Government reinstated affordable housing incentives in its 2010 budget
Morocco has made impressive headway as it had reinstated affordable housing incentives in its 2010 budget after a building slowdown caused by the global recession and the removal of a tax break for low-income housing developers in 2008. Morocco’s total affordable housing shortage is estimated at 1.2m homes, which is expected to increase by 125,000 annually. Construction on social housing units stalled after the government revoked tax breaks for private developers that were included in the 2008 Finance Act.
Toufik Jhira Housing and Town Plan Minister warned that social housing, which accounts for 70% of the national market, is in a state of crisis. He said that action must be taken before 2010 to save the sector from impending disaster.
According to the British think-thank Oxford Business Group, the Moroccan government has offered affordable housing incentives in its budget. The 2010 Finance Bill will give social housing developers exemptions from a capital gains tax and a cement tax. Social housing is defined by the government as homes sold for less than Dh 200,000 (€18,000) .
The report also point out that “university dormitory developers will also be granted tax incentives.”
Youssef Ben Mansour, chairman of the National Federation of Housing Developers said in a press statement that the incentives given to developers will allow a return of investment to the construction industry, with all that it entails in terms of opening up new construction sites, job creation and sales of building materials. Low-income homebuyers will also benefit from a value-added tax rebate of Dh 40,000 (€3585), up from Dh 30,000 (€2689), and an exemption from registration fees.
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