Residential real estate in Morocco - statistics & facts
The residential real estate market in Morocco has undergone significant changes in recent years, driven by a rise in urbanization and national economic shifts, which ultimately affect domestic trends. As one of the most stable countries in North Africa, Morocco has attracted notable international investment in the real estate sector. However, how affordable is the Moroccan housing market and what options are available to the consumer?
While government assistance could provide some relief, Morocco's high unemployment rate remains a challenge, especially following the major job losses across all sectors and social classes due to the coronavirus (COVID-19) pandemic. Taking this into account, the country remains among the first five countries with the highest property price-to-income ratio in Africa, which raises concerns about housing affordability for the growing population in both rural and urban areas.
Urban lifestyle at all costs
With Morocco's urban areas offering better job opportunities as well as improved living standards and infrastructure, the country’s urbanization rate reached over 65 percent in 2023, which was the highest level in the past decade. This growing urban population has ignited the demand for housing and the expansion of residential areas. The latter ranges from affordable social housing to luxury villas and traditional riads. However, there is a persisting supply deficit which stood at 340,000 units in 2022, with the number likely to increase after the recent earthquake in the Marrakech and Al Haouz regions which left many families homeless. Nonetheless, the deficit has significantly declined since 2010, mainly reflecting the efforts of Morocco's public and private sectors to bridge this gap. Interestingly, two and three-bedroom apartments were the most popular building choice among buyers, possibly the most appealing to new couples and middle-class families.Affordability and financial assistance
Casablanca, Morocco's most populous city, has the highest residential real estate prices in the country, with apartments averaging 1,274 U.S. dollars per square meter and villas reaching 1,677 U.S. dollars per square meter. Unfortunately, for the new rural-urban migrant, these often static prices can be very high, throwing more light on the question of affordability. However, to alleviate this burden, the Moroccan government has introduced several support options. First, homebuyers earning less than 400 U.S. dollars per month can apply for direct financial assistance of up to 7,252 U.S. dollars, while another 1,010 U.S. dollars is provided to widows. Furthermore, as part of the government's initiative to help families with modest incomes purchase real estate properties, the Damane Assakane fund was created to grant real estate loans, assisting 291,623 households in 2023.While government assistance could provide some relief, Morocco's high unemployment rate remains a challenge, especially following the major job losses across all sectors and social classes due to the coronavirus (COVID-19) pandemic. Taking this into account, the country remains among the first five countries with the highest property price-to-income ratio in Africa, which raises concerns about housing affordability for the growing population in both rural and urban areas.
