Casablanca – Morocco’s real estate market showed clear signs of slowdown in the second quarter of 2025, with transaction volumes falling sharply across most sectors despite modest changes in property prices. Data compiled by Bank Al-Maghrib and the National Agency for Land Conservation, Cadastre, and Cartography (ANCFCC) indicate that the overall number of real estate transactions decreased by 10.8% compared to the previous quarter, reflecting a 15.1% drop in residential property sales.

The slowdown was not limited to residential properties. Sales of professional-use and commercial properties fell 13.3%, while land transactions recorded a 6% increase. On an annual basis, the Real Estate Asset Price Index revealed a near-stagnation trend: residential property prices rose by only 0.1%, while land and professional-use property prices fell by 0.3% each.

Transaction volumes showed a more pronounced decline on a year-on-year basis, down 21.2% overall. Residential property sales dropped 25.9%, land transactions fell 3%, and professional property deals decreased 20.9%.

Sector-level analysis

  • Residential properties: Residential prices declined 0.3% quarter-on-quarter, including similar decreases for apartments and houses, while villa prices increased 1.5%. The number of residential transactions fell 15.1%, with apartments down 2.3%, houses down 16.2%, and villas up 23.7%. Year-on-year, residential prices remained almost stable, supported by a 1.6% rise for villas, a slight 0.1% increase for apartments, and stable house prices. Annual transaction volumes fell 25.9%, with villas being the only segment showing growth (11.4%).
  • Land: Land prices decreased slightly by 0.2% during the quarter, while sales grew 6%. Over the year, land prices fell 0.3% alongside a 3% drop in transactions.
  • Professional-use properties: Commercial and office properties saw their index prices decline 0.2% in Q2 2025, reflecting a 0.2% drop for commercial premises and a 1.3% increase for office spaces. Transactions fell 13.3% during the quarter and dropped 20.9% year-on-year, including declines of 22.5% for commercial premises and 13.2% for offices.

City-level trends

  • Rabat: The capital showed a strong price increase of 14%, led by a 24% rise in residential property values, while land fell 2.6% and professional-use property declined 0.5%. Transactions increased 4.3%, including an 8.2% rise in residential deals, offset by a 32.6% fall in land sales and a 6.8% decrease in professional property transactions.
  • Casablanca: The economic hub recorded a 0.5% overall price decline, including -0.3% for residential, -2.9% for land, and -0.8% for professional properties. Transactions fell 13.9%, with residential sales down 13.8%, land sales down 0.2%, and professional property deals down 18.7%.
  • Marrakesh: The city experienced a modest 0.2% rise in prices, driven by small increases in residential (0.1%) and land (0.9%) values, while professional property prices decreased 0.4%. Transactions grew 2.7%, supported by a 13.4% increase in land deals and a 9.9% rise in professional property sales, while residential transactions fell slightly by 0.5%.
  • Tangier: Prices declined 0.5% overall, with residential down 0.1% and land down 2.3%, while professional-use property prices rose 0.8%. Transaction volumes fell sharply by 19%, including declines of 19.2% for residential, 22.5% for land, and 75% for professional properties.

Outlook

The combined data underscores the challenges facing Morocco’s real estate sector. While price changes were generally modest, the sharp decline in transaction volumes across most property types highlights weakened demand and cautious investment behavior. The persistent stagnation raises questions about the measures needed to revitalize the market and restore confidence among investors, developers, and homebuyers alike.