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Morocco is a lower-middle income country in North Africa with one of the most diversified and developed economies on the continent. Despite its exposure to a succession of economic crises in recent years, the Moroccan economy has remained resilient. In 2017, economic growth was induced by the progression of the agricultural sector that accounts for close to 15 percent of Morocco’s GDP and employs close to 40 percent of the Moroccan workforce. Furthermore, the country is recognized as one of the best emerging markets for foreign investment and is currently ranked 69th on the World Bank’s Doing Business index. In 2017, the sales of cement, a key indicator of the construction sector, declined by 2.54 percent against a decline of 0.7 percent in 2016 accumulating the 6th consecutive annual decline. This is explained by the decline in housing starts, whether for social housing or self-build housing that absorbs around 40 percent of national consumption.
There have been noticeable improvements in housing finance due to the increase in bank loans granted to the real estate sector (which rose by 4.2 percent in 2017). There was also a 3.6 percent increase in housing loans and a 8.7 percent increase in loans offered to real estate developers in 2017. Moreover, the increase in the prices of residential properties, land and commercial real estate induced a rise in the real estate price index in 2017.
Morocco has the most advanced and diverse housing finance market in the region. There is a wide range of sources for mortgage lending in the country, from public and private commercial banks, as well as consumer credit companies and microfinance institutions. As of 19 June 2018, this interest rate remained unchanged. A steady decline in mortgage lending rates has been observed in Morocco over the past five years. Partnerships between banks and the government make lending more accessible to middle and low income families, through the establishment of mortgage guarantee funds such as FOGARIM. Growth in the microfinance sector has been rapid in Morocco since the Microfinance Act was passed in 1999. Microfinance Institutions (MFIs) provide loans for housing purchase or construction, as well as for connections to basic utilities (amongst others).
Affordability remains an important challenge for housing in Morocco, a country where disparities remain high: the income Gini coefficient was 39.5 percent in 2014. The Moroccan government defines two types of affordable housing units, both commonly called “social” housing and differentiated by their maximum price which was capped at a maximum price of MAD140 000 (about US$14 893). Whereas, the middle income housing programme (introduced in 2013) had a maximum price of MAD6 000 (US$638) per square metre excluding taxes. The government of Morocco offers tax incentives to private developers to encourage the stimulating of social housing. These various measures not only contributed to the increase of housing supply, but, they also contributed to the improvement of the quality of housing stock.
While the real estate and construction sectors are currently experiencing a slower period, the demand for affordable housing is still high, particularly among the low and middle income population. This demand, coupled with government-led initiatives and incentives, could continue to present opportunities for investors.
Find out more information on the housing finance sector of Morocco, including key stakeholders, important policies and housing affordability:
- Macroeconomic Overview
- Access to Finance
- Housing Supply
- Property Markets
- Policy and Regulation
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.Download yearbook
Morocco is a lower-middle income country in North Africa with one of the most diversified and developed economies on the continent. Despite its exposure to a succession of crises in recent years (the global financial crisis of 2008, protracted low growth in its European trading partners since 2009, and the onset of the Arab Spring in 2011), the Moroccan economy has remained resilient. Morocco has several comparative advantages that provide reasons for optimism for the country’s future. These include relative security compared to the rest of the region, an attractive geographical position for investors, a relatively diversified economic base, and a large pool of young workers.While the country does not have any hydrocarbon wealth, it does have an estimated 70 to 75 percent of the world’s reserves of phosphates and is the third largest phosphate producer after the US and China. The phosphate and auto industries are the country’s top export sectors.
The Moroccan economy recovered significantly in 2017. Economic growth picked up in 2017 to 4.1 percent against 1.1 percent in 2016mostly driven by the rebound of the agricultural sector that accounts for close to 15 percent of Morocco’s GDP and employs close to 40 percent of the Moroccan workforce.
Exports continued their good performance in 2017 with a volume growth of 10.9 percent. Morocco is recognized as one of the best emerging markets for foreign investment and attracted nearly US$2.57 billion in foreign direct investment in 2017, an increase of 12 percent over 2016. Morocco is currently ranked 69 on the World Bank’s Doing Business index.
