Morocco’s Real Estate Market Rebounds, But Challenges Persist

According to data from Mubawab, a specialized real estate website in Morocco, the real estate market has been marked by an increase in transactions since the beginning of 2024 compared to the previous year, particularly in the land, apartment and commercial segments. The volume of transactions has even exceeded the levels of 2019, the reference year.

Despite this encouraging trend that reflects the recovery of the sector, difficulties persist, particularly with regard to the supply which varies from one segment or city to another. Marrakech remains an attractive market for real estate investment due to its lower prices compared to Casablanca. The same is true for Tangier, where transactions are on the rise. Even if demand is low, Casablanca remains the most dynamic city in terms of transactions. "The metropolis accounts for 20% of the total transaction volume, compared to 10% for Marrakech, 7% for Tangier and 2% for Rabat," informs the specialized website.

By segment, disparities are observed. "The villa continues to sell well, as these are budgets less affected by inflation. On the other hand, the high-end residential segment has seen a slight decline, due to a mismatch between supply and demand. Many potential buyers had to adjust their budgets downwards. Thus, the most affected segment is high-end residential, especially in Casablanca. In contrast to Tangier where the market is supported by Moroccans residing abroad (MREs) who continue to buy, as well as local clients. Similarly, in Marrakech, strong demand comes not only from MREs and expatriates, but also from local buyers," it is detailed.

In terms of demand, social housing is not in vogue due to the costs related to land and apartment prices. "That’s why developers are reluctant to develop social housing, especially in Casablanca and major cities. However, some neighborhoods or cities continue to have a social housing supply that still significantly meets demand, as the land issues there are different," it is pointed out, specifying that the middle range has taken the largest share of the real estate market, thanks in particular to the housing assistance program launched by the government last January.

Apartments dominate the market with 75% of transactions. Demand is strong for properties worth between 600,000 and 700,000 dirhams. In Casablanca and Tangier, the budget can range from 1.5 to 2.5 million dirhams. Offices, on the other hand, are currently recording a decline in attractiveness, the specialized website also notes. Industry professionals, for their part, insist on the adequacy of supply and demand. A major challenge that should be met before the 2025 CAN and the 2030 World Cup.