Morocco and real estate returns: a promising recovery
Unlike many Arab countries, often tormented by internal wars, Morocco enjoys considerable political stability. The very rapid economic growth, the fall in unemployment, and numerous programs aimed at improving residential areas, especially in favor of the less affluent social classes, are just some of the elements that represent the strengths of Morocco.
The slow democratization and the opening towards foreign countries have brought really interesting advantages to this nation. First of all, the real estate sector.
Both the supply side and the demand side are well proportioned, in terms of mutual interests and stability on the brick market. The returns for the owners of the building are satisfactory even in the long term, while for potential investors, the Moroccan market offers solutions closely linked to the artistic field and oriented towards the green.
Let us now analyze the prices of the properties. According to the Moroccan central bank, in 2018, the index on the national scale of property prices increased by 0.9%, a slow and minimal increase compared to the zero growth of the previous year, that of apartments by 1.5% and of historical villas of 6%.
At the beginning of the year, in 2019, the following increases and decreases were recorded in the main cities, about the average price of the buildings.
Rabat + 3.7%
Casablanca + 1.5%
Marrakech - 5.5%
Tangier + 1.7%
In general, land prices fell by 2.4% in 2018, after an increase of 1.8% in 2017 and 6% in 2016.
It is good to remember that these values are totally different from the previous decade, when the sharp rise in GDP had failed to achieve such satisfactory results (in broad terms).
In general we can therefore say that the returns of the Moroccan real estate market, turn out to be positive, despite the costs related to the transactions are really high.
But what are the property prices in Morocco?
As far as the so-called Riad is concerned, the typical houses of the Moroccan culture, it starts from 2,400 dollars per square meter. A riad of 500 square meters reaches more or less 1 million dollars, compared to the previous 1.5 million in recent years.
This slump in prices has obviously stimulated the demand side, bringing a great deal of capital, especially foreign ones, to this warm and fascinating land in every sector.
The large living rooms that overlook the tiled courtyards full of mosaics are the basis of these homes, which are particularly interesting in the Millennials who wish, even if only temporarily, to live a truly unique Moroccan life experience.
A rapidly growing demand and an 'offer able to satisfy it, they are the perfect and winning combination of this unique and strong market. What are the forecasts for the coming months?
It is not easy to know, but what we can do is hope that this positive wave can continue uninterrupted.
The slow democratization and the opening towards foreign countries have brought really interesting advantages to this nation. First of all, the real estate sector.
Both the supply side and the demand side are well proportioned, in terms of mutual interests and stability on the brick market. The returns for the owners of the building are satisfactory even in the long term, while for potential investors, the Moroccan market offers solutions closely linked to the artistic field and oriented towards the green.
Let us now analyze the prices of the properties. According to the Moroccan central bank, in 2018, the index on the national scale of property prices increased by 0.9%, a slow and minimal increase compared to the zero growth of the previous year, that of apartments by 1.5% and of historical villas of 6%.
At the beginning of the year, in 2019, the following increases and decreases were recorded in the main cities, about the average price of the buildings.
Rabat + 3.7%
Casablanca + 1.5%
Marrakech - 5.5%
Tangier + 1.7%
In general, land prices fell by 2.4% in 2018, after an increase of 1.8% in 2017 and 6% in 2016.
It is good to remember that these values are totally different from the previous decade, when the sharp rise in GDP had failed to achieve such satisfactory results (in broad terms).
In general we can therefore say that the returns of the Moroccan real estate market, turn out to be positive, despite the costs related to the transactions are really high.
But what are the property prices in Morocco?
As far as the so-called Riad is concerned, the typical houses of the Moroccan culture, it starts from 2,400 dollars per square meter. A riad of 500 square meters reaches more or less 1 million dollars, compared to the previous 1.5 million in recent years.
This slump in prices has obviously stimulated the demand side, bringing a great deal of capital, especially foreign ones, to this warm and fascinating land in every sector.
The large living rooms that overlook the tiled courtyards full of mosaics are the basis of these homes, which are particularly interesting in the Millennials who wish, even if only temporarily, to live a truly unique Moroccan life experience.
A rapidly growing demand and an 'offer able to satisfy it, they are the perfect and winning combination of this unique and strong market. What are the forecasts for the coming months?
It is not easy to know, but what we can do is hope that this positive wave can continue uninterrupted.
