The Property Price Index (IPAI) recorded a 0.8% year-on-year rise in the first quarter of 2024, according to reports from Bank Al-Maghrib (BAM) and the National Land Registry, Cadastre, and Cartography Agency (ANCFCC).
This increase reflects price hikes in residential properties (0.7%) and land (1.2%), while prices for commercial properties remained stable compared to Q1 2023, BAM and ANCFCC noted in their quarterly report on the overall real estate market trends for early 2024.
Mixed performance in transactions
However, the number of transactions saw a decline of 3.1%. This included a 3.1% decrease in residential property sales and a significant 14.8% drop in commercial property transactions. In contrast, land sales experienced a 3.6% uptick.
Residential property breakdown
Residential property prices increased by 0.7% compared to the same period last year. This includes a 0.8% rise in apartment prices and a slight 0.1% increase in house prices. However, villa prices dropped by 0.2%.
Transactions in the residential sector fell by 3.1%. The breakdown is as follows: apartment sales declined by 2.2%, house sales saw a significant drop of 13.7%, and villa sales plummeted by 21.6%.
Land market insights
Land prices rose by 1.2%, reflecting a positive trend in this segment. Moreover, the number of transactions for land increased by 3.6%, indicating a growing interest in land purchases.
Commercial property trends
The commercial property sector presented a mixed picture. Overall, prices remained stable, but a closer look reveals a 1.5% decrease in retail space prices, juxtaposed with a notable 6.5% increase in office space prices.
The number of transactions for commercial properties declined by 14.8%, driven by a 16.3% drop in retail space sales and a 7.5% decrease in office sales.
City-specific trends
- Rabat: Prices increased by 1%.
- Casablanca: Prices rose by 0.4%.
- Tangier: Prices remained unchanged.
- Marrakech: Prices decreased by 0.2%.
These trends highlight a mixed but generally stable real estate market in Morocco, with variations depending on property type and location.
