The real estate property market continues to cause concern among Moroccan developers, “notaires” and bankers. Everyone has his or her own explanation, and the word slump is definitely back in circulation. Recently Leconomiste had this to say:
The golden age of real estate is apparently over. In any case, sales have been going south for several months. The euphoria and buying frenzy that usually happens during the summer, which coincides with the arrival of the Moroccans Living Abroad, did not take place this summer. Buyers prefer to postpone their purchases. "Few transactions have taken place because customers are reluctant to engage," reports the Moroccan Federation of real Estate developers (FNPI).
This situation is caused by the wide perception of pending lower prices. Suddenly, everyone would rather wait in the hope of better deals. And the arrival of Ramadan has exacerbated the lethargy. Therefore, several real estate projects have been stalled for several weeks and the pace of housing deliveries has fallen globally by 50%. By itself, Marrakech has some fifty-mothballed projects.
For now, insiders are hoping for a market rebound in October 09. Tthe situation varies from one segment to another and from one city to another. But one thing is sure, the luxury real estate market is the segment most affected nationally as reported by the promoters federation., "The luxury real estate segment has seen a significant slowdown across the country. To date, Marrakech is undoubtedly the city most affected” FNPI reports. For other cities, prices have generally been revised downwards.
This is particularly true in Marrakech, Tangier, Tetouan, Kenitra ... "These towns have important reductions given the volumes of stocks and finished apartments waiting to find a buyer," says a promoter. But the Federation of developers prefers to speak of a "correction". "The market was inflated somewhat in recent years and prices had reached record levels with inadequate purchasing power," said the secretary general of the FNPI. He added, "it is rather a return to normal that would benefits the developers who adjust their prices by taking into account the new circumstances."
This is probably the reason for the sudden abundance of rebates and discounts on homes or villas in many cities of Morocco.
1 comment:
It's the same in many places all over the world. It's a kind of stale mate between buyers and sellers so nothing happens except desperate sellers have to cut their prices.
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