Morocco Moves to Regulate Airbnb Rentals as Government Targets 20% Rent Reduction Morocco Moves to Regulate Airbnb Rentals as Government Targets 20% Rent Reduction

Mohammedia – The Moroccan government is moving to curb rising rental prices as short-term rentals continue to expand across major cities, with officials pointing directly to platforms such as Airbnb as one of the factors tightening the housing market.

Speaking yesterday before the House of Representatives, Secretary of State for Housing Adib Benbrahim acknowledged a clear increase in property prices, both for purchases and rentals.

He said the surge is largely driven by strong demand facing limited supply, particularly in large urban centers where employment opportunities, healthcare services, and infrastructure continue to attract residents.

This pressure is compounded by the scarcity of urban land, which has pushed acquisition costs higher and, in turn, driven up rents.

Benbrahim noted that speculative activity has played a significant role in aggravating the situation.

According to him, an increasing number of investors are acquiring residential properties for commercial rental purposes or resale, a trend that directly contributes to higher prices and places an additional financial burden on households.

He also pointed to the rapid growth of short-term rentals, especially through digital platforms such as Airbnb.

This segment has expanded to the point where banks are now more inclined to finance projects designed specifically for short-term rental use, he said.

Benbrahim further warned that the shift is creating imbalances in the housing market, as residential units are increasingly diverted away from long-term housing needs.

The trend conflicts with existing urban planning frameworks, which designate specific zones for tourist activities, he stressed.

Allowing residential properties in all areas to be converted into short-term accommodations, he said, makes access to housing more difficult for local residents.

To address this, the government is preparing a regulatory decree to better control buildings intended for short-term rental use and limit the unchecked expansion of this practice.

Alongside regulatory measures, Benbrahim announced that an ongoing study aims to reduce rental costs by around 20% compared to current market prices. The first results of this study are expected in March.

The proposed model would offer housing at below-market rents, while allowing tenants to convert part of their rent into payments deductible from the future purchase price of the property.

The initiative primarily targets the middle class and is designed to set rental levels approximately 20% below the current average.

Beneficiaries would be able to accumulate savings through their rent over a period of five to six years, to eventually acquire their homes.

The announcement comes against a backdrop of sustained increases in property prices over the past decade.

Data from real estate market reports show that average prices per square meter rose by around 60% in Casablanca between 2013 and 2023, while Rabat recorded an increase of more than 66% over the same period, underscoring the scale of affordability pressures facing urban residents.