Between the erosion of purchasing power and the meteoric rise in inputs, real estate developers are pointing the finger at suppliers of building materials. Opposite, the construction materials industries refuse that the former try to make them responsible for their misfortunes.
The tone rises between real estate developers and suppliers of building materials because of the prices applied on the market. Before saying more, let’s look at cement sales, the main barometer of the construction and public works sector (BTP).
After the slump recorded in April 2022 (902,513 tonnes), following the good scores achieved from January to March, cement sales are recovering little by little, even if they fail to catch up with the levels of the first quarter. Recall that in the first quarter of 2022, the lowest level was recorded in February with 1,111,349 tonnes sold.
In May 2022, cement deliveries reached 945,617 tonnes compared to 882,785 tonnes in May 2021. Cumulatively, at the end of May 2022, sales by members of the Association of Cement Producers (APC) fell by -3.12% , compared to the same period of 2021, a decrease of 169,893 tonnes. Contacted by Les Inspirations Éco, David Toledano, president of the Federation of Building Materials Industries (FMC), links the April slump to the rainy season.
“In April, there were rains, which were late, and which slowed down the construction sites. This is why the decline was stronger than expected. With the holidays, the resumption of construction sites took place slowly. In May, we are witnessing a slight rebound, which should continue to reach somewhat more “normal” figures. We hope that the recovery will continue and that this will erase the negative notes of recent times, in particular, the restarting of major projects.
We are not the scapegoats of difficulties of real estate developers!
For the time being, several construction sites are on hold and they are not regarding to restart. Among the reasons for the difficult rise in cement sales are often the difficulties experienced by real estate developers. Between the erosion of purchasing power and the meteoric rise in the price of building materials, the property development sector is struggling to get its head above water.
“Today, there is a slowdown in housing production, because the prices of inputs are excessive,” laments Mustapha Allali, vice-president of the National Federation of Property Developers (FNPI). Refusing that the building materials sector is the scapegoat for the difficulties that real estate developers talk regarding, David Toledano maintains that unlike the automotive sector, the building materials sector does not suffer from availability problems.
“Real estate developers who want to work are working. Inflation is rampant around the world, not just in Morocco. We suffer the increases and pass them on. We refuse that they try to make us responsible for their misfortunes.
According to our calculations, construction materials weigh at most for 30% of the costs that real estate developers have to bear. A good part of their costs are generated by items such as land”. In Les Inspirations Éco n°3113 of Friday June 3, 2022, Mustapha Allali, vice-president of the FNPI, asked for a reduction in the general construction regulations to give real estate professionals a breath of fresh air: “Everything that developers are asking for a reduction of 35 to 40% from the general building regulations. For example, give us the possibility of adding a floor in areas where buildings are limited to four levels, taking into account the high cost, even the inaccessibility of land in large cities.
Tightening of property development loan criteria
According to Bank Al-Maghrib’s bank loans and deposits dashboard, at the end of April 2022, bank loans to companies operating in real estate recorded a 2.7% drop in their loans. And to drive the point home, according to the available results of the survey on the conditions for granting credit for Q1-2022, the criteria would have been relaxed for cash loans, kept unchanged for those for equipment and tightened. for property development loans.
By size, the criteria would have been kept unchanged for both VSMEs and LEs. As for demand, it would have experienced a drop both for VSMEs and for GEs, and for all credit items. However, crowdfunding for housing, in particular in the form of real estate Murabaha, continued to grow and stood at 16.9 billion dirhams, following 12.8 billion dirhams a year earlier.
Modeste Kouamé / ECO Inspirations
–>
<!–
SOUTENEZ LesEco.ma DANS SA MISSION D’INFORMATION
En cette période difficile, LesEco.ma a besoin de votre soutien.
Votre fidélité et votre engagement sont décisifs pour la pérennité et le développement de notre site web .
SI VOUS SOUHAITEZ SOUTENIR NOTRE MISSION, FAITES UN DON GRATUITEMENT EN REGARDANT UNE PUBLICITE
Je soutiens LES ECO gratuitement
–>
