Morocco Unveils Affordable Housing Plan for Urban Renters

The Ministry of National Territorial Planning, Urban Planning, Housing and City Policy recently launched a study on the Moroccan rental market with a view to implementing a program dedicated to intermediate rental housing. A pilot phase will be developed in large cities and those hosting large-scale projects, namely Agadir, Casablanca, Mohammedia, Dakhla, Fez, Laayoune, Marrakech, Tangier, Rabat and Salé.

The objective of this project is to boost the Moroccan rental market by diversifying the housing supply. "The current demographic pressure presenting an increasingly high urbanization rate (reaching 62.8% according to the 2024 RGPH compared to 60.3% in 2014) requires public authorities to diversify the housing supply further, in geographical or social segments where access to ownership is not optimal," explains the ministry.

According to the department headed by Fatima Ezzahra El Mansouri, "this program would respond to the increasing pressure on Moroccan real estate markets and the resulting difficulties in accessing housing." The initiative also aims to develop intermediate rental housing (LLI) which "positions itself as a housing offer with more affordable rents than those of the free private market" and represents a viable solution to the challenges of access to housing for the middle class.

"Intermediate rental housing (LLI) facilitates access to housing for the middle class and young working people in high-demand areas," emphasizes the ministry. Several options are being considered, such as acquisition or self-construction for rental at controlled prices, renting for subletting of housing at controlled prices, through a dedicated entity, with coverage of rental risk, and renovation of existing rental housing with the support of an entity, then subletting managed by said entity.

In this context, the State could set up a savings system linked to rent, part of which would be dedicated to building a down payment. "This down payment could then be released to finance a home ownership project, thus promoting a dynamic residential path," specifies the ministry. The first phase of the project will consist of analyzing current practices in the Moroccan rental market to identify the target, as well as the levers and mechanisms to be deployed to encourage the various parties concerned (landlords, State and tenants) to adhere to the project.