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Rabat – Morocco’s real estate market shrunk by 6.3% at the end of 2021 compared to 2020, in the Global Real Estate Index, an index tracking real estate markets performance.
Morocco fell to last place in the so-called Global Real Estate Index carried out by real-estate consultants Knightfrank, dropping to 56th place in 2021 compared to 17th place four years previously.
The data suggest that Morocco’s real estate market is falling behind the 20.3% average global growth rate, Knightfrank said in its ranking.
The report is in line with data from Morocco’s central bank, Bank Al-Maghrib (BAM) which revealed that the country’s real estate price index continued to slide, with a 6% year-to-year drop in the fourth quarter of 2021.
Morocco’s real estate value overall decline includes land, office properties, and residential properties, BAM data suggests.
Real estate transactions also plummeted over the same period, falling by a 35.1% year-on-year rate in the fourth quarter of 2021, compared to the same time a year ago
Despite a seemingly modest quarterly recovery, real estate transactions remain 14% below pre-pandemic levels, the central bank reports.
The sharp decline in transactions is offset primarily by the 23% drop in real estate transactions within the residential assets subcategory — residential villas. The drop is the highest across the board, according to the data.
Professional real estate assets have recovered by a moderate 6.5% year-on-year, driven by a 7% increase in the value of business properties and3.8% year-on-year growth in office property prices BAM data also suggests.
Read Also: Annual Core Inflation Rate in Morocco Reached 1.7% in 2021