In 2017, the sales of cement, a key indicator of the construction sector, declined by 2.54 percent against a decline of 0.7 percent in 2016,accumulating the 6thconsecutive annual decline. This is explained by the decline in housing starts, whether for social housing or self-build housing that absorbs around 40 percent of national consumption.
Bank loans granted to the real estate sector rose in 2017 by 4.2 percent (against +2.5 percent in 2016).This performance is due to the increase of housing loans by +3.6 percent (against +5.2 percent in 2016) and loans to real-estate developers by +8.7 percent (against -4.6 percent in 2016).
In 2017, the consumer price index (CPI) increased by 0.7 percent. The increase concerned both food products (+0.1 percent) and non-food products (+1.4 percent).
The real estate price index (which gives detailed information on all formal property transactions in the country)rose by five percent in 2017 after an increase of 1.3 percent in 2016, which is due to the rise in the prices of residential properties (+ 4.9 percent), land (+ 5.3 percent) and commercial real estate (+ 7 percent).
Despite good growth prospects, the country remains in the bottom half of the group of countries with medium human development. The value of Morocco’s human development index for 2015 was 0.647 and the country was positioned 123rd out of 188 countries.This is primarily due to the extremely low literacy rates of approximately 65 percent, and an unemployment rate that increased from 9.9 percent in 2016 to 10.2 percent in 2017, with a higher rate registered among youth at 26.5 percent. The living conditions of urban and rural communities differ significantly. Poverty rates are higher in rural areas. The poverty rate in 2014 was 4.8 percent at the national level, 9.5 percent in rural areas, and 1.6 percent in urban areas.Educational opportunities are lower in rural areas, where many children drop out of primary school.
Social tensions increased in 2017, mostly in the northern region of the Rif, due to demands for better access to health services, jobs, and greater public investments. In addition, a consumer boycott campaign was launched in April 2018, targeting food, oil and gas companies. The goal of this campaign is to protest against rising inflation and persistent urban and youth unemployment.
 International Monetary Fund (IMF) (2016). 2015 Article IV Consultation- Press Release; Staff Report; and Statement by the Executive Director of Morocco. IMF Country Report No.16/35.
 Bank Al-Maghrib (BAM) (2018). Réunion du Conseil de Bank Al-Maghrib – 19 juin 2018.http://www.bkam.ma/Communiques/Reunion-du-conseil/2018/Reunion-du-conseil-de-bank-al-maghrib-19-juin-2018 (Accessed 12 July 2018).
 HUFFPOST. https://www.huffpostmaghreb.com
 The World Bank (2018). Doing Business 2018 – Reforming to create jobs – Economic Profile: Morocco. http://arabic.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Profiles/Country/MAR.pdf (Accessed 12 July 2018).
 Fédération Nationale des Promoteurs Immobiliers (FNPI) (2018).http://fnpi.net.ma/wp-content/uploads/2018/02/Immo-Chifre-Janvier-2018.pdf (Accessed 12 July 2018).
 L’Economiste. Ciment: Le marchépeine à retrouver la croissance. 27 Dec 2017.https://leconomiste.com/article/1021984-ciment-le-marche-peine-retrouver-la-croissance (Accessed 12 July 2018).
 Direction du Trésor et des Finances Extérieures (DTFE) (2017). Note de conjoncture premiers résultats 2017.
https://www.finances.gov.ma/ (Assessed 12 July 2018).
 BAM (2018).
 Haut Commissariat au Plan (HCP) (2017). La Situation du marché du travail en 2017. https://www.hcp.ma/La-Situation-du-marche-du-travail-en-2017_a2108.html (Accessed 12 July 2018).
 HCP. Introduction de Monsieur Ahmed LAHLIMI ALAMI, Haut Commissaire au Plan, à la présentation des résultats de L’enquêtenationale sur la consommation et les dépenses des ménages au Maroc. https://www.hcp.ma/Introduction-de-Monsieur-Ahmed-LAHLIMI-ALAMI-Haut-Commissaire-au-Plan-a-la-presentation-des-resultats-de-L-enquete_a1819.html (Accessed 12 July 2018).
