Homeownership slips out of reach for Morocco's middle class

Owning a home is becoming increasingly difficult for Morocco’s middle-class families as rising property prices, expensive mortgages, and a shortage of affordable housing continue to push homeownership beyond their reach.

Families in major cities such as Rabat and Casablanca are among the hardest hit, facing higher living costs, elevated borrowing rates, and a housing market where demand continues to outpace supply.

According to Morocco’s National Agency for Land Registry, Cadastre and Cartography (ANCFCC), the real estate market remains under pressure. Although property transactions fell by more than 40% during the first quarter of 2026, housing prices continued to rise, reaching record levels in several cities.

Government support, limited impact

In January 2024, Morocco introduced a direct housing assistance program to support homebuyers. The initiative offers MAD 100,000 for homes priced at up to MAD 300,000 and MAD 70,000 for homes costing up to MAD 700,000, replacing the previous subsidy scheme for economic housing.

While the program has eased the financial burden for some buyers, industry experts say it has not resolved the structural challenges affecting the housing market.

Real estate expert Amine Mernissi said soaring land prices remain one of the main drivers of Morocco’s housing affordability crisis.

“The government’s support program has helped stimulate demand, but the supply of affordable housing remains insufficient, particularly in large cities,” Mernissi said.

He added that many developers are reluctant to build lower-cost housing because profit margins are significantly smaller than those generated by high-end residential projects.

“As a result, finding a suitable home for less than MAD 300,000 in cities such as Casablanca or Rabat has become nearly impossible,” he said. “Properties priced between MAD 300,000 and MAD 700,000 are more common in other Moroccan cities, although availability varies depending on location.”

High mortgage costs add pressure

For many households, purchasing a home requires taking out a mortgage, adding another financial hurdle.

Mortgage rates offered by Moroccan banks generally range between 4.1% and 5.2%, excluding taxes, although some low-income households may qualify for subsidized or interest-free financing under social assistance programs.

Mernissi said second-hand properties have become one of the few practical alternatives for middle-class families, particularly when located in established neighborhoods with schools, public transportation, and essential services.

Prices remain elevated

Housing prices continue to climb in Morocco’s largest urban centers.

Data from real estate platforms Masaakin and Avito show apartment prices in Rabat typically range between MAD 8,500 and MAD 25,000 per square meter, while prices in Casablanca range from MAD 8,000 to MAD 28,000 per square meter. In Tangier, apartments generally sell for between MAD 8,000 and MAD 22,000 per square meter.

With affordable homes becoming increasingly scarce in central neighborhoods, many families are relocating to suburban areas or postponing home purchases altogether.

Supply struggles to meet demand

Demand for housing has continued to rise, particularly in Morocco’s largest cities, placing additional pressure on the market.

A source within the National Federation of Real Estate Developers (FNIP) said the sector is facing a prolonged crisis driven by economic and administrative constraints that continue to widen the gap between supply and demand.

The source cited lengthy approval procedures involving urban agencies, local authorities, and licensing bodies as a major obstacle delaying residential projects.

At the same time, developers continue to face rising land prices, higher labor costs, and increased prices for construction materials such as cement, steel, and aluminum. Administrative costs have also risen, pushing housing prices even higher while weakening purchasing power limits demand.

The source called for greater coordination among public authorities, developers, and financial institutions to improve housing affordability and accelerate project delivery.

A widening affordability gap

Despite government support measures, the gap between household incomes and housing costs continues to widen.

As property prices, construction costs, and mortgage rates remain elevated, many middle-class Moroccans are delaying plans to buy a home, relocating farther from city centers, or turning to the second-hand market in search of more affordable options.

For many households, homeownership has become not only more expensive, but increasingly difficult to achieve.