The direct housing assistance program has generated significant interest, resulting in high demand since its implementation. However, this demand faces several obstacles, including the slowdown in the construction sector.
Building affordable housing that meets the program’s criteria, especially those priced at 300,000 dirhams or less, is challenging in the current economic context, especially in urban areas where land costs are exorbitant. To better understand this issue, Hespress FR contacted a real estate developer, who highlighted the major challenges facing the sector.
The professional first mentioned that a noticeable slowdown in activity is evident through several significant indicators in the construction sector. These indicators include the revenue of the National Agency for Land Conservation, which reflects the number of new titles issued and transactions conducted. A decrease of at least 50%, sometimes more depending on the region, is observed, signaling an alarming trend.
The second revealing indicator, according to our source, lies in the municipalities’ revenue from building permit fees, as well as the revenue of urban agencies for processing applications and issuing building permits. These figures clearly indicate a substantial slowdown in activity, despite the implementation of the new direct housing assistance program.
“This program aims to provide assistance for housing priced below 300,000 dirhams, as well as for housing priced between 300,000 and 700,000 dirhams. However, despite this initiative, the sector seems to be hesitant. The current economic conditions make it difficult to produce housing at 300,000 dirhams. This difficulty is partly due to the rising prices of construction materials and significant land price increases,” he emphasized.
The professional also highlighted the ministry’s data revealing that 70% to 75% of the requests registered on the dedicated platform are for this category of affordable housing, and producing this type of housing in a short amount of time is unrealistic.
Furthermore, the promoter stated, “In comparison with the 250,000 dirhams housing program launched in 2010, which generated immediate enthusiasm, there is a similar lack of excitement for the current program. This decrease in activity is therefore explained by the complexity and challenges encountered in implementing this initiative.”
Moreover, the administration does not seem to be favorable to investment and is excessively strict in enforcing the existing regulations. Delays and malfunctions in the management of building permits within urban agencies are observed, contradicting the ministry’s policy.
“These obstacles hinder the smooth flow of activities, and their duration cannot be predicted. The recent press conference held by the Order of Architects of Casablanca highlighted these various issues, which affect not only Casablanca but the entire national territory,” he emphasized, stressing the need to simplify procedures to truly facilitate investment.