 Reuters (2018). Morocco consumer boycott has big business in its sights. 30 May 2018. https://www.reuters.com/article/morocco-protests/morocco-consumer-boycott-has-big-business-in-its-sights-idUSL5N1SP35Z (Accessed 12 July 2018).
Access to Finance
In recent years, Morocco’s banking sector has continued to deepen, with total bank assets reaching 140 percent of GDP, and has become more diversified, including a rapid expansion into Sub-Saharan Africa. Banks are well-capitalised and profitable and benefit from stable funding sources. In 2016, in aggregate, the capital adequacy ratio stood at 14.2percent well above the Basel III requirements, and bank profitability has been stable. However, since 2012, the non-performing loan ratio has been rising due to weaker economic activity and strains in the corporate sector, reaching 7.7 percent in March 2018.
In 2016, there were 83 institutions that fell under the supervision of Bank Al-Maghrib, Morocco’s central bank, including 19 commercial banks, 33 finance companies (including 2 companies specialised in housing finance),13 microfinance associations and the Central Guarantee Fund. Following the new banking law (n°103-12) adopted in 2014, which introduced participative banks (in Morocco the term “participative” is used instead of “Islamic”), Bank Al-Maghrib in January 2017 gave approval to open five participative banks and three participative windows.Among the very first products offered on the market by these banks is housing Murabaha.
In January 2018, Morocco adopted a more flexible exchange rate regime.The Central Bank would continue to set the dirham price on the basis of a basket of euros (60 percent) and dollars (40 percent) but with a much greater margin of flexibility. The fluctuation band went from 0.3 to 2.5 percent in each direction. This measure is aimed at strengthening the resilience of the national economy to exogenous shocks in order to support its competitiveness and to improve its level of growth.
On 13 July, 2017, law 40-17 was adopted by the government. The law further strengthens the Central Bank’s independence and extends its supervisory powers. It gives it total independence from the executive branch and political partisanship, therefore granting more credibility to monetary policy.
Morocco has the most advanced and diverse housing finance market in the region. There is a wide range of sources for mortgage lending in the country, from public and private commercial banks, as well as consumer credit companies and microfinance institutions. Typical terms are 15-25 years, and housing finance can be between 50 to 100 percent of the property’s appraised value. Up to 70 percent of residential properties have fixed interest rates. In March 2016, the Central Bank cut its key interest rate by 25 basis points to 2.25 percent – its lowest rate since 2000.As of 19 June 2018, this interest rate remained unchanged.
The financing of the real estate sector by banks continues to recover, after a slump seen a few years ago. Its evolution in 2017 confirms this trend. Real-estate loans have ended 2017 with an annual growth of 4.2 percent and an outstanding amount of MAD257.2 billion (US$27.3 billion). The financing of real estate developers has especially benefited from this turnaround, rising from -4.6 percent in 2016 with outstanding loans of MAD55.5billion (US$5.9 billion) to +8.7 percent in 2017, with outstanding loans of MAD60.3billion (US$6.4 billion).On the other hand, housing loans have slowed down, as they went from 5.2 percent growth in 2016 with outstanding loans of MAD188.7 billion (US$20.1 billion) to 3.6 percent in 2017 with outstanding loans of MAD195.4 billion (US$20.8 billion).
In addition, a steady decline in mortgage lending rates has been observed in Morocco over the past five years. From 2012 to 2017, rates went from six percent to five percent on average.
Partnerships between banks and the government (GoM) make lending more accessible to middle and low income families, through the establishment of mortgage guarantee funds. FOGARIM stands for “Fonds de Garantie pour les Revenus Irréguliers et Modestes,” or “Guarantee Fund for Irregular and Low Incomes.” Launched in 2004, FOGARIM guarantees 70 percent of a mortgage loan made to a household with an informal income for the purchase of a unit worth less than MAD250 000 (US$26 596). Monthly instalments are capped at MAD1750, around US$186 (upper income threshold) and 40 percent of the household’s income (lower threshold). Another guarantee programme, FOGALOGE, targets moderate income civil servants, middle class independent workers and non-resident Moroccans buying or building houses up to about MAD one million (US$106382) in value.
