Morocco’s Real Estate Market Slumps as Cement Sales Drop 7.2%

This is still a slight improvement in the pace of activity, indicates the DEPF note, recalling that cement sales had fallen by 12.4% between March and July. Compared to the pre-crisis period, sales have fallen by 7.7%.

To explain the situation, the note points to the good performance recorded in the sales of the ready-mixed concrete (+31%), building (+17.6%) and infrastructure (+11%) segments, which have mitigated the declines recorded in the marketing of the "distribution" (−15.7%) and "prefabricated" (−2.7%) segments. At the end of August, the cumulative sales of "ready-mixed concrete" and "infrastructure" evolved respectively by +5.4% and +6.7%, specifies the same source.

According to forecasts by the High Commission for Planning (HCP), after relative stability observed in the 2nd half, the "construction" component will regress again, due to the expected contraction of activity in "civil engineering". This development would be accompanied by a stability of the workforce. HCP indicates that 42% of company managers operating in the sector would encounter difficulties in supplying raw materials. And things are hardly more rosy when it comes to cash flow, which 66% of them consider difficult.