Real Estate Market in Morocco Faces Sharp Decline Amid Health Crisis

This study focused on the sector’s activities in the first quarter of 2020. The situation at the microeconomic level is worrying. The study shows a clear drop in absolute values from the end of February. Whether it’s supply or demand, apartments or villas, old or new. "Like a micromarket, the behavior of supply and demand on is closely linked to the economic situation," says Kevin Gormand, co-founder and CEO of the platform.

The supply of apartments is down 23% for new and 28% for old. The supply of villas is down 52% for new and 29% for old. As for the real estate website, the seasonal effect is ruled out, since the supply usually rises at this time of year. Yet the supply in the first half of 2019 recorded a 86% increase for new housing and 30% for old housing. Demand, on the other hand, was down just 18% for apartments and 10% for villas.

The price of new apartments is down 7% in the first quarter of 2020 compared to -10% over the same period in the previous year. As for old prices, they continue to depreciate with -4% recorded in the first quarter of 2020 against -17% over the same period in 2019. Conversely, the prices of new and old villas are on the rise. The prices of new villas recorded an increase of 5% in the first quarter of 2020 compared to +2% over the same period the previous year. As for the prices of old villas, they show an increase of +1%.