The figures for 2017 show a decline in the number of the funds’ beneficiaries, which was limited to 11 650 for FOGARIM and 5 129 for FOGALOGE, compared to 12 709 and 5 676 respectively in 2016. On the other hand, the granted amounts have almost stagnated to stand out at MAD1.9 billion (US$202 million) for the FOGARIM and MAD1.4 billion (US$ 149 million) for the FOGALOGE.
FOGARIM is open to all banks in theory, but two of them grant more than 80 percent of all FOGARIM loans.While FOGARIM has not been entirely successful at convincing banks to go downmarket and at extending access to housing finance to those with irregular income, it represents a significant improvement compared to the pre-FOGARIM period.
Growth in the microfinance sector has been rapid in Morocco since the Microfinance Act was passed in 1999. Microfinance institutions (MFIs) provide loans for the development of income-generating enterprises (lending to microenterprises accounted for 90 percent of the total) and for housing purchase or construction, as well as for connections to basic utilities. In 2016, loans granted by MFIs to customers totalled a gross outstanding amount of MAD6.4 billion (US$681 million) and the number of beneficiaries reached 900 000.
A mortgage securitisation framework exists in Morocco since 1999 but its use has been limited, with only four issuances. The framework was revised in 2008, but besides making securitisation structures more flexible, it did not foster its usage for housing finance.
 BAM (2016). Rapport annuel 2016. http://www.bkam.ma/Supervision-bancaire/Indicateurs-et-publications/Rapport-annuel-sur-la-supervision-bancaire(Accessed 12 July 2018).
 CEIC (2018). Morocco non-performing loans ratio. https://www.ceicdata.com/en/indicator/morocco/non-performing-loans-ratio (Accessed 12 July 2018).
 BAM (2016). Rapport annuel 2016. Pg.13.
 Le Matin (201 8). L’offre enrichie par la Mourabaha immobilière. 11 Feb 2018. https://lematin.ma/journal/2018/loffre-enrichie-mourabaha-immobiliere/287005.html (Accessed 10 Sept 2018).
Bloomberg (2018).”Morocco adopts more flexible exchange”. https://www.bloomberg.com/news/articles/2018-01-12/morocco-adopting-more-flexible-exchange-rate-to-boost-standing (Accessed 12 July 2018).
 Challenge (2017).Bank Al Maghrib change de statut. 14 July 2017. http://www.challenge.ma/bank-al-maghrib-change-de-statut-86346/
 BAM (2018).
 Direction du Trésor et des Finances Extérieures (DTFE) (2017). Note de conjoncture premiers résultats 2017,
https://www.finances.gov.ma/. (Assessed 12 July 2018). Pg.37.
 Hassler (2011). Housing and real estate finance in ddle East and North Africa countries. http://siteresources.worldbank.org/INTMNAREGTOPPOVRED/Resources/MENAFlagshipHousingFinance.pdf (Accessed 10 Sept 2018).
 Centre for Affordable Housing Finance in Africa (2016). Case Study 1 | The FOGARIM: A Housing Loan Guarantee for the Informally Employed. http://housingfinanceafrica.org/documents/the-fogarim-a-housing-loan-guarantee-for-the-informally-employed/ (Accessed 20 July 2017).
 BAM (2016). Rapport annuel 2016. Pg.52.
Affordability remains an important challenge for housing in Morocco, a country where disparities remain high: the income Gini coefficient was 39.5 percent in 2014.
Morocco’s minimum wage is MAD3 000 (US$319) a month in the public sector, MAD2 570 (US$273) a month in the private sector and MAD 69 (US$7) a day for agricultural workers. Morocco’s minimum wage was last changed on 1st July 2015.
The average annual income per capita in Morocco increased, between 2001 and 2014, from about MAD11 000 (US$1 170) to MAD19 000 (US$2 021), marking an average growth of five percent a year.
