Morocco’s Real Estate Prices Drop 5.4% as Transactions Surge in Q2 2021

The latest edition of the Real Estate Asset Price Index (IPAI) published by the Central Bank and the National Agency for Land Conservation, Cadastre and Cartography (ANCFCC) outlines the trend of real estate transactions in the country. Thus, in the second quarter of 2021, the real estate asset price index recorded a quarterly decline of 5.4% compared to the same quarter of 2020.

Residential prices fell by 5.6%, apartments by 6.4%, houses by 2.5%, while villas saw their prices drop by 5.1%. For land, the price index fell by 5% and by 7.3% for the prices of commercial properties. However, between the first and second quarters of 2021, the number of transactions jumped by 18.8%, with an increase of 22% for residential properties and 29.2% for land.

As for the residential sector, sales of apartments, houses and villas increased by 22.7%, 13.3% and 15% respectively. On the commercial property side, transactions fell by 20.7% after a 20.5% drop in commercial property sales and 22.2% in office sales. The breakdown by city shows the largest declines in Fez, Tangier and El Jadida. For transactions, Marrakech is the most dynamic city with a 28.9% increase in real estate sales, attributable to a 27.9% increase in residential sales and 49.1% for land.