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Rabat – Between February and November 2022, demand for commercial real estate dropped sharply in Morocco, echoing the worldwide economic downturn.
Since the start of the Ukraine war, demand for rent for commercial offices dropped by 21%, while demand for office space for sale slid by 30%, according to research from the real estate company Mubawab Group.
The weakening demand coincides with an equal weakening offer, the company said. “For offices for rent, supply weakened between June and July, certainly marked by the summer break, only to return to timid growth in September,” it explained.
“We are seeing an evolution in the supply of office space, which is now moving towards smaller spaces, generally located close to city centers and therefore better served by transportation,” said Kevin Gormand, CEO and co-founder of Mubawab Group.
He added, “Companies are now opting for new or restructured buildings that offer more opportunities in terms of layout.”
Rising prices
The price for real estate premises for sale or rent increased significantly in 2022. According to the report, the price of one square meter increased by an average of 2% between January and November 2022.
Casablanca holds the record for the most expensive commercial premises for sale in Morocco. Offices for sale in Casablanca Anfa and Casablanca Bourgogne Ouest, reached an average of MAD 22,400 ($2.192), MAD 19,000 ($1.859) per square meter in 2022.
Read also: Morocco’s Real Estate Market Continues to Stagnate, Reflecting Slow Demand
In third place comes Marrakech Gueliz, where office space averages MAD 15,000 ($1.468) per square meter.
Casablanca also holds the record for the most expensive commercial premises for rent in Morocco.
In Casablanca Ain Diab, the price of renting office space averaged MAD 38,000 ($3.719) per square meter a month, followed by Casablanca CFC with MAD 30,000 ($2.936), and Rabat Souissi with MAD 27,000 ($2.643).a