The Moroccan government defines two types of affordable housing units, both commonly called “social” housing and differentiated by their maximum price: the first one “Low Real Estate Value – Faible Valeur ImmobilièreTotale (FVIT) – programme” was created by the 2008 Finance Act with a capped price of MAD140 000 (about US$14 893) and dwellings covering a surface area of between 50m² and 60m². The programme targets individuals who earn less than twice the minimum wage.
The second type of social housing was initiated under the 2010 Finance Act with a capped price of MAD250 000 excluding VAT (approximately US$26 595). The covered surface area is between 50m² to 80m² and no maximum income is required to purchase these housing units.
The 2013 Finance Act has introduced the middle income housing programme, which is defined as housing units ranging from 80m2 to 150m2 and selling at maximum price of MAD6000 (US$638) per square metre excluding taxes. This type of housing is aimed at people earning up to US$2 068 a month.
To stimulate the development of social housing, the GoM offers private developers tax incentives.The total fiscal subsidy over the period 2008-2017 for the FVIT programme is estimated at MAD656 million (US$70 million) and MAD23.6 billion (US$ 2.5 billion) for the MAD250 000 housing programme.
For the MAD250 000 housing programme, the GoM also provides private developers with non-monetary subsidies in the form of supply of State private land at less than market value, provision of trunk infrastructure at less than market price, rezoning of agricultural land and/or up-zoning of urban land. Home buyers also benefit from GoM financial aid in the form of payment of the VAT amount (approximately MAD40 000 – US$4 255).
Given the different subsidies, the MAD250 000 housing programme is popular among private real estate developers: over the period 2010-2017, the number of agreements signed between GoM and private real estate developers totalled 1070 agreements for 1 603 565 housing units.However, the FVIT programme is neglected by private real estate developers because of their low margins on this product: over the period 2008-2017, only 43 agreements have been signed for a total of 33 621 housing units. The middle class housing programme is also neglected by private real estate developers given the lack of tax incentives on this product (tax incentives are provided to home buyers). Given the lack of middle class programmes and absence of income cap requirements, the middle class turns towards the MAD250 000 housing programmes that are mainly targeting more disadvantaged Moroccans.
 Min wage org (2018). Moroccan minimum wage 2018. https://www.minimum-wage.org/international/morocco (Accessed 12 July 2018).
 HCP. Introduction de Monsieur Ahmed LAHLIMI ALAMI, Haut Commissaire au Plan, à la présentation des résultats de L’enquêtenationale sur la consommation et les dépenses des ménages au Maroc.
 MHPV (2018). Etude d’évaluation du programme FVIT de MAD 140,000.
 MHPV (2018). Etude d’évaluation du programme de logements sociaux à MAD 250,000.
 MHPV (2018). ‘Etude d’évaluation du programme FVIT de MAD 140,000’.
In 2004, the housing stock amounted to 8.86 million housing units in Morocco, of which 69.8 percent was in urban areas and 30.2 percent in rural areas.
In urban areas, 65 percent of urban households (average size 4.2 persons) occupied a house of the modern Moroccan type “Maison Marocaine Moderne – MMM”. Only 17.5 percent of urban households occupied apartment-building units.
Moreover, 61.9 percent of urban households own their houses against 27.3 percent renting.Housing ownership is mainly done through self-development. To access home ownership, Moroccans rely heavily on their own funds rather than bank loans.
The housing shortage in 2002 was estimated at 1.2 million units and has been reduced to 400 000 units in 2017 through the implementation of the different social housing programmes (FVIT and MAD250 000 housing programmes).. Since 2000, over two million social housing units have been built. Housing demand has been increasing by 150 000 units every year, while annual housing production is only around 100000 units.
The MAD250 000 housing programme supplies 45 808 housing units annually, which represent 33.9 percent of the total national housing supply. Over the period 2010-2017, the total number of achieved social housing units totalled 366 462 units (61.5 percent of the authorised units).
