The real estate sector in Morocco is witnessing a significant decrease, as official statistics reveal a substantial drop in both property sales and transactions in the first quarter of 2025.
As per the “Real Estate Asset Price Index,” a collaborative report by the National Land Registry Agency and Bank Al-Maghrib, overall transactions fell by 30.3%, indicating a 29.3% decline in home sales.
Real estate prices showed little change over the course of the year. According to the report, there was a 0.1% increase in home prices, whereas urban land values dropped by 0.1%, and commercial property values decreased by 0.3%. Sales in every category also saw a major decline—residential sales fell by 14.5%, urban land transactions by 16.4%, and commercial property deals by 18.2%.
Experts in the industry are urging a reassessment of the government’s direct housing subsidy initiative, which began in early 2024, due to its low impact. Updated government figures up to July show that only 55,000 applicants have been approved from over 177,000 applications submitted.
Anis Benjelloun, the vice president of the National Federation of Real Estate Developers (FNPI), characterized the decline as a severe and long-lasting crisis.
The most recent data from the Real Estate Asset Index is concerning and must be taken seriously,” Benjelloun said to MG NEWS DAYAR. “These are not just grievances from builders — the information is provided by reliable public organizations such as Bank Al-Maghrib and the land registry.
Benjelloun highlighted that a key measure for developers is the count of housing units being built or officially finished — both of which have declined significantly.
He observed that the licensing of new units has decreased, along with sales and transaction patterns, which have dropped by approximately one third.
He cited the decline in part to increasing project expenses and higher costs for building materials. “Cement sales might indicate some construction activity,” he noted, “but they are not dependable measures of real estate sales or housing output.”
Employee expenses have also increased by over 30%, particularly as labor moves towards public infrastructure initiatives after a recovery in the farming industry.
A real estate specialist, Amine Mernissi, highlighted multiple interconnected problems contributing to the slowdown. The main issue is the recent uncertainty regarding the handling of tax clearance certificates by notaries via the “Tawtique+” platform. This arises from the introduction of Law No. 14.25, which revised the regulations on local taxes.
“Property transactions have been greatly affected in recent months because of delays in handling tax-related paperwork for property transfers,” Mernissi stated. Technical issues, data leaks, and cyberattacks on platforms have also made people hesitant about digital transactions, increasing overall uncertainty.
He stated that although the industry deals with a mismatch between supply and demand, the fundamental demand is still robust, indicating possibilities for recovery. “There is still trust among buyers, especially with the return of Moroccan expatriates this year,” he mentioned.
Mernissi also highlighted the unequal demand for subsidized housing—especially within the 300,000 MAD housing category—in cities such as Fez, which has the highest number of applications.
He highlighted difficulties in obtaining land near large cities because of expensive costs and limited financial ability of numerous residents.
He ended by calling on the state to set aside public land exclusively for property development and to speed up the execution of the newly passed legislation regarding regional housing and urban development authorities.
He stated that these organizations are crucial for gathering land and managing local development initiatives.
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