Morocco’s Real Estate Market Sees Slow Growth, Islamic Financing Surges

This increase is due to a relatively weak growth in housing loans, which rose by 2.5% to reach 241.3 billion DH, offset by a 7.4% drop in loans to real estate developers. Participatory (Halal) financing, on the other hand, showed a strong increase of 17.1%, totaling 20 billion DH, or 8.3% of total housing loans.

Moreover, the total outstanding bank credit amounted to 1,049 billion DH at the end of May, up 6.5% or 64.2 billion compared to the same period in 2022, according to the latest monetary statistics from the central bank. This increase was mainly driven by loans granted to other financial institutions, which saw a surge of 23% or 30.6 billion DH, as well as by working capital loans and equipment loans.

The non-performing loans held by banks, for their part, increased at almost the same pace as the total outstanding loans, with an increase of 6.3% or 5.5 billion DH, reaching 93 billion, with a non-performing loan rate of 8.8%.