Morocco’s Real Estate Prices Edge Up 0.6% in Q4 2020, Despite Annual Decline

The increase in the IPAI in Q4 2020 is the result of a 1.4% increase in residential property prices and a 0.5% and 1% decline in land and commercial property prices respectively. The number of transactions, on the other hand, increased by 39.2%. Thus, on an annual basis, the IPAI rose by 0.6% compared to Q4 2019.

However, in 2020, the real estate asset price index fell by 0.9% and the number of transactions fell by 15.2%. The contraction in sales has affected all asset categories with some declines. By type of asset, on a quarterly basis, residential prices rose by 1.4% and transactions by 39.7%. On an annual basis, residential prices rose by 0.8% and transactions reached 22.3%.

Regarding land prices, on a quarterly basis, they fell by 0.5%, but transactions increased by 47.2% from one quarter to the next. On an annual basis, land prices rose by 0.5% and the number of transactions increased by 47.3%. Regarding commercial property prices, on a quarterly basis, they fell by 1%, as well as on an annual basis.

Regarding the real estate price index by city, in Rabat, in 2020, prices soared by 0.7% while transactions fell by 17.4%. In Casablanca, the decline is 0.6% for prices and transactions fell by 10%. In Marrakech, prices fell by 1.8% and sales fell by 10.1%. For Tangier, over the whole year, prices fell by 2.3% and the number of sales fell by 25.2%.