Morocco’s Real Estate Prices Surge 20% Amid Global Supply Chain Challenges

This increase is attributable to the rise in prices or the shortage of construction materials, says Le360, specifying that most construction sites are facing either an extension of delivery times or a disruption.

Questioned, the vice-president of the National Federation of Real Estate Developers (FNPI), Mustapha Allali, indicated that "the prices of construction materials on the international market have soared for months. There is even a shortage of certain products like glass which has become a rare commodity. The price of steel is also constantly increasing. It has gone from 7.5 dirhams per kilo before the crisis to nearly 12.5 dirhams per kilo currently".

This shortage of certain construction materials combined with the rise in prices will certainly impact the selling price per square meter, he explained, specifying that an increase between 15% and 20% in selling prices compared to 2021 is conceivable, in order to save the sector.

However, despite the international situation, the Moroccan real estate sector is showing resilience. At the end of February, cement sales, the main indicator of the construction sector, strengthened by 5.8%, after a 10.1% drop a year earlier, according to the latest economic note from the Directorate of Studies and Financial Forecasts (DEPF).