Fluctuation of Real Estate Prices in Morocco : Exclusive Analysis 2023

Revelation in the Moroccan Real Estate Market: Post-Covid Drop in Property Transaction Prices !

Morocco - The latest data shakes up the Moroccan real estate pricing market with a surprising revelation: a general decrease in property transaction prices since the Covid-19 crisis up to mid-2023. A detailed report by agenz.ma, a pioneer in transparent real estate data, sheds light on figures that could influence both buyers and sellers.

A Decrease in Numbers: Casablanca as an Example

At the top of the list, Casablanca, the economic capital, shows an impressive average decrease of 8.53% in transactions for apartments for sale in Casablanca, a trend that is confirmed across all the provinces analyzed. To measure this compound annual decline (CAGR), experts turn to a formula that reflects the reality of the market over the three-year period. This translates into a negative annual evolution that should alert market players.

The villa market in Casablanca has also taken a hit since the crisis. The sample of 1202 villa transactions analyzed shows that it is becoming increasingly difficult to find a buyer for luxury villas. This resulted in a decrease in the observed price per square meter for sold villas by 1961 dirhams.

Beyond Casablanca, other provinces also show a significant decrease in real estate transactions. Take, for example, Marrakech, a market generally bustling with activities and investments, where apartment prices have recorded a decrease of 5.3% over 3 years. But this is not an exception; it is a reflection of the new real estate reality that affects several regions.

Price per square meter decrease in dirhams by province

Marrakech: Luxury in Struggle

Marrakech, often considered the jewel of luxury real estate in Morocco. But the 692 transactions analyzed reveal that the luxury sector has been only minimally active in Marrakech, where the average prices of houses actually sold post-Covid dropped by nearly 3054 dirhams per square meter. This drop marks a striking contrast with the usual bustle of the ochre city.

For those looking to buy villas in Marrakech, the timing could be ideal to invest.

Rabat: The Administrative Capital in Decline

Despite a notable decrease in the number of real estate transactions for apartments in Rabat, the kingdom's capital, manages to maintain its high prices with a decrease of 0.7% over 3 years. Rabat remains once again the city where apartments are the most expensive in Morocco. This trend is all the more notable as it concerns the center of governmental and diplomatic affairs, indicating a reluctance or inability of the market to rebound post-pandemic.

If you want to know more about real estate prices in Rabat by neighborhood, feel free to navigate on the price reference of agenz

Agadir : A Surprising Recession

The real estate sector in Agadir, with its tourist and climatic attractiveness, is not spared. Data reveal a decrease of 22.84% in the average transaction prices for villas, to be taken with caution as the sample analyzed in Agadir consists of 354 villas sold. This is all the more significant as the city had been among the constantly growing markets before the pandemic.

National Repercussions

These declines are not isolated and reflect a national trend that can be observed across the Moroccan real estate spectrum. The post-Covid impact seems to have reshaped the landscape of real estate transactions, with diverse consequences depending on the province and the type of property concerned.

The methodology applied by agenz.ma for these calculations takes into account actual transactions and offers a more revealing picture of market movements compared to traditional methods, like those of Bank Al-Maghrib (BAM). This suggests a period of readjustment for the markets and possibly buying opportunities for those who can read between the lines of these data.

While these figures may seem alarming, they are a valuable indicator for investors and potential buyers, allowing them to better understand the Moroccan real estate market in an increasingly uncertain global economic context.

Analysis and Methodology: agenz.ma vs BAM

While Bank Al-Maghrib (BAM) uses a method of repeated sales, which excludes new properties and is limited to properties sold multiple times, agenz.ma offers an analysis based on actual transactions over the past three years. This presents a more accurate picture of the market reality, highlighting that the observed declines do not necessarily mean that the value of properties not put on the market is decreasing, but rather that concluded transactions are done at lower prices.

A Selective Market ?

These figures do not tell the whole story. It is possible that certain higher value properties are not put on the market, which may partially explain why actual transactions reflect lower prices. This suggests a selectivity in the market, where only certain types of properties are sold, thus influencing the price indicator.

What This Means for Buyers and Sellers

For future buyers, this situation could be synonymous with opportunities to seize, while for sellers, it is a critical moment to adjust expectations and pricing strategies. The current market fluidity requires all participants to be informed and strategic in their decisions.

Future Prospects

While continuing to monitor market developments, data from agenz.ma bring new light and could be the catalyst for a necessary adjustment in the Moroccan real estate sector. Experts recommend continuous monitoring of trends to anticipate future market movements. For investors and residents, the message is clear: the Moroccan real estate market is dynamic, and understanding these trends is crucial for successfully navigating the post-Covid real estate landscape.

Stay tuned for more in-depth analysis and informed advice on the Moroccan real estate market, where agenz.ma continues to lead the way in providing transparent and up-to-date data.

If you are preparing to buy an apartment in Morocco, do not miss the regular updates of our price reference for real estate in Morocco.

Agenz - Data

6 Nov 2023