Is 2025 a good time to buy real estate in Morocco?

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Everything you need to know is included in our Morocco Republic Property Pack

Are you thinking of investing in property in the land of Moorish Architecture? Are you wondering whether now is the right time to make a move?

Market timing is a subject where people have different perspectives. Your Moroccan colleague may suggest that it's currently a good time to buy property, but your friend residing in Rabat might suggest waiting for a couple more months.

At SandsOfWealth, when we create articles or update our pack of documents related to the real estate market in Morocco, we trust facts and data, not opinions or rumors.

We have gone through official reports and government website statistics in great detail. As a result, we have created a reliable database filled with valuable information. Here's what we found, which can help you decide whether it's the right time to buy real estate in Morocco.

Let's delve in!

How is the property market in Morocco these days?

Morocco is, today, a relatively stable country

Neutral

If you want to invest in properties, prioritize stability as it minimizes legal, regulatory, and political risks. It is an information you need as a foreigner who might buy a property in Morocco.

These days, Morocco is experiencing a notable degree of stability. The last Fragile State Index reported for this country is 68.8, which is an acceptable number.

Morocco's relative stability today can be attributed to its constitutional monarchy, which has allowed for a degree of political continuity and gradual reform under King Mohammed VI, fostering a sense of national unity and moderate governance. Additionally, the country's strategic economic diversification efforts, including investments in renewable energy and infrastructure, have bolstered economic resilience and reduced reliance on volatile sectors.

Let's examine other data now to see if it's the right moment to purchase property in this country.

Morocco will keep growing in the next 5 years

Positive

Before buying a property, take a look at how well the country's economy is doing.

According to the IMF, Morocco will end 2024 with a growth rate of 3.2%, which shows the country is on the right path. For 2025, the experts say 3.3%.

Besides that, the economy will keep growing since Morocco's economy is expected to increase by 14.9% during the next 5 years, resulting in an average GDP growth rate of 3%.

The expected sustainable growth rate in Morocco indicates a stable and growing economy, which can lead to increased demand for real estate as more people and businesses seek properties. This growth can drive property values up over time, offering potential investors the opportunity for good returns on their investments.

In addition, there are other metrics to consider.

Morocco's population is growing but getting poorer

Negative

Population growth and GDP per capita should be on your mind when you're in the market for real estate because:

• a growing population means more people needing homes
• a higher GDP per person means people have more money to spend on housing (which can lead to increased property value over time)

In Morocco, the average GDP per capita has changed by -0.1% over the last 5 years. It's not a good number. However, the Moroccan population is growing (+6% in 5 years).

No high rental yields in Morocco

Neutral

It's time to analyze the rental yields..

It's the annual rental income of a property divided by its price. For example, if a property in Morocco is purchased for 1,000,000 MAD and generates 40,000 MAD in annual rental income, the rental yield would be 4%.

Based on the data provided by Numbeo, rental properties in Morocco promise gross rental yields from 3.1% and 5.8%. You can find a more detailed analysis (by property and areas) in our pack of documents related to the real estate market in Morocco.

It indicates a moderate level of income generation.

Everything you need to know is included in our Morocco Property Pack

In Morocco, expect minimal inflationary effect

Neutral

Simply put, inflation is the phenomenon of rising prices.

It's when your usual tagine dish in Marrakech costs 80 Moroccan dirhams instead of 70 Moroccan dirhams a couple of years ago.

If you're considering investing in a property, high inflation can offer you several advantages:

• Property values have a tendency to increase over time, leading to potential capital appreciation.
• Inflation can result in higher rental rates, thereby increasing the cash flow from the property.
• Inflation reduces the real value of debt, making mortgage payments more affordable.
• Real estate can act as a hedge against inflation, effectively preserving the value of the investment.
• Diversifying your portfolio with real estate provides stability during periods of inflation.
• Tax advantages, such as depreciation deductions, can help offset the impact of inflation.

As per the IMF's forecasts, over the next 5 years, Morocco will have an inflation rate of 1.0%, which gives us an average yearly increase of 0.2%.

This data shows that Morocco is anticipated to experience negligible inflation. Unfortunately, in the absence of inflation, purchasing a property now may not result in substantial price increases or substantial profits in the future.

Is it a good time to buy real estate in Morocco then?

Time to conclude !

2025 is shaping up to be a promising year to invest in property in Morocco, and there are several compelling reasons for this. First off, Morocco is known for its relative stability in a region that can often be unpredictable. This stability provides a solid foundation for economic growth and development, making it an attractive destination for property investment. When you're considering where to put your money, a stable environment is always a key factor, and Morocco offers just that.

Moreover, the Moroccan economy is on an upward trajectory, with an expected growth of 14.9% over the next five years. This translates to an average GDP growth rate of 3% annually, which is quite healthy. A growing economy typically means more jobs, higher incomes, and increased demand for housing and commercial spaces. As more people and businesses look for properties, the value of real estate is likely to rise, offering investors the potential for significant returns.

While the population in Morocco is growing, it's important to note that there is a trend of increasing poverty. This might sound like a downside, but it actually creates a unique opportunity in the rental market. According to data from Numbeo, rental properties in Morocco offer gross rental yields ranging from 3.1% to 5.8%. This means that even if property prices don't skyrocket, you can still earn a decent income from renting out your property, making it a worthwhile investment.

Lastly, Morocco is expected to experience minimal inflationary effects, which is great news for property investors. Inflation can erode the value of your investment, but with low inflation, your property is more likely to retain its value over time. This, combined with the country's stable and growing economy, makes 2025 an ideal time to consider buying property in Morocco. Whether you're looking for a long-term investment or a rental income opportunity, Morocco offers a promising landscape for real estate investors.

We genuinely hope this article has been helpful and informative to you!. If you need to know more, you can check our our pack of documents related to the real estate market in Morocco.

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.