Casablanca – Morocco’s real estate sector experienced a year of major adjustment in 2025, marked by persistent imbalances between supply and demand, a strong shift toward smaller, more affordable housing units, and the rising importance of long-term rentals. These trends, reflected in data from platforms like Mubawab and supported by broader market indicators, point to a maturing and increasingly structured market, better aligned with household budgets and real-life needs.

Sales market: demand rising, supply under pressure

In 2025, demand for property purchases continued to grow, representing about half of all real estate activity nationwide. Apartments dominated the market, capturing nearly two-thirds of total purchase demand, far exceeding villas and other property types. While buyer interest rose by 5.45% over the year, the volume of available listings fell, particularly for apartments, which saw supply drop by 8.14%.

This imbalance increased pressure on the most affordable market segments. Buyers focused on smaller, more liquid properties, prioritizing affordability and resale potential. Two-bedroom apartments became the standard configuration, while homes between 50 and 80 square meters formed the bulk of market demand. Larger properties exceeding 200 square meters remained marginal, illustrating the mismatch between household budgets and high-end property prices.

Price trends: persistent gaps between cities

Price levels varied significantly across major cities. Rabat remained the most expensive city for apartments, with an average price of $1,800/m², particularly in high-end districts like Souissi and Agdal. Marrakech followed, with an average price of $1,650/m², though the market experienced a slowdown in demand and a 21% rise in apartment supply in 2025.

Casablanca, Morocco’s economic hub, maintained its position as the largest market by volume, with slightly lower prices averaging $1,570/m² and larger average unit sizes of 117 m². Demand increasingly shifted to suburban extensions like Dar Bouazza, now a leading destination for villas.

Tangier and Agadir offered more accessible price points around $1,170/m², while developing high-demand micro-markets, especially in coastal and tourist districts, attracting both buyers and investors.

Housing support programs reshaping supply

Government housing support programs strongly influenced the market in 2025. Properties priced below $72,000 saw exceptional demand, with up to ten times more applicants than available units in some segments. This imbalance encouraged developers to focus on new constructions meeting eligibility criteria, reducing the relative weight of resale units.

The trend supported the development of more standardized, regulated, and transparent housing products, aligning with both public policy objectives and household affordability.

Foreign demand: strong and diversifying

Foreign buyers remained a key driver of Morocco’s real estate market, largely consisting of Moroccans living abroad. France dominated, accounting for 46% of foreign inquiries. Other Western countries—including the United States (7.7%), Belgium (7%), the Netherlands (5.8%), Spain (4.8%), the United Kingdom (4.6%), Germany (3.1%), Canada (2.9%), and Switzerland (2.1%)—continued to provide stable demand.

Gulf countries, such as the UAE, Saudi Arabia, and Qatar, now represent 2.7% of foreign demand, growing in high-end, coastal, and tourism-oriented segments. Foreign buyers favored seaside resorts and upscale suburban areas, including Dar Bouazza, Martil, Asilah, Saïdia, Al Hoceima, Cabo Negro, Harhoura, Sidi Rahal, and M’diq, combining lifestyle appeal with rental income potential.

Rental market: from alternative to structural choice

The rental market became a structural part of the Moroccan real estate sector in 2025, with long-term rentals representing roughly 40% of demand, up from 30% in previous years. Rental demand grew 9.24% during the year, exceeding supply growth of 4.93%. Apartments dominated rental searches (81%), while villas, though smaller in share, saw the fastest growth at 11.9%.

Two-bedroom apartments and functional layouts between 50 and 80 m² became the preferred rental configurations. Geographically, rental demand remained concentrated in major cities: Casablanca led apartment rentals, Rabat remained a key hub (especially Agdal), and Tangier saw sharp rent increases in coastal districts, reflecting its rising attractiveness. Short-term rentals, including platforms like Airbnb, accounted for 10% of rental demand, putting additional pressure on long-term housing supply.

Outlook for 2026: a tighter but more structured market

Looking toward 2026, real estate demand is expected to continue rising, driven by persistent supply shortages and unmet housing needs. Demand will likely focus on properties eligible for housing support, especially those priced below $31,000 and $72,000. Developers are adapting pipelines to these thresholds, which could help absorb some of the accumulated demand, though supply constraints are expected to persist.

The rental market will continue expanding, supported by ongoing barriers to homeownership and growing preference for central, flexible living. This segment is entering a professionalization phase, with new rental management tools, insurance-backed guarantees, and digital platforms enhancing transparency and security.

Foreign investment, after years of strong growth, is expected to stabilize rather than accelerate. Analysts anticipate sustained interest in Marrakech, Tangier, and coastal areas, while monitoring the impact of 2030 infrastructure projects, including new transport lines and emerging urban centers like Zenata and Tamesna.

A market in transition

Morocco’s real estate market in 2025 showed a clear shift toward maturity. Smaller homes, long-term rentals, and targeted housing support became central to market activity, while foreign demand continued to stabilize the sector. The market is transitioning from speculative dynamics to practical, sustainable housing solutions.

As 2026 approaches, the challenge will be reconciling strong demand with limited supply while adapting to household needs, public policy priorities, and evolving investment patterns—defining the trajectory of Morocco’s real estate market for the coming decade.