Casablanca – Morocco’s real estate collective investment schemes continued to expand in 2025, attracting substantial capital from banks, insurance companies and other institutional investors as the value of their property holdings exceeded $18 billion. By the end of December, the sector’s net assets had reached approximately $13.8 billion, reflecting the growing role of collective investment vehicles in financing and managing real estate across the country.

Data published by Morocco’s Capital Market Authority (AMMC) show that the total value of properties held by these funds reached approximately $18.1 billion, spread across 2,778 assets. The market comprised 65 real estate collective investment schemes, known by their French acronym OPCIs, managed by eight specialized companies.

The figures underline the increasing importance of these investment vehicles in Morocco’s financial market. They allow institutional investors to gain exposure to real estate without having to purchase and manage every property directly. The funds generate rental income from buildings used for education, healthcare, administration, commercial activities and other purposes, while offering different investment strategies.

The sector recorded particularly strong growth during the final quarter of 2025. Net assets increased from approximately $11.3 billion at the end of September to $13.8 billion at the end of December, a quarterly increase of around $2.5 billion, or 22.2%. Seven new funds were established during the period, bringing the total number of OPCIs to 65, compared with 55 at the end of the first quarter.

This expansion reflects growing interest in professionally managed property portfolios, although the market remains heavily dependent on a relatively small group of institutional investors.

Banks and insurers provide most of the capital

Banks ranked as the largest investors in Moroccan OPCIs at the end of December 2025, accounting for 38% of total net assets. Their holdings reached approximately $5.3 billion.

Insurance companies and pension and social welfare institutions followed closely, representing 36.6% of net assets, equivalent to around $5.1 billion. The relatively small difference between the two groups highlights the importance of both banking and insurance capital in financing collective real estate investment.

The Deposit and Management Fund (CDG) ranked third, with a 9.2% share worth approximately $1.3 billion. Non-financial companies accounted for 7.7%, equivalent to around $1.1 billion, while other financial companies represented 6.4%, or approximately $890 million.

Other investor categories contributed comparatively little. OPCIs investing in other funds of the same type accounted for 1.1% of net assets, while collective investment schemes in transferable securities represented 0.8%. Resident individual investors held just 0.2%, and financing companies had a negligible share.

This distribution illustrates the institutional nature of Morocco’s property investment market. Banks and insurance companies can use OPCIs to diversify their portfolios, gain exposure to rental-generating assets and delegate property management to specialized operators. Pension and social welfare institutions can also incorporate these investments into longer-term asset allocation strategies.

However, the limited participation of individual investors suggests that the market has yet to develop a broad retail investor base. Expanding access could introduce additional sources of capital, although progress would depend on transparent reporting, suitable investment products and clear information about fees, liquidity and investment risks.

Diversified funds account for more than 90% of assets

Morocco’s OPCI market is dominated by funds pursuing diversified investment strategies. At the end of 2025, 53 diversified funds accounted for 91.2% of total net assets, equivalent to approximately $12.6 billion. The remaining 12 specialized funds represented 8.8%, or around $1.2 billion.

Banks were particularly prominent in the diversified segment, holding 40.4% of its net assets, worth approximately $5.1 billion. Insurance companies and pension and social welfare institutions accounted for 37.7%, while the CDG represented 9.5%.

The investor structure differed among specialized funds, which concentrate on particular property categories. Non-financial companies were the leading investors in this segment, accounting for 38.5% of net assets. Insurance companies and pension and social welfare institutions followed with 25.8%, while banks held 13.7%.

The distinction reflects different investment priorities. Diversified funds can distribute capital among several property categories, whereas specialized funds allow investors to focus on particular assets or market segments. The performance of either approach depends on portfolio composition, tenant quality, financing arrangements and the ability of managers to maintain occupancy and control costs.

Diversified OPCIs held average net assets of approximately $238 million per fund, compared with less than $103 million for specialized vehicles. Across the entire sector, average net assets per fund stood at approximately $213 million.

Educational and healthcare buildings dominate property portfolios

The composition of Morocco’s OPCI portfolios reveals a strong concentration in properties used for education, healthcare and administrative services.

Educational and training facilities represented 50.3% of the total value of property holdings at the end of 2025. Healthcare buildings accounted for 18.5%, while administrative properties represented 17.8%. Together, these three categories made up 86.6% of all real estate assets held by the funds.

