In light of the note from Bank Al-Maghrib (BAM) and the National Agency for Land Conservation, Cadastre and Cartography (ANCFCC) on real estate assets, there is an improvement in the sector. Explanations.
It is often said: "When construction is going well, everything is going well". This adage is very apt after the publication of Bank Al-Maghrib (BAM) and the National Agency for Land Conservation, Cadastre and Cartography (ANCFCC) on real estate assets. Which saw their prices rise during the second quarter of 2022, recording a jump of 0.4%.
For both institutions, the real estate asset price index (IPAI) appreciated in the second quarter of 2022 year-on-year. This development, they explain, is the result of the increase of 1.8% in land and decreases of 0.2% in residential and 0.4% in commercial property. However, on closer inspection, this increase was not expected so quickly. Indeed, as a manager of the Moroccan Association of Real Estate Agents (AMAI) points out, the market was previously experiencing a disruption of a large stock of real estate that had to be liquidated.
According to our interlocutor, who requested anonymity, several developers have had to revise their prices downwards in order to sell, especially in small and medium-sized towns. Even in Casablanca and Rabat, this trend is increasingly visible in new urban areas such as Bouskoura, Rahma or Nouaceur.
According to our expert, most households are heavily indebted and their purchasing power is low. "This makes them ineligible for credit. We need political will to invest in new, more innovative avenues to give the sector new momentum," he notes. But the dynamics of the sector quickly reversed the curve.
Residential property
This is confirmed by this note on the overall trend of the real estate market during the 2nd quarter of 2022 from BAM and ANCFCC. Which note reveals that the number of transactions fell by 22.5%, in connection with the decline of 20.4% in sales of residential properties and 37.7% in land.
On the other hand, sales of goods for professional use increased by 7.2%. For this other player, who did not hide his satisfaction upon reading this report, remembering the Covid-19 period, "real estate is one of those sectors heavily impacted by the health crisis that has been raging in Morocco for a long time, accentuated by this pandemic. A situation that is certainly unprecedented, but which opens the way to a structural and in-depth reflection on a possible overhaul of all branches of activity."
He also adds that the case of real estate is a bit special because this economic hub, which contributes 14% of the GDP and generates 1 million jobs, really needs a rescue plan. The sector is, in fact, a big sick body and Covid-19 only makes its clinical picture worse.
Even if today the reality proves another analysis. To return to the report of the BAM and the ANCFCC, we note by category of assets that the prices of residential depreciated by 0.2%, in connection with the decrease of 0.5% of the prices of apartments. Conversely, we read in the note, the prices of houses and villas increased respectively by 0.5% and 1.2%.
As for transactions, their number fell by 20.4%, reflecting decreases of 21% for apartments, 10.5% for houses and 15.8% for villas. Another strong signal from this report concerns land. At this level, prices increased by 1.8%, and the number of transactions fell by 37.7%. For their part, prices of goods for professional use fell by 0.4%, with a decrease in prices of 0.7% for commercial premises and an increase of 1.9% for offices.
Commercial premises
For their part, the document states, transactions recorded an increase of 7.2%, resulting from increases of 6.2% in sales of commercial premises and 12.5% in those of offices. Quarterly, the IPAI is up before 0.2% in Q2-2022, in connection with the increase of 0.3% in residential prices, 0.1% in those of land and 1.1% in those of goods for professional use, indicate the rapporteurs.
As for the number of transactions, it saw an increase of 4.6%, covering an increase of 8.1% for residential properties and decreases of 3.7% for land and 1.9% for properties for professional use, the note highlights. However, not all cities are in the same boat.
Thus, prices increased in Q2-2022 by 0.6% in Casablanca and by 0.8% in Rabat and Tangier each, while in Marrakech, they recorded a decrease of 0.3%. For many observers, this improvement in the real estate sector would be the consequence of the efforts made by the government since 2021.
Indeed, the 2021 LF had extended to June 30, 2021 the reduction in registration fees for real estate purchases introduced in the 2020 amending LF. This provision provides for a reduction of 50% for acts involving the acquisition, for consideration, of vacant land intended for the construction of housing or premises for residential use without the total taxable base amount exceeding 4 million DH. The 2021 LF also validated the extension of the tax framework for Real Estate Collective Investment Organizations (OPCI) to also cover rentals for residential use. A whole series of measures that are now putting a smile on the faces of professionals.
Source: www.lopinion.ma, article from Thursday August 18, 2022
