Morocco’s Real Estate Market Faces Supply Crunch as Demand Surges

The Moroccan real estate market presented an alarming imbalance in 2024: supply has become scarce, recording a significant contraction of 9.95%, while demand has shown a notable increase of 15.46%. In detail, the demand for apartments increased by 17.48%, compared to only 10.54% for villas. It reached record levels in May (9.3%) and August (9.4%) and stabilized at 8% at the end of the year. The same trend is observed for villas, with peaks in May (9.39%) and August (9.49%). Figures that show the seasonal nature of real estate purchases in the kingdom.

On the other hand, the supply has experienced a notable decline, particularly in the apartment segment, which has plummeted by 10.46%. Overall, the supply has shown relative stability throughout the year 2024, recording a slight peak in July (8.63%). However, significant declines have been noted in the cities of Casablanca and Rabat. In the apartment segment, there is a drop in supply across all cities, with 22% and 16% for Rabat and Casablanca, 8% for Marrakech. Regarding villas, the supply also shows a decline, particularly in Rabat and Casablanca, with 18% and 7% respectively.

This contrast between supply and demand has had negative effects on apartment and villa prices, the study notes, indicating that the national average sale price of apartments reached 12,340 DH per m² in 2024 and has varied depending on the cities. Thus, it was 18,180 DH in Rabat, 14,720 DH in Marrakech, 14,310 DH in Casablanca, 12,840 DH in Tangier and 12,010 DH in Agadir. The average sale price of villas, on the other hand, is around 13,980 DH per m². It reached 19,410 DH in Casablanca, 15,890 DH in Agadir, 13,990 DH in Rabat, 13,880 DH in Tangier and 12,910 DH in Marrakech.

In 2024, the Moroccan real estate market was also marked by strong foreign demand, with France in the lead (53% for apartments and 49% for villas). In the apartment segment, we find countries like Belgium (8%), the Netherlands (6%), the United States (5%), Canada (4%), the United Kingdom (4%), Spain (4%), Germany (3%), Italy (2%) and Switzerland (2%). Regarding villas, foreign demand comes from this list of countries, to which are added the United Arab Emirates (2%).

In rental, demand has increased by 4.73% (12.29% for apartments and 5% for villas), while supply has decreased by 5.34% (3.53% for apartments and over 1% for villas). By city, Tangier stands out with a 20% increase in apartment demand, followed by Marrakech (+17%) and Agadir (+18%). On the other hand, Casablanca experienced a 9% decline. For villas, there is a significant increase in Marrakech (22%) and Rabat (14%), stability in Tangier and a 3% decline in Agadir. As for the rental supply, it has stabilized around 8%, with a general decline noted in Casablanca, Marrakech and Agadir (10%) and an exceptional 8% increase in Tangier.