Commercial Real Estate - Morocco | Statista Market Forecast

The Commercial Real Estate market market in Morocco is expected to reach a projected value of US$179.10bn in 2024.
This market is also forecasted to demonstrate an annual growth rate (CAGR 2024-2029) of 2.33%, which will lead to a market volume of US$201.00bn by 2029.
When compared globally, the United States is anticipated to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
The commercial real estate market in Morocco is experiencing a surge in foreign investment due to the country's stable political and economic environment.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Morocco has been experiencing significant growth and development in recent years.

Customer preferences: Customer preferences in the Commercial Real Estate market in Morocco have been shifting towards modern and well-equipped office spaces. Businesses are increasingly looking for office spaces that offer a range of amenities and facilities, such as high-speed internet, flexible working spaces, and modern design. This trend is driven by the increasing demand for flexible and collaborative work environments, as well as the need for businesses to attract and retain top talent. Additionally, there is a growing preference for mixed-use developments that combine office spaces with retail and leisure facilities, creating vibrant and dynamic work environments.

Trends in the market: One of the key trends in the Commercial Real Estate market in Morocco is the development of new office spaces in major cities such as Casablanca and Rabat. These cities are experiencing rapid urbanization and economic growth, attracting both domestic and international businesses. As a result, there is a growing demand for office spaces in prime locations, leading to the construction of new commercial buildings and business parks. Furthermore, there is a focus on sustainable and green buildings, with developers incorporating energy-efficient features and environmentally-friendly materials into their projects. Another trend in the market is the rise of co-working spaces and flexible office solutions. This trend is driven by the increasing number of startups and small businesses in Morocco, as well as the growing popularity of remote and flexible working arrangements. Co-working spaces offer affordable and flexible office solutions, allowing businesses to rent workspace on a short-term basis and scale up or down as needed. This trend is expected to continue as the gig economy and remote working become more prevalent.

Local special circumstances: Morocco's strategic location at the crossroads of Europe, Africa, and the Middle East makes it an attractive destination for businesses looking to expand their operations. The country has a stable political environment, a well-developed infrastructure, and a skilled workforce, making it an ideal location for companies in various industries. Additionally, the Moroccan government has implemented several initiatives to attract foreign investment and promote economic growth, including the development of free trade zones and the simplification of business regulations.

Underlying macroeconomic factors: The Commercial Real Estate market in Morocco is influenced by several underlying macroeconomic factors. The country has experienced steady economic growth in recent years, driven by sectors such as tourism, manufacturing, and services. This economic growth has led to increased demand for office spaces and commercial properties. Additionally, Morocco has a young and growing population, which is driving urbanization and creating a need for more housing and commercial spaces. Furthermore, the government's efforts to diversify the economy and attract foreign investment are expected to further stimulate the Commercial Real Estate market in Morocco.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.