Home » Business » Morocco. Real estate transactions fell by almost half in the second quarter

Morocco. Real estate transactions fell by almost half in the second quarter

The real estate asset price index (IPAI) has been declining quarterly and year on year, Bank Al Maghrib recently reported.

According to data published by the central bank and the National Agency for Land Conservation, Cadastre and Cartography (ANCFCC), quarter on quarter, the IPAI fell 3.3%, covering decreases of 3 , 8% for residential prices, 3% for land prices and 0.9% for those of goods for professional use.

The volume of transactions “recorded a decline of 42.8%, reflecting the decline in sales of all categories, ie 38.2% for residential, 53.7% for land and 54.2% for land. goods for professional use ”, noted the bank in a note retracing the overall trend of the real estate market during the second quarter of 2020.

As a reminder, in the first quarter of 2020, the IPAI fell by 1.6%, after the regressions of 1.8% for residential prices, 1.1% for those of land and 3.3% for those goods for professional use. While the volume of transactions fell by 31.2%, reflecting drops in sales for all categories, i.e. 32.9% for residential, 27.2% for land and 25.6% for goods for professional use.

It should be noted that in the second quarter of 2020, residential prices fell by 3.8%, reflecting declines in all categories of assets with rates of 3.7% for apartments, of 5.1% for apartments. houses and 0.8% for villas.

In its note, BAM adds that the volume of transactions “fell by 38.2%, the result of sales of apartments by 37.2%, houses by 59% and villas by 17.9%”.

Analyzing the evolution of land during the same period, the central bank also noted a decrease in land prices of 3% and a decline in transactions of 53.7%.

According to the same source, “the price index of goods for professional use fell by 0.9% from one quarter to another, covering a decrease of 1.5% in prices of commercial premises and an increase 1.4% of those in offices ”.

The central bank goes on to point out that the volume of transactions has, for its part, fallen by 54.2%, the result of declines of 54.4% in sales of commercial premises and 52.9% of those of offices.

On a year-over-year basis, the same figures show that “prices fell 3.3%, with declines of 4% for residential assets, 2.7% for land and 1.3% for buildings. goods for professional use, ”said Bank Al Maghrib.

In its publication, it also noted the decrease in the level of the number of transactions of 56.1% compared to the same quarter of last year.

As explained by BAM analysts, this variation is “the result of a decline of 55.3% for residential, 59.1% for land and 57.2% for goods for professional use”.

By way of comparison, in the first quarter of 2020, prices had fallen by 1.4%, year-on-year, with decreases of 1.5% for residential assets, 1.2% for land and 2 % for goods for professional use.

As for transactions, their number fell by 29.5%, the result of sales of residential sales by 30.6%, land by 28.7% and goods for professional use by 22.3%, had indicated BAM in a previous note.

It should be noted that, on a year-over-year basis, residential prices depreciated by 4% in the second quarter, in connection with the falls of 3.7% in apartment prices, 6.7% for houses and 3.1% for villas.

For their part, sales fell 55.3%, with declines of 54.9% for apartments, 66.6% for houses and 44.5% for villas, noted the central bank.

In terms of land, it appears that “year-on-year, prices fell by 2.7%. Likewise, the number of transactions fell by 59.1%, ”the same source noted in its publication.

Still on a year-over-year basis, the figures studied show a decline in the prices of goods for professional use of 1.3%. This decline reflects a decline of 1.9% and an increase of 2.5% observed respectively in commercial premises and office prices.

“As regards transactions, they fell by 57.2%, with decreases of 56.4% of sales relating to commercial premises and 61.1 of those of offices,” said the bank.

According to the trend of the real estate market by city, quarter on quarter, there was a decline in the price indices at the level of Rabat (5.9%), Casablanca (2.5%), Marrakech (3%) and Tangier (6.5%).

Alain Bouithy

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