On the other hand, the FVIT programmes supplies annually only 2 855 housing units, which represent 2.1 percent of the total national housing supply. Over the period 2008-2017, the total number of FVIT housing units achieved totalled 28 549 (65 percent of the authorised units).
The Villes sans Bidonvilles programme (VSB, or “cities without slums”) started in 2004 in order to eliminate slums throughout Morocco, as they were perceived as a breeding ground for terrorism. The programme has succeeded at providing better living conditions to more than 277 583 households (1.4 million persons). Over the 89 targeted cities, 58 cities have so far been declared free of slums.
Government policy through its different housing programmes (VSB, FVIT, MAD250 000 programmes and others) has not only increased the quantity of available housing but also improved the quality of the stock. In 2014, the share of Moroccan households with access to electricity and running water reached 91.6 percent and 73 percent respectively.
Since 2004, the government has started establishing new master-planned suburbs and cities to better channel further population growth. Consequently, the GoM launched in 2004 the programme of new cities (developed by Al Omrane, a public developer), which include: i) Tamesna, outside Rabat, is expected to house 250 000 inhabitants; (ii) Tamansourt, located 10km from Marrakech, is designed to accommodate as many as 250 000 people (a five-fold increase from its existing 50 000 residents);(iii) Chrafate, located in Tangier, will include 30 000 housing units and accommodate 150 000 inhabitants for a total investment of MAD17 billion (US$1.8 billion); and (iv) Lahkyayta, located 20km from Casablanca, will accommodate 280 000 inhabitants and include 58 000 housing units. Other major projects include; (i) the eco-city project in Casablanca that is expected to accommodate 300 000 inhabitants and (ii) two sustainable city projects in the region of Rabat-Salé-Kenitra for a total investment of US$2.5 billion each. Saudi-Moroccan real estate developer, GARAN is developing a new urban pole in Bouskoura (250ha) that will include up to 25 000 housing units and accommodate 150 000 people for a total investment of MAD4 billion (Us$425 million).Furthermore, the International Finance Corporation (IFC) has invested more than MAD207 million (about US$22.03 million) in development company Alliances Group to boost affordable housing builds.
New supply of affordable housing tends to be apartment-buildings of typically four levels, in large-scale projects located on government-provisioned land in peripheral locations. In addition to the cost of land, the average middle class self-built house will cost MAD2 800 – 3 000 per m² (US$298 – US$ 319) for a villa, andMAD2 000 – 2 500 per m2 (US$213 – US$266) for a traditional Moroccan home and takes eight months to construct.
 HCP (2014). ‘Habitat au Maroc : Situation du parc de logements et statut d’occupation 2014’,
https://www.hcp.ma/downloads/RGPH-2014_t17441.html(Accessed 12 July 2018).
 HCP (2014). Pg.4.
 HCP (2014). Pg.10.
 MHPV (2018). ‘Etude d’évaluation du programme de logements sociaux à MAD 250,000’.
 MHPV (2018). Etude d’évaluation du programme FVIT de MAD 140,000.
 La Tribune (2018). “Plus de 200.000 famillesontbénéficié du programme « villes sans bidonvilles », selonl’Habitat”. 22 May 2018.https://lnt.ma/plus-de-200-000-familles-ont-beneficie-programme-villes-bidonvilles-selon-lhabitat/ (Accessed 12 July 2018).
 HCP (2014). Pg.12.
 Oxford Business Group (2014). The Report: Morocco 2014.
 MHPV (2018). “Villes et Zones d’Urbanisation Nouvelles”. http://www.mhpv.gov.ma/
 Garan La Vie Eco. “Bouskoura : le moyen standing à partir de 7 000 DH/m2”.http://www.garan.ma/old/uploads/images/presse/9.pdf (Accessed 12 July 2018).
 Alliances Développement Immobilier. http://www.alliances.co.ma/images/publications-financieres/14-00256-Note_dInfo3-14.pdf
In Morocco the registration of land rights is optional. Two systems of land registration exist: a formal and relatively sophisticated land market maintained by the Land Registry and found predominantly in urban areas, and a traditional system maintained by local leaders. Approximately 30 percent of the land in Morocco (almost all in urban areas) is registered under the formal system.The country has made significant progress in streamlining its registration process. According the World Bank, it takes approximately six procedures, 22 days and costs 6.4 percent of the property value to register a property.
