Morocco’s Real Estate Market Heats Up: Rental Demand Surges as Supply Tightens

Demand recorded a 17% increase while supply fell by 20% in the first half of 2024 compared to the same period in 2023. Prices have seen a slight increase, particularly in the apartment segment. The rental market, on the other hand, has stood out with rising demand and declining supply, according to a real estate specialist website in Morocco.

This interesting dynamic is notably marked by an average 3.7% increase in selling prices compared to 2023, reaching 12,100 dirhams per square meter for apartments, including 11,900 DH/m² for the old, up 10%, and 12,480 DH/m² for new (2%). This trend is more noticeable in Tangier and Marrakech where prices have increased by 7 and 12% respectively, with average prices of 12,650 DH/m² and 14,550 DH/m². In Rabat and Agadir, there is a respective increase of 3 and 2%, with average prices of 18,090 DH/m² and 11,640 DH/m². Casablanca comes out with a 1% increase, for an average price of around 14,600 DH/m².

The same dynamic is observed for the villa market, with a price reaching 13,800 DH/m² for the old and 14,200 DH/m² for the new, representing increases of 5 and 2% respectively compared to the first half of 2023. By city, Marrakech shows an 11% increase, with an average price of 14,710 DH/m². It is followed by Agadir (16,260 DH/m²), Tangier (14,980 DH/m²) and Casablanca (19,090 DH/m²) with respective increases of 9, 3 and 2%. On the other hand, these prices have seen a slight 4% drop in Rabat, settling at 18,850 DH/m².

With the exception of Casablanca, the rental market has shown an interesting dynamic. Tangier and Marrakech stand out with a significant increase in demand, up to 30%. On the other hand, supply has fallen by 30% in Marrakech and "almost all cities, except Kenitra and Fez", notes the site, adding that in Fez, it "has remained unchanged for three to four years. The sales rates are around one apartment per year for the middle-range segment and two for social housing. As for Kenitra, although the sales rates were previously very high, they have fallen over the past year due to market saturation".

In terms of average rental prices, the trend is also upward, both for furnished apartments (7% and 8,250 DH) and unfurnished apartments (3% and 9,200 DH). For villas, there is a 6% increase, with an average price of 26,100 DH for unfurnished villas and 7% for 27,500 DH for furnished villas. In terms of areas, the national average has fallen by 2%, or 105 m² for unfurnished apartments and increased by 1% for furnished apartments, standing at 91 m².

"The price difference between unfurnished and furnished apartments in Casablanca is not very marked. On the other hand, in Marrakech, this gap is significant (more than 1,500 DH). This situation is explained by the fact that in Marrakech, apartments are rented out all year round. Furnished units, in particular, have higher rates, as they are mainly intended for rental via platforms like Airbnb. Conversely, in Casablanca, the Airbnb market is less dynamic, which limits the impact on rental prices. The demand for seasonal rentals in Marrakech comes mainly from local and international clients using these services," it is explained.