Casablanca – Morocco’s construction sector is showing promising signs of recovery and growth after years of economic challenges. Recent reports indicate that this resurgence is largely driven by the government’s new investment charter and preparations for significant international events, including the 2030 World Cup, which Morocco will co-host with Spain and Portugal.

The sector, contributing approximately 6% to Morocco’s GDP, has faced several hurdles in recent years, including rising costs for construction materials, difficulties in securing bank financing, and project delays caused by the COVID-19 pandemic and the Russia-Ukraine conflict. Despite these challenges, the sector is now witnessing a notable revival.

Recent data from the High Commission for Planning shows a positive shift in construction activity during the second quarter of 2024, driven by increased building construction, civil engineering projects, and specialized construction activities. This growth is expected to continue into the third quarter, with many contractors anticipating higher employment levels.

Cement sales, a key indicator of construction activity, have increased significantly. By the end of May 2024, sales reached 5.5 million tons, reflecting a 7.31% increase from the previous year. This rise mirrors the broader recovery of the sector following a period of stagnation.

Government investment in infrastructure has also surged, with the value of projects increasing by 42% year-over-year to $6.6 billion. These projects cover various sectors, including water management, ports, roads, and government buildings.

The government has allocated  about $980 million to support middle- and low-income families in purchasing homes, which is expected to further stimulate the residential real estate market.

Looking ahead, projections suggest that cement sales will continue to grow, with an average annual increase of 4.8% over the next five years. By 2028, sales are expected to reach 15.8 million tons, nearing the peak levels seen in 2012.

With positive momentum anticipated to persist until 2030, driven by large-scale infrastructure projects and public-private partnerships, Morocco’s construction sector is poised for a sustained period of growth and stability. This recovery signals a hopeful future for the sector, marking the end of a challenging era and the beginning of a new phase of expansion.