The supply far exceeds the demand and the transactions are done in drops. Prices continued to fall in Casablanca, Rabat and Tangier and stabilized in Marrakech. The DGI price repository is very dissatisfied.
The local market comes first!
The residential real estate market continues to look grim. Professionals approached in major cities are unanimous: 2017 has been a difficult year. Whether in the new or second-hand market, the transactions were trickle down. In Casablanca for example, the offer is very abundant, especially on the nine. Last year, several neighborhoods were opened to the construction of buildings, not to mention real estate projects on the side of Bouskoura, Dar Bouaaza, etc. An offer considered even too abundant and therefore worrying for several promoters, whose optimism quickly shook. Many regretted having invested in good projects on paper but which proved to be a big flop once marketed. “After several months of waiting, a developer who owns a building very well located in the heart of Casablanca could only make one transaction, selling the ground floor to a bank of the place”,
Alarm a real estate agents!
That said, it is the demand of residents that represents the true barometer of residential real estate in Morocco. Today, this barometer reveals that the sector is still small.
“The sluggishness of the sector continues in all segments, I do not see a real recovery,” said Mr. Lahlou. “The morale of individuals is struggling to recover, and will recover after an overall economic recovery of the country,” he adds.
A statement shared by Othmane Benhallam, director of the agency Guy Hoquet in Morocco: “Real estate is linked to the country’s economy. When the economy is not good, real estate suffers.”
The director of the agency present in Casablanca and Marrakech confirms that the slowdown is global, but to compare the two cities, it is more palpable in Marrakech where the supply of second homes is abundant: “In Casablanca is more solid since it is the main residential that dominates, “he says.
However, he explains that “the demand is still there, we even have a housing deficit, the question is whether supply is adapted to demand”.
This adaptation of the supply to an increasingly demanding demand is starting to be felt by some promoters (raising the level of quality, small areas, common equipment …) who also do not hesitate to lower prices, in order to liquidate their stocks.
“Today the promoters have only one idea in mind: sell and quickly,” said Mr.Lahlou.
How to survive in a Local Market : Suggestions !
Our interlocutor goes so far as to say that promoters who do not adapt to these new market laws and continue to favor large margins will not survive.
On the other hand, our various interlocutors are not unaware of the role of banks in the recovery of the sector, and point out that as soon as the banking sector lowers its rates slightly, the effect on demand is visible. A statement confirmed by a banker, preferring to speak on condition of anonymity, which ensures that the last decline in mortgage rates has slightly revived the demand for these funds.
As a result, it is essential to review and reorient the current projects in terms of habitat, so that they meet the expectations of the population.
As such, future housing demand is estimated at 1.5 million units. However, to meet this demand, we must act on many levels: prevention of insalubrious housing, taking into account the quality of housing, integration of notions of social mixity, respect for spatial equity … Clearly, the demand for housing will be strong in the coming years, but it will be necessary to rethink the offer so that it can best meet the expectations of citizens.