Morocco’s Real Estate Sector Faces Slow Recovery After COVID-19, Expert Says

Regarding the diagnosis, the real estate expert in Morocco affirms that the sector, severely affected by the Covid-19 crisis, is in the midst of a resumption of activities, if not "resuscitation", after the lockdown. A recovery that will be "long and difficult", but the sector will eventually recover, he reassures, specifying that with the measures adopted by the amended finance law for the benefit of the sector, hope remains.

To revive the sector, Mernissi believes that a "real recovery policy targeting first-time buyers" is necessary. In other words, to put in place an incentive tax framework and attractive financing for these young people aged 25 to 35, who are just starting their careers and have significant acquisition potential. The recovery also requires an "essential revitalization of the rental market," adds the expert.

Regarding the measures adopted by the amended finance law, Mernissi welcomes the 50% reduction in registration fees on properties valued at a maximum of 2.5 million dirhams and the total elimination of these same fees for social housing at 250,000 DH and low-value housing (VIT) at 140,000 DH.

He did not fail to appreciate the suspension of the real estate price reference decided by the DGI since the beginning of the state of health emergency, stressing that from now on, "it is the market that will set the price level according to supply and demand".