Real estate sector notes significant slowdown in Q2 with drop in transactions

Real estate sector notes significant slowdown in Q2 with drop in transactions

In the second quarter of this year, the real estate sector in Morocco has displayed signs of a slowdown, marked by a significant decline in property transactions.

Figures released by Bank Al-Maghrib (BAM) and the National Agency for Land Conservation, Cadastre, and Cartography (ANCFCC) indicate a 12% decrease in real estate transactions. 

This decline is distributed across residential properties (-10.3%), lands (-15.7%), and commercial properties (-16.9%).

The Real Estate Asset Price Index (IPAI) has also experienced a slight contraction of 0.3%. Residential property prices have decreased by 0.5%, prices of commercial properties have dropped by 0.4%, while land prices have shown a modest appreciation of 0.3%. 

When compared annually, the IPAI reveals a near-stagnation, with land and commercial property prices showing progress, but a decline in residential prices. Residences have seen a 0.5% decrease in prices, with villas experiencing a significant drop (-5.7%) and houses showing a slight increase (+0.7%). 

Transactions have receded by 4.7%. As for lands, there has been a price increase of 0.9%, but the number of transactions has plummeted by 6.9%. In the case of commercial properties, a noteworthy increase of 2.1% has been observed, primarily driven by a surge in demand for commercial spaces.

The real estate dynamics vary across different cities. In Marrakech, prices have marginally increased by 0.7%, while in Casablanca, they remain stagnant.

On the other hand, Rabat has witnessed the most significant decrease, experiencing a decline of 3.7%. 

In Tanger, the price index has decreased by 0.7%. These fluctuations in prices are accompanied by shifts in transaction volumes. For instance, Casablanca has seen a significant decline of 13.1% in property sales.

LEAVE A REPLY

Please enter your comment!
Please enter your name here