Other property types represented much smaller shares. Offices accounted for 3.8% of the portfolio, commercial premises for 3.4%, other public facilities for 2.2% and mixed-use properties for 1.2%. Residential properties represented only a marginal portion of the total.

This allocation indicates that Morocco’s collective real estate investment market is primarily focused on institutional and professional properties rather than housing. Educational establishments, healthcare facilities and administrative buildings may offer relatively predictable rental income when supported by long-term leases and financially reliable tenants.

Nevertheless, this concentration exposes funds to risks associated with specific property categories. Changes in lease conditions, operating expenses, tenant solvency and demand for particular buildings can affect rental income. High occupancy rates alone do not guarantee strong returns, as profitability also depends on acquisition prices, financing costs, maintenance expenditure and management fees.

Occupancy rates remain close to 99%

The sector reported an average physical occupancy rate of 98.7% at the end of 2025, while its financial occupancy rate reached 98.6%. These figures indicate that most available property space was occupied and associated with rental income.

Educational and administrative buildings, logistics warehouses and tourism facilities recorded physical occupancy rates of 100%. Healthcare properties followed closely, with an occupancy rate of 99%.

Performance was weaker in some other categories. Offices registered physical occupancy of 86% and financial occupancy of 85%. Residential properties recorded rates of 82% for both indicators, demonstrating that occupancy varies according to property type and use.

Diversified funds reported an average physical occupancy rate of 98.9%, compared with 96.1% for specialized funds. Their financial occupancy rates stood at 98.7% and 96.5%, respectively.

Physical occupancy measures the proportion of available property space that is occupied, while financial occupancy reflects the proportion associated with rental income. Differences can arise when occupied properties do not generate the full expected income under their lease arrangements.

The high reported rates suggest that the sector’s portfolios benefited from substantial use of their assets. Maintaining these levels will depend on tenant retention, lease renewals, property maintenance and the financial health of tenants.

Debt and financing remain important considerations

Despite the scale of their property holdings, OPCIs also rely on borrowing. Total sector debt reached approximately $5.4 billion at the end of 2025.

Debt represented around 29.7% of the total value of the funds’ real estate assets and nearly 39% of their managed net assets. Property accounted for 95.5% of the sector’s investment portfolios, while financial assets represented the remaining 4.5%.

Borrowing can enable funds to acquire additional properties and expand their portfolios, but it also exposes them to refinancing requirements and changes in financing costs. The relationship between rental income, debt servicing and property valuations will therefore remain important in determining future performance.

A sustained rise in borrowing costs could reduce the income available to investors, particularly for funds that need to refinance existing obligations. Conversely, stable rental receipts and effective debt management can support the financial resilience of property portfolios.

The sector’s future development will consequently depend on maintaining a balance between expansion, financing requirements and the capacity of properties to generate sufficient income.

Regional distribution reflects Morocco’s economic centers

The geographical distribution of OPCI property assets highlights the importance of the country’s principal urban and economic regions.

Rabat-Sale-Kenitra accounted for 30% of the overall real estate portfolio, followed by Casablanca-Settat with 20.2%. Fes-Meknes represented 11.2%, Tangier-Tetouan-Al Hoceima accounted for 9.3%, and Marrakech-Safi represented 6.8%.

The distribution among specialized funds was different. Casablanca-Settat held 39.5% of the assets in this segment, followed by Fes-Meknes with 20.1% and Rabat-Sale-Kenitra with 18.7%. The stronger concentration in Casablanca-Settat was accompanied by a greater presence of offices and commercial properties in specialized portfolios.

These patterns reflect differences in regional economic activity and the types of properties targeted by investors. Casablanca-Settat provides a large base of commercial and business tenants, while Rabat-Sale-Kenitra has a significant administrative and institutional presence. Other regions offer opportunities linked to their economic activities, urban development and demand for specialized facilities.

Regional concentration can expose portfolios to changes in local demand and property market conditions. Diversification across regions may help reduce some of these risks, although it cannot eliminate the effects of borrowing costs, tenant defaults or declining asset valuations.

Morocco’s OPCI market has become a significant channel for institutional property investment, with real estate holdings exceeding $18 billion and net assets approaching $14 billion at the end of 2025. Growth in the number of funds and high occupancy rates across major property categories demonstrate the sector’s expanding role.

The next stage of development will depend on whether funds can maintain rental income, manage debt prudently and attract capital beyond the banking and insurance sectors. Broadening the investor base, improving transparency and preserving financial discipline could help strengthen the market’s capacity to finance and manage real estate assets over the coming years.