Morocco’s Real Estate Sector Suffers $4 Billion Loss Amid Pandemic

The latest data indicates that the losses recorded in a few months in the real estate sector amount to 40 billion dirhams, reports Maroc Hebdo. Faced with this situation, the Moroccan government has taken some measures recorded in the 2020-2021 finance bill to revive the sector. These include the continuation of the 50% reduction in registration fees for real estate assets whose value does not exceed 4 million dirhams instead of 2.5 million dirhams until June 30, 2021 and the extension of the benefit of the exemption in favor of Real Estate Investment Trusts (REITs) for residential rentals.

In the eyes of real estate developers, these measures are very positive. Insofar as the increase in the taxable base to 4 million dirhams will make it possible to absorb part of the stock, particularly in cities like Casablanca and Rabat where the value of real estate is higher. Some developers believe that the measure relating to REITs is a relevant solution that will allow them to get through the current situation.

For their part, experts call for this measure to be followed by a specific legal framework, as the residential lease in its current version does not really protect landlords. Many of them are asking for support to balance the relationship between landlords and tenants. They also wish that insurance policies be put in place to improve real estate attractiveness.

Discussing the proposal for direct state aid to beneficiaries of social housing, Karim Amor, vice-president of the National Federation of Real Estate Developers, deplores the lack of solutions for social housing and middle-class housing in the new finance bill. "We understood that the Ministry of Finance wanted solutions that no longer give tax exemptions to real estate developers. So we have proposed alternative solutions," he said.