Real Estate in Morocco: Towards a 20% Decrease in Rental Prices?

The Secretary of State for Housing, Adib Benbrahim, announced that 62 cities and urban centers are now officially declared slum-free. This assessment, resulting from a project launched two decades ago, reflects a change in the executive’s approach, informs L’Economiste. The current strategy favors sustainable resettlement rather than just technical rehousing, in order to better integrate the populations into the economic and social fabric.

As part of the 2024-2028 five-year plan, the authorities have updated the data of 120,000 households across the country. This update aims to adapt the interventions to the reality of rapid urban transformations. The State also relies on a partnership with private developers to produce housing for less than 300,000 dirhams, with public subsidies to reduce the financial contribution of the beneficiaries.

The government’s schedule plans to complete the program between the end of 2027 and the beginning of 2028. To ensure the sustainability of these results, monitoring mechanisms will accompany the operations in order to prevent any new proliferation of precarious habitats. The ultimate goal is to transform the reduction of slums into a real lever for long-term urban integration.

Beyond substandard housing, the real estate market is under strong pressure marked by a continuous rise in prices. This phenomenon is explained by an imbalance between high demand and insufficient supply in employment areas. Real estate speculation, massive rental investments, and the development of seasonal rental platforms are exacerbating this tension by reducing the traditional residential stock.

To address this crisis, the Ministry of Housing is studying a new residential rental formula. This system would offer rents about 20% lower than market prices, with an option to convert the payments into down payments for the future acquisition of the housing. The first details of this initiative will be presented next March.