The Moroccan government’s housing subsidy, approved under the 2023 Finance Law, might not be implemented until next year. The delay in implementation occurred when negotiations between the government and real estate developers broke down over the eligibility criteria and price variations in different cities, according to sources who spoke to Hespress AR.
The government has decided to shift from its earlier strategy of providing tax exemptions to the real estate sector, which was worth approximately 6 billion dirhams per year.
Instead, it has opted for direct financial assistance with specific conditions. The delay in reaching an agreement with the Ministry was caused by the government’s methodology of announcing the housing involved with the subsidy rather than first agreeing on a warranty book, according to the developers.
The government has identified two types of housing that will be supported under the subsidy scheme: those under MAD 30 million and those under MAD 60 million. However, ongoing discussions between the Ministries of Housing, Economy, and Finance, and real estate developers may lead to changes in the eligibility criteria.
To make use of the subsidy, applicants must meet three requirements.
Firstly, they must be of Moroccan nationality, have never benefited from any state housing subsidy, and not own any real estate intended for housing at the time of acquisition.
Secondly, they must sign a promise to sell and a final sale contract with a notary.
Finally, the final contract must include the acquirer’s commitment to allocate the purchased housing to their primary residence for a period of four years from the date of signing the final contract.
In addition, the government is considering implementing a lower interest rate for the beneficiaries of the program. This, however, may be challenging for the banking sector, given Bank Al-Maghrib’s recent decision to increase its main interest rate to 3% and its possibility of continuing to tighten monetary policy to combat inflation.
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