Morocco’s Real Estate Sector Slumps as Cement Sales Plummet 9.4%

In its latest economic note, the Directorate of Studies and Financial Forecasts (DEPF) notes that cement sales fell by 9.4% in November, a decline of 9.2% since the beginning of the year, compared to an increase of 15.6% at the end of November 2021. This trend is mainly explained by a performance lower than expected sales in the distribution (-13.8%), construction (-9.7%) and prefabrication (-6.3%) segments. As a result, the sector has no longer played a key role in supporting Morocco’s economic growth this year as predicted by the 2022 Finance Act.

Last year, the real estate market in Morocco experienced exceptional growth. In total, 459,766 real estate transactions were recorded, an increase of 51% compared to 2020 and 29% compared to 2019. The postponement of sales from 2020 (year of confinement) to 2021, the extension of the exemption and the reduction of registration fees for the acquisition of a property, as well as the attractiveness of mortgage rates, among other things, made it possible to achieve this growth.