Housing Finance in Morocco


This profile is also available in French here.

To download a PDF version of the full 2023 Morocco country profile, click here.

Morocco has a population of 37 344 787 people, with a large concentration in metropolitan regions. The rural population had fallen from 71% in 1970 to 36% in 2021. As a result, around 9.2% of the urban population lived in slums, informal settlements, or substandard housing. This is due to causes such as climate change, urbanisation, and a scarcity of affordable homes. Despite the efforts of all stakeholders, Morocco faces a 400 000 affordable housing unit shortage.

In 2021, Morocco had an unemployment rate of less than 13% and an inflation rate of 1.4%. This recovery is mostly explained by robust cereal harvests. The country’s flexible exchange rate mechanism, in place for more than three years, has allowed the dirham to strengthen by 1.8% against the US dollar and 5.7% against the euro. These figures have enabled Morocco’s extensive banking sector, which is more advanced than that of the majority of African countries, to maintain an inexpensive interest rate policy.

Following a 4.4% fall in 2020, the number of housing loans recovered by 20.1%. For the year 2021, the average interest rate charged by banks on home loans was 4.24%. Loans backed by the government climbed by 10% after falling by 2.3% in 2020. In 2021, these social loans will total Dhs41.3 billion (US$4 107 123 033). In monetary terms, the gross amount of housing financing in 2021 was Dhs248.4 billion (US$24.702 billion), a 4.5% increase from the previous year.

Housing in Morocco is prohibitively expensive, and this extends beyond property renting. In Casablanca, for example, a new flat in the CS-HH11 area costs Dhs10,000 (about US$994) per m2. These prices include all fixed costs, such as water and power use.

Climate change is having an impact on Morocco. Water scarcity has had a significant influence on agriculture. Climate change is also a major contributor to population shifts from rural to urban areas. The government has created a National Natural Disaster Risk Management Strategy (2021–2030). It has also established a portal to the Integrated Disaster Risk Management and Resilience (FLCN) Program through the Ministry of the Interior.

Utilizing digital tools to better connect real estate developers with their intended market would aid in housing alignment. The state must continue to foster and sustain an environment conducive to economic growth. The inclusion of credit applications and other materials on commercial bank websites enables users to easily access information and should be continued.

Find out more information on the housing finance sector of Morocco, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2023 edition, which has up-to-date profiles for 55 African countries.

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