and the average price per square meter increased by +2.1% while that of apartments stood at 10,500 dirhams, according to Mubawab cited by Aujourd’hui Le Maroc. The supply of new and old apartments fell by 7.9% and demand by 11.9% in the 4th quarter, the same source points out.

"The prices of old villas increased by 5.2%. As for old apartments, prices between the 3rd and 4th quarters of 2022 increased by 0.9%. Year-on-year, the overall price of old properties depreciated by -3.5% with a drop of -5.8% for villas and stability for apartments," it is specified. The same trend is observed for the price of new properties which "increased by 0.8%, with an increase of 2.5% for villas and a slight decrease of -0.3% for apartments" in the 4th quarter of 2022.

With an increase of 9.9% for villas and a decrease of -2.1% for apartments, the overall price of new properties experienced a jump of 4.3% on average, year-on-year. The Mubawab Price Index fell by 0.3% in the fourth quarter compared to November 2022, standing at the same price level as in September 2022, which represents a decrease of 0.77% compared to the same period of the previous year, or -1 point of the IPM.

"Casablanca, Agadir and Marrakech are the cities with the most stable prices for apartments, recording price changes between -1 and +1%," it is specified.