Casablanca – Morocco’s construction sector entered 2026 facing contrasting trends, with large infrastructure projects continuing to support activity while private residential construction and smaller building projects showed signs of slowing momentum. Recent cement sales data, widely regarded as a key indicator of construction activity, point to an increasingly uneven market in which public investment is sustaining demand despite softer conditions in several private-sector segments.

According to figures released by the Ministry of National Territory Planning, Urban Planning, Housing and City Policy, cement sales totaled 5.73 million tonnes during the first five months of 2026, representing a decline of 5.3% compared with the same period a year earlier. The figures suggest that overall construction activity remains significant, but that growth is becoming more concentrated in specific areas of the sector.

The slowdown became particularly evident in May, when cement sales fell by 20.6% year on year to approximately 1.21 million tonnes. The decline followed a strong performance in April, when sales had surged by nearly 32%, highlighting the volatility that has characterized the market in recent months.

Public investment continues to support activity

Despite the overall decline in cement consumption, several segments linked to major construction works continued to record growth. Sales destined for ready-mix concrete production increased by 4.6% during the first five months of the year, reaching more than 1.58 million tonnes. Demand associated with infrastructure projects also rose by 1.9% to more than 405,000 tonnes.

These figures reflect the continued implementation of public investment programs, transportation projects, urban development initiatives and other large-scale infrastructure works underway across the country. Preparations linked to major international sporting events and long-term development plans have also contributed to maintaining activity in selected segments of the construction market.

The resilience of infrastructure-related demand has helped limit the impact of weaker activity elsewhere in the sector, preventing a sharper contraction in overall cement consumption.

Residential construction faces pressure

While major projects remain active, the picture is less favorable for smaller private developments and self-build housing projects.

The distribution segment, which primarily serves individual homebuilders, small contractors and local construction sites, recorded the largest decline among the major categories. Sales through distribution channels fell by 9.6% during the January-May period, totaling 2.99 million tonnes.

At the same time, cement deliveries destined for prefabricated concrete products dropped by 12.7% to approximately 549,000 tonnes. These declines suggest that activity has weakened in segments closely linked to residential construction and smaller-scale real estate developments.

Market observers note that household purchasing power, financing conditions and construction costs continue to influence private investment decisions. Although inflationary pressures have eased compared with previous years, many households remain cautious regarding major construction and housing expenditures.

The building segment itself remained relatively stable, recording only a marginal decline of 0.08% to 179,058 tonnes. This suggests that the slowdown is concentrated in specific market segments rather than affecting all construction activities equally.

Cement sales remain a key economic indicator

Cement consumption is widely monitored in Morocco because of its strong connection to the performance of construction, real estate and public works activities. Changes in sales volumes often provide an early indication of shifts in investment, housing development and infrastructure spending.

The latest data reveal a market operating at two different speeds. On one hand, large public projects continue to generate demand and support economic activity. On the other, private residential construction appears to be growing more slowly, reflecting a more cautious environment among households and smaller investors.

This divergence highlights the increasing importance of public investment as a driver of growth within the construction sector. Major infrastructure programs have become an essential source of stability for contractors, suppliers and building-material producers during periods of weaker private demand.

Outlook for the remainder of 2026

The performance of Morocco’s construction sector during the second half of the year will depend on several factors, including the pace of public infrastructure spending, access to financing, real estate market conditions and the evolution of household demand.

Ongoing investments in transportation networks, water infrastructure, urban development and public facilities are expected to continue supporting activity. At the same time, any improvement in financing conditions or renewed confidence among households could help stimulate residential construction and private development projects.

For now, the latest figures indicate that Morocco’s construction sector remains active but increasingly segmented. Large-scale infrastructure and strategic development projects continue to provide momentum, while smaller private construction projects face a more challenging environment. The balance between these two trends will likely determine the sector’s overall trajectory during the remainder of 2026 and beyond.