Construction & Real Estate
From The Report: Morocco 2013
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The construction sector achieved 4.2% growth in 2011 and has consistently contributed around 5% to 6% of the GDP over the last eight years. Public spending on infrastructure has created opportunities for both local and foreign firms in the last decade. From 2003 to 2012, the government invested nearly Dh180bn (€16m) in basic infrastructure in an effort to improve capacity and efficiency. Foreign firms hailing from the EU – especially Spain – as well as Turkey, South Korea and China have been drawn to Morocco to create large-scale, mixed-use projects. While building has slowed in some sectors as a result of the global economic downturn, strong demand for construction in housing, public services, industry and energy should continue to stimulate sector activity in the medium term. Indeed, a number of high-value commercial real estate projects have continued to attract international investment. Recent developments include efforts initiated in 2011 to create 11 new cities, a number of which are located outside of Casablanca and Rabat. The government is looking to public-private partnerships to support urban regeneration and the construction of low-income housing. In the short term, efforts to incentivise social housing construction and urban planning programmes meant to absorb sub-standard housing will continue to drive much real estate sector activity.

This chapter includes an interview with Mohammed Fassi-Fehri, Director-General, CDG Development.

Articles from this Chapter

Overview

Building up: Growth in the industrial, energy and commercial sectors should continue to drive activity
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A look at Morocco’s landscape, dotted by worksites in both urban and rural areas, demonstrates the vitality of the construction and public works sector. While building has slowed in some sectors as a result of the global economic downturn, strong demand for construction in housing, public services, industry and energy should continue to stimulate sector activity in the medium term. Public spending on infrastructure especially has created opportunities for both local and foreign firms in the…

Interview

OBG talks to Mohammed Fassi-Fehri, Director-General, CDG Development
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Interview: Mohammed Fassi-Fehri Why have real estate developers shown only limited interest in investing in the mid-range segment? MOHAMMAED FASSI-FEHRI: This situation resulted from the many opportunities that were available in the social housing segment, encouraged by fiscal and other incentives. Social housing needs were immense and incentives guaranteed interest; however, opportunities are now being exhausted. Developers must now look elsewhere, but many are awaiting incentive packages. So…

Analysis

Raising roofs: A multi-pronged approach should boost social housing stock in the medium term
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As in many emerging economies, public spending on infrastructure and social programmes has stimulated Morocco’s construction industry, despite the global economic downturn that has greatly affected the sector in both the US and Europe. Social housing programmes have been a driving force in the industry a trend that is set to continue for the foreseeable future. The Ministry of Housing and Urban Planning (MHUP) estimated that Morocco’s housing deficit reached 840,000 units by the end of 2011.…

Overview

Change in the winds: The establishment of new cities will focus on closing the social housing gap
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Despite the difficult global economic context, Morocco’s real estate sector is performing well, having recovered from a drop five years ago. Activity is down from its peak levels – recorded in 2007-08 – but the sector continues to attract a number of international players. Social housing has proven to be the driving force behind the industry in recent years, and fiscal incentives introduced by the Ministry of Housing and Urban Planning (MHUP) should continue to spur housing construction…

Analysis

In the world’s eye: Domestic commercial projects draw international support
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Prior to the beginning of the global economic downturn in 2008, Morocco’s real estate market drew considerable investment from multinational firms for the development of high-end villas, hotels, resorts and leisure facilities, aimed at a primarily foreign audience. Foreign direct investment in the real estate sector peaked at Dh9.15bn (€813m) in 2008, but since then, a number of foreign developers have pulled out of tourism-related projects in order to reduce their exposure to risk and focus…