Morocco's Real Estate Market Faces Paradox: Prices Rise Despite Falling Demand
The real estate sector in Morocco has been shaken by several crises during the year 2022. The new and old apartment market saw a slowdown in supply and demand in the 4th quarter of 2022, according to Mubawab.
Apartment prices recorded an increase in the 4th quarter of 2022 and the average price per square meter increased by +2.1% while that of apartments stood at 10,500 dirhams, according to Mubawab cited by Aujourd’hui Le Maroc. The supply of new and old apartments fell by 7.9% and demand by 11.9% in the 4th quarter, the same source points out.
"The prices of old villas increased by 5.2%. As for old apartments, prices between the 3rd and 4th quarters of 2022 increased by 0.9%. Year-on-year, the overall price of old properties depreciated by -3.5% with a drop of -5.8% for villas and stability for apartments," it is specified. The same trend is observed for the price of new properties which "increased by 0.8%, with an increase of 2.5% for villas and a slight decrease of -0.3% for apartments" in the 4th quarter of 2022.
With an increase of 9.9% for villas and a decrease of -2.1% for apartments, the overall price of new properties experienced a jump of 4.3% on average, year-on-year. The Mubawab Price Index fell by 0.3% in the fourth quarter compared to November 2022, standing at the same price level as in September 2022, which represents a decrease of 0.77% compared to the same period of the previous year, or -1 point of the IPM.
"Casablanca, Agadir and Marrakech are the cities with the most stable prices for apartments, recording price changes between -1 and +1%," it is specified.
