Rabat – Bank Al-Maghrib, Morocco’s central bank, has reported that real estate prices in Morocco maintain a downward trajectory in the third quarter of 2021, mirroring the decrease in the number of real estate-related transitions.
The national Real Estate Price Index (PEPI) continues to slide in the Q3 of 2021, shrinking by – 5.5% from the Q3 of 2020. However, the index shows a modest + 0.2% improvement from the Q2 of 2021, according to the report.
The modest recovery of the index is supported by a slight + 1.5% increase in urban land prices despite recording a land-sliding loss of – 41% in the number of transactions.
COVID-related economic hardships have especially negatively impacted the PEPI. As businesses struggle to remain open, office prices are plummeting by a -13.8% decrease in the Q3 of 2021, from the same period of last year.
While business real estate transactions are gaining momentum with a + 10.6% increase from Q2, business real estate assets show no sign of recovery in Q3 of 2021, recording a -0.9% decrease, resisting the overall trend of real estate assets in Morocco.
Regarding residential properties, residential assets continue on a downward trajectory at a much slower rate in Q3 of 2021, recording a – 0.5% decrease primarily supported by the -2.1% decrease in villa prices, while house assets neutralized at 0.0%.
The number of residential transactions plummeted in Q3 of 2021 by -45.1% from the last quarter.
The report, titled “Overall Trend of the Real Estate Market in the 3rd Quarter of 2021,” indicates that the PEPI index fell in all major cities in Morocco except for Marrakech.
According to the report, real estate assets in Marrakech are showing signs of recovery with a 3.3% increase from last quarter.
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