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Rabat – With a timid 0.4% year-on-year growth at the end of June 2022, Morocco’s real estate market is yet to recover from over five years of persistent slow growth.
The sluggish growth in the real estate market is especially visible in the significant drop in real estate-related transactions.
While real estate-related transitions noted a modest 4.6% recovery from the previous quarter, the overall number of transactions remains 22.5% below last year’s, according to a newly published report from Morocco’s central bank, Bank Al-Maghrib (BAM).
In the course of the first six months of 2022, the number of real estate-related transactions took a nosedive, bleeding almost 38% of its value compared to the previous year, BAM data indicates.
The drop in real estate-related transactions reflects slowing demand for real estate in the country. The depressed demand can be largely attributed to the economic hardships the country is facing while trying to recover in the post-pandemic era.
While the growth in the price of residential real estate is stagnating, business real estate assets are showing moderate signs of recovery, growing at a year-on-year average of 7.2%.
Detailing the growth by the type of real estate, the BAM report shows that the growth in the value of offices is underpinning the recovery of business-related real estate. The value of offices rose by an annual average of a little more than 12% at the end of June.
Looking at the growth of the real estate market across Morocco’s major cities, the BAM data shows that it is below 1% for all cities including Capital Rabat, Tangier, and Casablanca.
The growth rate is even trending slightly downward for cities like Marrakech and Agadir.
