Rabat – As Morocco emerged from the COVID-19 hiatus, the country’s real estate market showed signs of slow recovery in the fourth quarter of 2021, with real estate assets gaining 0.2% value compared to the previous quarter of the same year.
Despite the modest recovery, Morocco’s real estate price index has continued to slide down, with a 6% year-on-year drop at the end of 2021, according to Morocco’s central bank, Bank Al-Maghrib (BAM).
The drop in real estate asset value extends to categories including residential properties, urban land, and professional real estate assets, BAM data suggested.
Real estate-related transactions’ performance echoes that of real estate assets. Transactions are up by 35.1% in the fourth quarter of 2021 compared to the previous quarter. However, real estate-related transactions remain 14% under the 2020 transactions volume, the central bank detailed.
The trend is offset primarily by the 23% drop in real estate related-transactions within the residential assets subcategory — residential villas. The drop is the highest across the board, according to the data.
As people return to working from offices, professional real estate assets have recorded a moderate 6.5% year-to-year recovery in value, supported by a 7% rise in the value of business premises and a less impressive 3.8% year-on-year recovery in office assets value, according to BAM.
In Morocco’s biggest city, Casablanca, real estate prices rose by 0.6% between Q3 2021, and Q4 2021, supported by a 0.8% increase in residential property value, with sales jumping by 65% in the same period, BAM reported.
Morocco’s capital Rabat had a better quarterly run, with real estate asset value recovering by 3.9% and a 41.9% increase in the transactions volume, according to the report.
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