Morocco’s real estate sector recorded a marked decline in transactions and sales during the first quarter of 2025, with official data showing a 30.3 percent drop in overall transactions and a 29.3 percent decrease in residential property sales, according to the latest Real Estate Asset Price Index published jointly by Bank Al-Maghrib and the National Land Registry Agency.
While property prices remained largely stagnant year-on-year, with residential prices rising marginally by 0.1 percent and urban land and commercial property declining by 0.1 and 0.3 percent respectively, market activity suffered a broader contraction.
Transactions across all categories fell 15.2 percent compared to the same quarter in 2024.
Anis Benjelloun, vice president of the National Federation of Real Estate Developers , described the figures as a “clear alarm bell” signaling a deepening slump.
He pointed to a significant drop in housing unit permits and a lack of responsiveness in consumer demand.
Despite the government’s direct housing subsidy program launched in early 2024, only 55,000 beneficiaries have been approved out of 177,000 applicants to date.
Benjelloun cited rising construction costs, soaring material prices, and increased labor expenses, estimated at over 30 percent, as key constraints.
He also cautioned against interpreting cement sales or mortgage volumes as indicators of sectoral recovery.
Real estate expert Amine Mernissi attributed the downturn to delays in processing fiscal clearance certificates (quitus fiscal) on the digital platform Tawthiq+, linked to recent amendments to local tax law.
Technical issues, data breaches, and disruptions in online registries have further discouraged buyers.
Mernissi noted that returning Moroccans from abroad and uneven housing demand, particularly for low-income units in cities like Fes, add complexity to the landscape.
He called for the rapid implementation of the newly approved regional urban planning and housing agencies law to streamline land availability and improve coordination across stakeholders.
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