Property market in Morocco may avoid affects of international turmoil

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PROPERTY MARKET IN MOROCCO MAY AVOID AFFECTS OF INTERNATIONAL TURMOIL

Tuesday, 06 Jan 2009

According to Moroccan officials, the market for property in Morocco will not be affected by the international financial turmoil. They have declared that the country has dodged the negative affects that have devastated property markets in many other countries around the globe.

The minister of urban planning, housing and land management, Taoufik Hjira, said that his country’s sector is not linked to the international one, and added, “There is high demand here, unlike in Europe. The housing shortage is estimated at five million units. Each year 123,000 new families enter the market. We therefore need to meet current demand and reduce the shortage.”

The president of Morocco property group Addoha, Anas Sefrioui, concurred, saying, “The sector is in good health and is showing no signs of the effects of the crisis, unlike foreign real estate markets.” Mr Sefrioui went on to dismiss the idea that something resembling the sub-prime trend would happen to the Morocco property market, where banks grant loans only to those who can afford to repay them, and the supply of Morocco accommodations is far outstripped by the demand.

Low-income Moroccans who are not up to speed on the situation are eagerly waiting for property prices to fall due to the current slowdown, which has some experts and analysts concerned about the true resilience of the market for property in Morocco despite the upbeat attitude of many developers. While the Ministry of Housing remains optimistic, spokespersons have said that measures will need to be put in place in order to avert possible problems arising. According to Hjira, this may include reforms to local governance, urban planning and how many players are in the market. He also recognised the possibility of a further downturn occurring, with the rise of the cost of raw materials and other business-related services, as well as a decrease in purchases.