Morocco consumer credit is record high
Those considering buying property in Morocco could be interested to hear the high mortgage maturities and low interest rates which suggest the North African nation is in a period of affluence.
According to recent reports from Morocco’s Central Bank, the amount of mortgage loans outstanding increased by a whopping 47% through June, to 125.9 billion dirhams ($16.3 billion), and consumer credit rose to 28% to 22.7 billion dirhams. The outstanding loan amount in Morocco grew 29% overall to an overwhelming 479.3 billion dirhams.
Industry analysts believe that this is due to the macroeconomic stability, with inflation and interest rates coming down improving labour conditions and price stability. The domestic side of the Moroccan economy is picking up nicely and is becoming an engine for growth. Banks offer interest rates as low as 4.5% which has enabled more buyers to enter the market and take advantage of the low rates. Morocco “remains the most attractive destination for investors”, owing to its economy which grew an annual 7% in the first quarter of this year, more than double the 3% growth experienced in the same time period last year.
As there is no major inflation problems in the short or medium term, since monetary and fiscal disciplines are expected to be maintained, property investment in Morocco proves to be lucrative. Investors rush to take advantage of the financial incentives that Moroccan banks are offering and could bring high returns over the long-term it has been reported recently.
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