فاس نيوز ميديا جريدة الكترونية جهوية تعنى بشؤون و أخبار جهة فاس مكناس – متجددة على مدار الساعة
The real estate sector is considered one of the key drivers of the Moroccan economy, contributing directly to the Gross Domestic Product (GDP) and providing thousands of jobs. However, growing challenges are increasingly casting a shadow over this vital sector, amid slowing demand, rising construction material costs, and tighter bank financing conditions.
According to data from the Ministry of National Territory Planning, Housing, and Urban Policy, the sector employs over 1.5 million people, both directly and indirectly, and contributes nearly 6% to the national GDP. Real estate also represents one of the most significant areas of private investment in the country and is traditionally considered a safe savings vehicle for Moroccan households.
Declining Demand and Rising Prices
Despite its vital role, the real estate sector has experienced a noticeable slowdown in recent years, especially following the COVID-19 pandemic and subsequent global economic shifts. A 2024 report by the World Bank describes the Moroccan real estate market as experiencing a state of “relative stagnation,” largely attributed to the weakened purchasing power of households, increased financing costs, and soaring construction material prices.
In this context, Abdelghani Salmi, an expert in urban economics, told Fes News that “the middle class is finding it increasingly difficult to access housing due to rising prices on one hand, and a lack of sufficient supply of decent and moderately priced housing on the other.”
Structural Challenges: Financing, Supply, and Urban Planning
Among the main challenges facing the sector are those related to real estate financing. According to a report by Bank Al-Maghrib, real estate loans declined by 4.2% in 2024 compared to the previous year, due to tighter monetary policy and higher interest rates.
On the other hand, real estate developers complain about burdensome administrative procedures, fluctuating land prices, and a shortage of land ready for construction within urban areas—all of which hinder supply dynamics and slow down the implementation of housing projects.
Revival and Incentive Efforts
The Moroccan government has launched new incentive programs to revive the sector, the most notable being the direct housing support program, which came into effect in early 2024. It aims to facilitate access to homeownership for low-income families by providing direct financial aid of up to 100,000 dirhams per household.
Sector stakeholders welcomed the initiative and considered it an important step, but “not sufficient on its own,” according to Souad Hallimi, a member of the National Federation of Real Estate Developers. She emphasized the need to “revise urban planning policies and stimulate real estate investment in medium and small cities, not just in major urban centers.”
Toward a New Vision for Cities and Housing
Urban development experts agree that overcoming the real estate crisis in Morocco requires adopting a comprehensive vision that balances supply and demand, provides ready-to-build land, and ensures equitable access to housing, while also focusing on quality urban planning and supporting infrastructure.
In a recent report, the Organisation for Economic Co-operation and Development (OECD) called for “structural reforms to stimulate investment in social and mid-range housing, and the adoption of sustainable urban policies that take into account climate and demographic changes.”
Despite successive crises, the real estate sector remains a true pillar of the national economy. However, sustaining this role depends on the ability of stakeholders and institutions to overcome structural challenges and adopt innovative approaches that ensure territorial equity and social justice in the field of housing.
Source: Fes News Media
