Spectacular rise in the price of building materials, delay in the adoption of the implementing decree for the 2023 Finance Law with regard to direct aid schemes for new buyers, erosion of purchasing power, taxation and taxes, increases in the key rate decided by Bank Al-Maghrib… In Morocco, the real estate sector is struggling to recover. The year 2023 begins under bad auspices.
To read: In Morocco, the real estate market is experiencing a sharp slowdown
The delay in adopting the implementing decree for the direct aid schemes for new buyers announced in the 2023 Finance Act “is a big problem that we are currently facing”, underlines the vice-president of the National Federation of real estate developers (FNPI), Anice Benjelloun in an interview with the newspaper The morning. “The ministry had promised that this decree would see the light of day before the end of the year, then it was postponed until the end of January, and today we see nothing coming,” he laments. According to him, this delay means that the small number of potential customers who wanted to buy a home are waiting to get a clearer idea of what will be put in place.
To read: Real estate in Morocco: drop in supply and increase in demand
Taxation and taxes, the other difficulty faced by professionals in the sector. “It should be noted that just for taxation, in addition to the usual taxes (VAT, IS, etc.), the sector is burdened with other charges such as registration and land conservation fees which are very heavy and which are raise up to 12% of the price of the acquisition”, explains the person in charge.
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“Unlike all other sectors, when we buy land, which is our raw material, we have to pay land registration and conservation fees”, he adds, adding that two new fees and taxes were introduced this year. These are communal fees for obtaining a residence permit and a tax on debris generated by construction sites.