The New Arab
The real estate sector in Morocco is expected to rebound in light of the financial support that families will benefit from to buy homes.
Morocco began activating direct financial support for the acquisition of housing for the benefit of needy and middle-class groups
This trend is expected to contribute to reviving the real estate sector, which has declined in the past two years as a result of the decline in both demand and supply.
This year, Morocco launched a program to provide support of $10,000 to Moroccan residents or expatriates wishing to purchase housing whose price is less than or equivalent to $30,000, including fees.
And $7,000 for the purpose of purchasing housing whose price is more than, less than, or equivalent to $70,000, including fees.
By activating the program, the government hopes to motivate families to purchase housing through an offer of up to 114,000 housing units, including 58,000 housing units for the benefit of the middle class.
The Ministry of National Territorial Preparation, Construction, Housing and City Policy expects real estate production to rise by 10 percent annually.
Morocco has established an electronic platform that allows those wishing to benefit from support to submit their requests
As of last week, it had received more than 16,000 applications from residents and expatriates, with 73 percent related to housing directed to needy groups and 27 percent related to middle-income groups.
The High Commission for Planning reports that the construction and public works sector recorded a decline of 1.3 percent last year after a decline of 3.6 percent in the previous year.
It noted that the demand for real estate was affected by the tightening of financing conditions and the deterioration of the purchasing power of families
In parallel, supply was affected by the repercussions of high construction costs and financing difficulties for real estate investors, but the continued implementation of infrastructure projects makes it possible to partially cover the results of poor construction activities.
The Bank of Morocco and the National Agency for Real Estate Conservation and Land Survey recorded, in their monthly report, a decrease in the number of real estate transactions in the third quarter of last year by 7.2 percent.
After a decrease in transactions for residential real estate by 5.6 percent, land plots by 10.6 percent, and real estate intended for professional use by 13.2 percent.
The delegation expects that the construction and public works sector will rebound this year, as it will benefit from the increase in public investment, especially in infrastructure, and from the activation of the direct support program for housing acquisition.
It is expected that the activities of this sector will benefit from the reconstruction plan in the areas affected by the earthquake that struck areas in the Kingdom last September.