Morocco’s Real Estate Sector Seeks Reforms and Social Housing Revival from New Government

For professionals in the real estate and construction sector, a sector hard hit by the health crisis, the next government will have to work to implement the essential reforms to revive the sector. For Anis Benjelloun, vice-president of the National Federation of Real Estate Developers (FNPI), the top priority remains the relaunch, in the same form or in another, of the 250,000 dirham social housing program, launched in 2010 by the government and which ended in December 2020.

"No alternative has emerged since the end of the program in December 2020, while demand will become even more pressing in the coming years, given the migration of rural populations to coastal cities, with the very serious risk of resorting to illegal housing and slums," he explains to the Le360 website.

To read: Morocco’s Real Estate Sector Struggles to Rebound Amid Housing Deficit

The FNPI recalls that the reforms necessary for the revival of the real estate sector concern the profound revision of the legal framework governing the sector, the easing of administrative procedures and the introduction of tax exemptions for buyers. "We are asking that the next government organize either a round table or real estate conferences, bringing together all administrative stakeholders (Ministry of Housing, Interior, Finance, the General Directorate of Taxes, etc.) to decide on a new policy to follow in terms of Housing," suggests Anis Benjelloun.

To read: Morocco’s Real Estate Market Surges: Transactions Soar 220% in Q2 2021

Regarding the choice of the Minister of Housing and Urban Planning in the future government of Aziz Akhannouch, professionals "wish the appointment of a manager who has a perfect knowledge of the sector" and hope that he will be up to the expectations.

The real estate and construction sector contributes 6.8% to GDP, for more than one million cumulative jobs, 27% of VAT revenue, and 30% of the total outstanding bank loans.