2023-12-16 10:02:50
L’Immobilier has been experiencing a certain sluggishness for several years, marked by a slowdown in sales and investments. And for good reason, numerous events have impacted the sector, such as the economic crisis, the pandemic, then the bad economic situation generated in part by the war in Ukraine. The sector was also impacted by the slowdown in the supply dedicated to social and middle-class housing.
This formula was very successful for years, to the point that products were sold off-plan and buyers waited years for delivery. Currently, we note the presence of a significant stock of unsold housing not only in the social sector, but also for all categories.
Many developers have reduced construction starts to gain more visibility. To revive activity, the government has taken a series of fiscal or regulatory measures, including in particular the revision of the subsidy dedicated to approved housing. The market welcomed these measures, but professionals in the sector expressed some reservations.
For Mohamed Alaoui, real estate expert, “2024 could be a year of recovery for the sector, but certain elements risk disrupting this situation. There is currently a climate of wait-and-see attitude and also uncertainty due mainly to an unfavorable economic situation. The drought that has been raging for years has had negative effects on the national economy, and of course on consumption and investment demand. The gloom was accentuated by inflation which impacted the purchasing power of Moroccans. The subsidy program announced for Housing alone cannot breathe new life into the sector.
Alaoui also believes that “real estate in Morocco is still considered a cash cow from a tax perspective. It is overtaxed, generating additional costs for consumers. To make it more dynamic, the government must act on both the subsidies and taxation aspects.” Lacking visibility, many professionals have expressed reservations regarding their expectations in 2024, and especially regarding the effect of the housing subsidy program. As soon as the program was announced, the National Federation of Real Estate Developers (FNPI) demonstrated “its commitment to playing a major role, affirming that its members will spare no effort to achieve the various objectives targeted”.
However, she believes that we must wait for these measures to come into force to make a decision. She emphasizes that the sector includes many players from both the public and private sectors. “The value chain can only operate at a sustained pace if all real estate players are strongly involved. To succeed, the new scheme needs greater fluidity and simplification of administrative procedures. Despite the complaints of professionals in the sector, authorizations still take a long time to be issued compared to other countries,” the FNPI points out.
Financing is the lifeblood of the sector for both developers and buyers. The Federation believes that “the conditions for granting credit by banks have become restrictive, not to mention the increase in interest rates which increases the cost of acquisition. It is important to reduce these obstacles to give new impetus to activity.
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