Morocco government apply brakes on rising property prices
Morocco has already carved a niche for itself as a new property investment hotspot. But recently property prices in Morocco have increased significantly. Salheddine Ibrahimi, a school headmaster, told Magharebia that he is trying to purchase an apartment in the centre of Rabat but his income is not sufficient to get one and the property prices increase every year considerably. So finally he decided to continue renting till government has found a way to stop this price increase.
Economics professor Mohamed Saidi has cited the imbalance between supply and demand and so Property prices are soaring in Morocco. Due to price increase, the purchasing power of middle class is slowly declining. Recent statistics have shown that in the low to mid-range housing segment the supply has become limited and is exacerbated by substantial rise in property prices. To reduce the soaring property prices Morocco government has started finding remedial measures to improve the conditions for property investors.
Property developer Hicham Slimani has confirmed that the number of apartments currently for sale is in short supply and does not meet necessities of general public either in terms of facilities or price and more over they are costly; prices range between 10,000 to 20,000 dirhams per square meter. Abdessalam El Mesbahi, state secretary for land development, has said that it is the increase in prices is due to pretty wide speculation, along with the increasing number of housing and tourism projects.
The current price rise and increasing inflationary pressures are the biggest concern of the government. Alarmed by the soaring property prices, Housing Minister Ahmed Taoufiq Hejira has decided to interfere and put brakes on this price increase and anti-speculation measures. The minister said that government is in the process of formulating development strategies aimed at generating rapid and efficient ways to reduce property prices, increase the supply and to find and redistribute dormant housing stock. Government plans have met an enthusiastic reception with developers and other private firms and they are working together to find appropriate solution. The minister concluded that the supply-side advances and accelerated addition of new households of nearly 120,000 in urban areas will balance the supply to demand ratio.
Morocco government steps up the pace of building social houses to reach 150,000 units annually and in order to improve the investment climate the government is going to adopt simplified tax system. Moroccans wait with fingers crossed to see the balance between income and property prices.
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