MAY 23, 2023
According to BAM and ANCFCC indicators, the increase in real estate transactions reflects an increase of 3% for residential properties and 3.5% for properties for professional use as well as a stagnation for land.
Real estate sales are recovering in the first quarter of the year. At the end of March 2023, transactions showed an increase of 2.5%. This increase covers increases in sales of all real estate assets. This can be seen from the recent publication of the real estate asset price index prepared by Bank Al-Maghrib and the National Agency for Land Conservation, Cadastre and Cartography (ANCFCC). In detail, residential sales strengthened by 3% compared to the first quarter of the previous year. This dynamic reflects an increase of 2.9% for apartments and 20.6% for villas at a time when house sales fell by 1%.
Regarding land, Bank Al-Maghrib and the ANCFCC note a stagnation in this area year-on-year. Professional real estate, for its part, is doing well, posting an increase in transactions in the first quarter. Sales in this asset category have consolidated by 3.5%. This increase is in fact driven by the 12 % increase in office sales and to a lesser extent by that of sales of commercial premises (+1.8%). It should be noted that the increase in sales was accompanied by a slight increase in prices. Referring to BAM and the ANCFCC, the real estate asset price index appreciated by 0.8% for the first three months of the year. By real estate asset, there is a stagnation in the price of residential (-0.1%). This is in fact the result of a 0.5% drop in villa prices, while apartment and house prices remained stable. At the same time, land prices improved in the first quarter of the year.
There was an increase of 2% compared to the same period of the previous year. As for assets for professional use, their prices increased by 3.7% year-on-year. This increase was driven by an increase of 7.1% in office prices and 2.1% in commercial premises. If we focus on the quarterly trend, it appears that the real estate asset price index climbed by 0.3% from one quarter to the next, covering increases of 0.9% in land prices and 1.1% in professional property as well as a decrease of 0.2 % in residential prices. On the other hand, the number of transactions marked a contraction of 14.8 % compared to the previous quarter. A decline that reflects the 17.3 % decrease in sales of residential properties, 10.6 % in those of land and 3.7 % in those of property for professional use. In addition, the trend of the real estate market by city shows an increase of 5 % in prices at the level of Rabat in quarterly sliding. This progression is explained by the increase of 4.3% in the prices of residential properties and 23.1% in those of land. At the same time, the prices of assets for professional use contracted by 6.6% at the level of Rabat.
As for transactions, real estate sales posted a quarterly decrease of 1.4 % in the capital covering a decrease in sales of 1.9% for real estate and 17.4% for land sales at a time when assets for professional use recovered by 24.3% compared to the previous quarter. As for Casablanca, real estate asset prices fell by 0.1% from one quarter to the next following the decrease of 4.9% in land prices and the increase of 0.3% in residential prices.
Similarly, the price of professional real estate increased by 0.1% at the metropolitan level. As for sales, BAM and ANCFCC observed a decline of 17.4% in Casablanca reflecting the declines in transactions of residential properties (17.9%), land (3.3%) and assets for professional use (20.8%). In Marrakech, the prices of real estate assets increased by 0.7%.
In this sense, there was an increase of 3.3% in land prices and 0.3% in those of assets for professional use at a time when residential prices fell by 2.2 %. Transactions at the level of the ocher city fell by 13.6% reflecting a decrease of 18.7% in sales of residential properties and 9.6% in those of land at a time when sales of properties for professional use showed an increase of 24.9 %. At the level of Tangier, the price index contracted by 0.7 % following the decrease of 1.2 % in residential prices and 0.8 % in those of assets for professional use while land prices increased by 0.4 % in the first quarter.
Similarly, real estate sales contracted by 16.2 per cent quarter-on-quarter in the Straits City. This decline was due to a 19.5 per cent decline in residential sales and a 7.8 per cent decline in land sales. Transactions relating to commercial properties improved by 7.7 per cent quarter-on-quarter.
Source: today morocco
