Morocco Unveils Recovery Plan to Boost Struggling Real Estate Market

According to the Alliance, the proposed plan runs until the end of 2021 and is based on three main axes, including urgent measures in favor of buyers, in particular by encouraging real estate developers and operators in the sector to voluntarily grant discounts on the selling prices of housing of at least 10%, as well as on social housing and housing for the middle class, until the end of 2021.

The other request is addressed to real estate developers and operators in the sector in order to preserve jobs and use local building materials. In addition, the Alliance’s action plan proposes the launch at the state level of transitional incentive measures until the end of 2021, namely: a 50% reduction in registration and land conservation taxes for first-time buyers, as well as the suspension at the level of the DGI, of the application of the price reference system in view of the expected drop in prices during the chosen period.

The Alliance also recommends exempting VAT on the bank interest of housing loans for buyers of social housing. As for the banks, they must, for their part, commit to promoting the financing of buyers by applying a preferential rate (-50 basis points compared to the rates applied to customers) without application fees, and by adopting more flexibility and speed in the processing of buyers’ financing files, particularly in terms of the financing ratio.

Regarding the revival of activity, the AEI emphasizes the priority of ensuring health safety on construction sites, in particular with the implementation of a "good practice guide" from professionals. It defines the precise operating procedures for the return of construction companies to the sites, after the confinement period, while ensuring the health safety of all workers on the site.

It also recommends streamlining all administrative procedures to revive production, such as the generalization of dematerialized procedures for public administration services, in relation to the investor.

To improve the cash flow of companies, the Alliance of Istiqlal Economists calls for the activation of the implementation of "Damane Oxygène" loans to improve the cash flow of construction and real estate development companies, with a fast-track procedure for the smallest of them that are on the verge of financial asphyxiation and taking into account the specificities of the sector. This plan also takes into account the strengthening of public procurement in the sector and the promotion of national preference, while devoting a significant share of this public procurement to VSEs.