According to the “National Housing Demand Survey” of 2015, the national housing demand is estimated at 1 572 893 housing units of which 87 percent is in the urban area (1 359 788 housing units).The demand for housing units accounts for 1 300 000 against demand of 271 100 for land plots (to be used to build mainly MMM).The rental demand is only 13 percent (175 298). For apartments and MMM, the area demanded ranges between 50 and 100 m² with an average number of three to four rooms.
In 2017, the real estate price index registered an increase of five percent (compared to an increase of 1.3 percent in 2016) due to an increase of 4.9 percent for residential properties and 5.3 percent for land. However, the volume of transactions dropped by 7.6 percent after an 8.4 percent increase in 2016, including a decline of 8.7 percent in sales of residential properties and 4.8 percent drop in sales of land.
 Chef du Gouvernement (2015). Rapport de synthèse sur l’état des lieux du secteur foncier.
http://www.agadirinvest.com/ (Accessed 12 July 2018).
 USAID. “Morocco: Property Rights and Resource Governance”. https://land-links.org/wp-content/uploads/2016/09/USAID_Land_Tenure_Morocco_Profile.pdf (Accessed 10 Sept 2018).
 World Bank (2018). Doing Business Indicators 2018.http://www.doingbusiness.org/data/exploreeconomies/morocco (Accessed 12 July 2018).
 BAM (2017). Communiqué du Comité des établissements de Crédit relatif à l’agrément pour l’exercice de l’activité bancaire participative.
Policy and Regulation
Policies that directly or indirectly have an impact on affordable housing include:
a) Constitution of 1996, which guarantees private property rights;
b) Strategie Nationale de Developpement Urbain that placesemphasis on the creation of regional growth poles and competitive cities while prompting social cohesion and the efficient use of resources;
c) Finance Act 2008/2012, which introduced a new social housing programme known as FVIT programme: price capped at MAD140 000(US$14 894), covered surface between 50m2 and 60m2and targeted at individuals who earn less than twice the minimum wage;
d) Finance Act 2010/2012 that redefined the social housing programme as a dwelling for a primary residence with a covered area between 50m2 and 80m2 and a selling price not exceeding MAD250 000 (US$26 596), VAT excluded. This programme is targeting all socio-professional categories without any special income requirement;
e) Finance Act 2013/2014, which introduced the middle income housing programme: covered area between 80m2 and 150m2 and the sale price per square meter of MAD6 000 (US$638) VAT excluded;
f) Establishment of a real estate price index (REPI) in 2010 in order to monitor price volatility in the property market;
g) Enactment of a banking law (n°103-12) in 2014 that introduced the participative banks; and
h) Introduction of a new law (n°67-12) in 2014 to improve the contractual relations between landlords and tenants.
Over the longer term, Morocco’s economic prospects are among the most promising in the Middle East and North Africa region. The country has a young and growing population, an improving business environment, and is well-placed to serve as a manufacturing hub for exporters to Europe and rapidly-growing economies in Sub-Saharan Africa.
While the real estate and construction sectors are currently experiencing a slower period, demand for affordable housing is still high, particularly among the low and middle income population. This demand, coupled with government led initiatives and incentives, could continue to present opportunities for investors. Besides, middle class and rental housing are good opportunities but the GoM needs to introduce new measures (ex. tax incentives) to boost these two segments.
The Minister of Housing has already announced several housing programmes to be implemented by 2021 in order to boost supply and further reduce the gap between supply and demand.Furthermore, although slow to develop, covered bonds remains a significant innovation for Morocco, opening up the market for longer and more affordable housing finance.
Aujourd’hui le Maroc. Nabil Benabdellah partage ses aspirations à l’horizon 2021.http://aujourdhui.ma/economie/immobilier/nabil-benabdellah-partage-ses-aspirations-a-lhorizon-2021 (Accessed 20 July 2017).