Apr 11, 2015
Morocco is now a buyers' market
Morocco’s property market continues slow, with property prices rising only a little. Construction activity is depressed.
“Morocco continues to be a buyers’ market, and, on that basis, buyers are beginning to materialize thick and fast, especially under the €1.5m mark.” says Alicia Pasley-Tyler of Aylesford International.
During the year to end-Q3 2014, the nationwide real estate price index (REPI) rose by 1%, according to Bank Al-Maghrib, Morocco’s central bank. On a quarterly basis, the REPI increased 1.4% in Q3 2014 (the REPI includes residential property, commercial property, and urban land).
- · Residential property prices remained almost unchanged in Q3 2014 for the second consecutive quarter. Quarter-on-quarter, residential property prices dropped 0.2% in Q3 2014.
- · Urban land prices increased 3.4% y-o-y in Q3 2014, after a drop of 8.4% in the previous period. Land prices rose by 4.3% q-o-q over the same period.
In Casablanca, Morocco’s economic capital, the average property price stood at US$1,873 per square metre (sq. m.) in 2014, with a large apartment in a high-end neighbourhood like Gauthier selling for around US$2,172 per sq. m..
The volume of real estate transactions increased 9.3% year-on-year to Q3 2014 from a year earlier, with residential property transactions increasing 11.8%, and land transactions 1.1%.
During the latest quarter (Q3 2014), the number of real estate transactions fell 15.1% q-o-q, after rising by 18.4% the previous quarter, according to Bank Al-Maghrib.
Of the total real estate transactions in the country, apartments represent about 59% of total sales, houses 4.9%, villas 1.2% and urban land 27.2%.
Construction activity remains depressed. Construction sector value added fell 0.3% y-o-y in Q3 2014, after a slight increase of 0.2% the previous quarter, according to Bank Al-Maghrib. Likewise, cement sales, an indicator of the current situation in the construction sector, also continued to drop by 8.7% in Q3 2014 from a year ago.
The Moroccan economy expanded by 3% in 2014, after real GDP growth rates of 4.4% in 2013, 2.7% in 2012, 5% in 2011 and 3.6% in 2010, according to theInternational Monetary Fund (IMF). In the fourth quarter of 2014, the economy grew by 2.7%, after growth of 1% the previous quarter, according to the Finance Ministry.