Facts and Figures for the Moroccan Real Estate Market

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It is a fact that real estate is considered an ideal investment option for a potential investor, specifically when stock markets plummet. Investors across the world use housing and other residential schemes for generating income by the means of rent and other property appreciation methods. Apart from that, real estate is also favored by potential investors due to its tax benefits as investors can’t have such benefits in other schemes. Over the last few years, Morocco has seen substantial investment with regards to foreign markets. Morocco’s real estate has been highly attractive for potential investors. It is a fact that Morocco’s real estate has been moving along at a smooth pace but is expected to expand substantially in the future. Morocco offers diverse real estate investment opportunities. Within this market, it is expected that with the passage of time the market will expand and more openings will be experienced in the near future. There will be fluctuation in market prices and this will further broaden the investment horizons. If investment is made within the correct passage of time, than significant gains will be received which will be beneficial in the long run. Within Morocco, real estate has been considered as an important area where several investors from international and domestic fronts have been considering investments for long and short term profits. Interlinked with this is a consistent boom in the tourism industry as this has also attracted customers that can make effective use of this strong market. But if the prices don’t seem to be reasonable, this can certainly be a point of massive concern for potential investors who want to buy or rent a property.

In the year 2011, the construction division accomplished 4.2% growth, and in the last eight years, it has been contributing almost 6% of the GDP. By making heavy expenditure on infrastructure, the government sector has provided opportunities to local and foreign firms to further expand their business. For the purposes of further enhancing the capacity and efficiency of the infrastructure, the government invested around Dh180bn (€16m) on the infrastructure from 2003 to 2013. Moreover, in order to create large scale, mixed use projects, foreign firms from the European Union, Turkey, Spain, China and South Korea have been drawn to Morocco in this regard. Due to the global economic recession, construction work has faced a decline in some sectors, however, for the purpose of revitalizing activities in these sectors in the medium term, intense demand regarding construction in public services, housing, energy and industry must continue. Many huge commercial real estate projects have quite successfully accomplished the task of attracting international investment. For the purpose of establishing 11 new cities, efforts to accomplish this were made in 2011, and among these 11 cities, some are situated outside the Casablanca and Rabat region. Furthermore, In order to establish low-income housing and also to support urban regeneration, the government has been planning to form partnerships with the private sector. Besides that, the efforts which were made for encouraging social housing construction and urban planning programs in the short term, to absorb sub-standard housing, will facilitate real estate sector activity to thrive.

As properties in Morocco have a stable price, it would be wise to make an investment now and grab an opportunity. However, before the property prices slow down, it is still believed that property prices in Morocco will increase. There are several resources available on the internet that can give further insight and details regarding the real estate market. You can find further insight and analysis regarding flats and other properties from the Istathmir service, which has ascertained through various sources that purchasing a two bedroom apartment within Morocco would cost around USD 180,000 and a three bedroom apartment would cost USD 240,000.

Istathmir.com will provide further insights and details regarding various property options available. It is expected that rents within Morocco would not be relatively high and these would remain the same for the next few years. However, a potential investor has to pay a substantial amount with regards to capital gains or whenever he has to sell off a property after a few years from the date of purchase.

Within the Morocco real estate market, luxury apartments have experienced a significant decline in prices specifically due to slow movement in the international economy. There has also been low investment from other potential investors from North America, Europe and Australia etc. While the operational profit margins have decreased in 2014, the lower prices in some sectors have certainly pushed up demand in a buyers’ market. From 2010-2014, apartment sales within some cities in Morocco have risen by almost 18% and sales of commercial property have increased by 14.9%. One bedroom home sales have dropped by 10%. This does reflect the fact that houses with 2 or 3 bedrooms have gained larger significance and this is one of the most important drivers of construction and real estate activity in the last few years. Within Casablanca and Rabat, housing prices have increased considerably and the principal residential markets have risen by 0.2% and 0.6% in 2014. Within Casablanca and Morocco, price stagnation has increased apartment sales by 34.4%. Not many other cities have seen any increase in housing prices in Morocco, in fact Rabat has been the only city to experience a growth in apartment prices and sales in 2014.

It can be concluded that Morocco’s real estate market does follow the core fundamentals of investment and does remain fairly strong. Another positive trait that can bolster the potential of this market are the short, medium and long term prospects that are affiliated with relatively strong demand for housing at various spectrums. This can also help in mitigating issues caused by consistent affordable housing deficits that are prevalent in developed urban areas.

Istathmir

Istathmir

Financial News Channel at Istathmir
Istathmir.com has been established by specialists in equity and derivative trading and by asset managers. With years of individual experience in various markets around the globe, they have decided to found the financial news and investment advice portal.
Istathmir

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Istathmir.com has been established by specialists in equity and derivative trading and by asset managers. With years of individual experience in various markets around the globe, they have decided to found the financial news and investment advice portal.