Reports uncover widespread real estate speculation involving Moroccan local officials

Local and regional authorities across several Moroccan provinces have launched investigations into widespread real estate speculation allegedly involving elected officials, municipal employees, and their political allies.

According to Hespress AR sources familiar with the matter, internal affairs departments submitted reports to the central government, triggering official inquiries in the Casablanca-Settat, Rabat-Salé-Kénitra, and Tangier-Tetouan-Al Hoceima regions.

The reports allege that local council members and staff secured large plots of land, some exceeding 120 hectares, in major residential developments within their jurisdictions.

These plots were reportedly allocated to political allies, relatives, and acquaintances, and later resold through unofficial transfers, or “désistement,” for substantial profits.

The transactions were allegedly facilitated by intermediaries and concealed from tax authorities. Final sales were reportedly formalized before notaries, giving them a veneer of legality despite circumventing state tax obligations.

One report highlighted speculative land deals in Daroua, a town in the Berrechid province near Casablanca. Regional authorities are expected to dispatch an administrative inspection team to investigate possible misconduct linked to land allocations near the “Al Massira” development project.

Authorities have already begun reviewing the tax records of known speculators, often referred to in the market as “chnaqa.” These individuals are concentrated in areas surrounding Casablanca and are suspected of manipulating land transactions and evading income tax on capital gains by using pre-reservation bonds instead of formal sales contracts.

Tax inspectors, working in coordination with urban planning departments and municipal agencies, uncovered thousands of unbuilt reserved plots and discrepancies in developers’ tax filings. Many of these land deals were conducted off the books, avoiding scrutiny by financial authorities.

The internal reports also cite cases where developers and speculators used shell companies, particularly civil real estate corporations (SCI), to acquire land or transfer ownership on behalf of third parties, particularly in newly zoned areas, all while collecting illicit commissions.

Sources indicated that some elected officials, including municipal presidents, secured dozens of plots through informal pre-reservations that required upfront payments of roughly 3% of the total land value.

These plots were later sold at a profit, often exceeding the gains of the original developers, without being subjected to taxation.

Authorities are expected to continue investigating these land speculation networks, which have raised concerns about transparency, corruption, and the erosion of public trust in local governance.