Real estate: it's time to invest in Morocco
Slowdown in prices and increased sales
Oxford Business Group (OBG), the Moroccan property market is rather favorable to buyers. The slowdown in property prices recorded in Morocco in 2014 has had little impact on trading volume, with a total sales across the country turned up.
This is what emerges from the recent publication of the British cabinet business intelligence, entitled 'The Moroccan property market driven by demand in the residential segment.' Thus, to OBG, if margins of operators have seen significantly reduced in 2014, low prices have driven demand up in a buyers' market. Also, sales of apartments rose by nearly 17% and commercial real estate sales rose 13.5%.
For their part, sales of detached houses fell by almost 10% yoy, a phenomenon which is explained, according to OBG, partly by the fact that social housing was the main engine of the activities of building sectors and real estate in recent years.
Regarding the market as a whole, OBG believes that the sector's activities have stabilized, following a rise in 2007 and a decline in the years that followed. In this sense, the sector benefited from state support, which has deployed a set of tax incentives including tax exemptions to construction projects of over 500 units and exemption from VAT buyers with low incomes when buying a new property.
Basically, to OBG, market fundamentals remain relatively strong, and the outlook for medium and long term are reinforced by a strong demand for low-cost housing units, the country indeed suffering from a persistent deficit of affordable housing in its urban areas, as well as the possibility of an increase in sales of high-end real estate that should flow from the European economic recovery.
© Invest Marrakech - published on Barnes Marrakech on 06/01/2016
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