Morocco’s Real Estate Market Stagnates for Fourth Consecutive Year

Another year without the real estate sector taking off. The situation is becoming unsustainable for operators. "This is the 4th successive year of stagnation that the real estate market in Morocco is experiencing, whether in the new or second-hand segment," laments an operator. Yet diversified offers abound, construction sites are open in all cities of the Kingdom (even if the trend is down compared to the glorious years of the 2008-2014 sector), according to La Vieéco.

However, the supply does not meet the demand, especially from the middle class. Unlike the low-income or low-income population who can afford economic and social housing, and the wealthy class who have significant purchasing power, the middle class severely lacks financial means.

"Even if they can make financial efforts, they feel that the supply is not adapted to their needs and requirements," says a real estate agent. As a result, "the vacancy rate of a property is getting longer and longer. While it was 3 to 4 months a few years ago, it can currently reach up to 2 years," he laments.

The drop in prices has not been a successful therapy either. What has actually worsened the situation is the price reference. Its update still represents a gap between the set prices and the reality of the market. According to a practicing notary in Casablanca, "a total sales blockage is noticed in a neighborhood. A drop in the reference prices would have been beneficial. But, to our great surprise, the average price was raised to 13,000 DH/m2 instead of 11,000 DH/m2 in the previous version."