Morocco’s real estate market struggles amid prolonged slowdown in sales and transactions

Moroccan Real Estate Market Faces Steep Decline: Sales Plummet, Experts Sound Alarm

Slowdown Impacts Transactions, Prices Remain Largely Stagnant

Morocco's real estate sector is experiencing a significant slowdown, with official data revealing a dramatic drop in property sales and transactions during the first quarter of 2025. The "Real Estate Asset Price Index," a joint report by the National Land Registry Agency and Bank Al-Maghrib, indicates a 30.3% decrease in total transactions, reflecting a 29.3% decline in residential property sales alone.

While annual real estate prices have remained largely stagnant, with only a minor 0.1% increase in residential property values, prices for urban land dropped by 0.1%, and commercial property values dipped by 0.3%. Transactions across all categories also saw significant declines—residential (14.5%), urban land (16.4%), and commercial properties (18.2%).

Government Subsidy Program Criticized for Limited Impact

Industry professionals are calling for a review of the government's direct housing subsidy program, launched in early 2024. Despite exceeding 177,000 registered requests, only 55,000 applicants have been approved as of July, according to updated government data.

Developers Cite "Deep and Persistent Crisis," Point to Rising Costs and Regulatory Challenges

Anis Benjelloun, vice president of the National Federation of Real Estate Developers (FNPI), described the downturn as a "deep and persistent crisis."

"The latest figures from the Real Estate Asset Index are alarming and should serve as a wake-up call,” Benjelloun stated. “These aren’t just complaints from developers — the data comes from credible public institutions like Bank Al-Maghrib and the land registry.”

He emphasized that key indicators for developers, such as housing units under construction and officially completed, have dropped considerably. Benjelloun attributed the slump partly to rising project costs and soaring prices of construction materials, noting that cement sales, while potentially reflecting some construction activity, are not reliable indicators of actual property sales or housing productivity. Labor costs have also surged by more than 30%, partly due to workers shifting towards government infrastructure projects following a rebound in the agriculture sector.

Expert Highlights Tax Processing Delays and Supply-Demand Imbalance

Real estate expert Amine Mernissi pointed to several overlapping issues exacerbating the slowdown. He cited recent confusion surrounding the processing of tax clearance certificates by notaries through the “Tawtique+” platform, stemming from the implementation of Law No. 14.25, which amended legislation on local taxes.

"Property transactions have suffered significantly in recent months due to delays in processing tax-related documentation for property transfers,” Mernissi stated. Technical disruptions, data breaches, and platform hacks have also discouraged digital transactions, adding further uncertainty.

Call for Government Action: Land Allocation and Regional Housing Agencies

Despite the challenges, Mernissi highlighted that underlying demand remains strong, signaling potential for recovery. He noted the uneven demand for subsidized housing, particularly the 300,000 MAD category in cities like Fez, which leads in applications. He also pointed to difficulties accessing land around major urban areas due to high prices and weak purchasing power among many citizens.

Mernissi urged the state to allocate public land specifically for real estate development and accelerate the implementation of the recently approved law on regional housing and urban development agencies. These agencies, he believes, are essential for mobilizing land and coordinating local development efforts.