Morocco’s Real Estate Sector Braces for 50% Slowdown After Ramadan, Developers Warn

"Following the skyrocketing prices of almost all construction materials in an anarchic manner, well beyond inflation, real estate developers are going through an unprecedented situation that seriously jeopardizes future buyers, the preservation of several hundred thousand jobs and the balance of the entire profession," the FNPI said in a statement, which "expects a slowdown in the sector’s activity of more than 50% after the Ramadan holidays".

Faced with this situation, the federation has initiated a series of actions. On the legal and institutional level, in addition to the meeting with the supervisory minister, it plans to file a documented complaint with the Competition Council. The federation also plans to submit a request for an investigation to the Economic, Social and Environmental Council, as well as to the High Commission for Planning (HCP).

The FNPI also mentioned an "administrative dimension and assistance to the buyer". In this sense, it is requesting a two-year extension of the social housing agreements, given the difficulty of supply and the soaring prices. It also requested the suspension of the application of the tax on unbuilt land, the extension of the building permit deadline by one year and a 50% reduction in registration and land conservation fees for clients and buyers whose purchasing power has been considerably impacted in recent years.

The FNPI has also initiated the process of creating a purchasing center that will allow the pooling of supplies for real estate construction operators under fully optimized and transparent purchasing and payment conditions, both with Moroccan suppliers and direct imports from abroad, in order to protect the profession against collusion and speculators.