Casablanca – Morocco’s real estate sector recorded stronger commercial activity during the first half of 2026, supported by rising demand for housing, the expansion of direct housing assistance, progress in resettlement programs and the launch of new residential projects. Major listed developers reported higher revenue and presales, while the number of units under construction also increased during the period.

The improvement comes after a period in which the property market faced pressure from high construction costs, changing household purchasing power and uncertainty over demand. The latest figures suggest that government housing support and institutional programs are contributing to a recovery in activity, particularly among developers operating in segments eligible for public assistance.

Combined revenue at the three major listed property developers — Addoha, Alliances and Residences Dar Saada — increased by around 8.5% during the first six months of 2026 to more than $300 million. This represented an increase of about $24 million compared with the same period of 2025.

The direct housing assistance program has become an important source of support for the market. More than 105,000 people had benefited from the program by early June, giving eligible households additional financial capacity to purchase homes. The program has also encouraged developers to adapt their projects to the price ranges and conditions required to qualify for the assistance.

The impact of the program is particularly relevant for developers focused on affordable and middle-income housing. For these companies, stronger demand can help accelerate the sale of completed units and reduce the amount of inventory remaining on the market.

Resettlement programs are providing another source of demand. In Casablanca, around 6,000 units had been completed under a resettlement initiative, representing approximately 60% of the properties allocated to the program. Such projects are becoming an increasingly important component of developers’ activity alongside conventional sales to individual buyers.

The sector is also benefiting from broader urban development and investment linked to Morocco’s preparations for the 2030 FIFA World Cup. Housing requirements, infrastructure projects and urban expansion are creating opportunities for developers in several cities. The effect, however, varies according to location, housing category and the purchasing power of potential buyers.

Addoha recorded an 11% increase in presales during the first half of 2026. The company registered 2,539 presales during the second quarter, representing growth of more than 20% compared with the same period a year earlier.

The number of units under construction reached 23,791 at the end of June, compared with 19,773 a year earlier. These projects represented potential revenue of close to $2.1 billion, providing the company with a substantial pipeline of future activity.

Addoha has also continued expanding its operations in West Africa. The region accounted for 18% of its presales and 35% of units that had entered production. The expansion reflects the efforts of Moroccan developers to diversify their activities and respond to housing demand in markets experiencing rapid urban growth.

Alliances also experienced a recovery during the second quarter after a weaker start to the year. Revenue fell by 14% during the first quarter to around $63 million but subsequently increased by 30% during the second quarter to approximately $83 million.

The recovery brought its first-half revenue to around $145 million, representing growth of 6.5% from the same period a year earlier. Presales reached 3,267 units during the first six months.

Residences Dar Saada recorded the fastest revenue growth among the three companies. Its revenue increased by 25% to approximately $21 million. Presales reached 16,168 units, largely supported by agreements connected to a housing program in Marrakech.

The program covers 15,400 units, with slightly more than half expected to be developed through Residences Dar Saada X. The project illustrates the growing importance of large institutional housing programs for developers seeking greater visibility over future construction and sales.

The increase in presales is particularly important for the real estate sector because it provides developers with greater visibility over future demand. However, presales do not immediately translate into recognized revenue or profits. Financial results depend on construction progress, completion and delivery of the units.

This distinction is becoming increasingly important as developers evaluate new projects. Companies are paying closer attention to actual demand, household purchasing power, selling prices, construction costs and the amount of unsold inventory before committing to new developments.

The approach reflects a shift toward more demand-based construction. Rather than expanding supply solely on the basis of expected market growth, developers are increasingly attempting to match the number and type of new units with purchasing capacity in specific locations.

Controlling inventory is particularly important for property companies because unsold housing ties up capital and can increase financing costs. Faster sales and deliveries, by contrast, can improve cash generation and allow developers to reinvest in new projects.

The recovery in demand nevertheless comes with several challenges. Construction and financing costs remain important factors in determining developers’ margins. A rise in sales volumes does not necessarily produce the same increase in profits if the cost of land, materials, labor or borrowing rises at the same time.

Debt management is another consideration. Large residential projects require significant capital before developers receive the full proceeds from sales. Companies therefore need to balance construction schedules, presales, deliveries and financing requirements.

The performance of real estate shares has also diverged from the improvement in commercial activity. The sector index covering real estate investment and development companies declined by around 7.3% since the beginning of 2026.

The difference between operating performance and share-market performance reflects the fact that investors are looking beyond sales figures. They are also assessing whether stronger activity can translate into sustainable profits, healthier cash flows and manageable debt.

The half-year financial results covering the period through June 30 are therefore particularly important for the sector. They should provide a clearer picture of how the increase in presales and construction activity is affecting revenue recognition, margins, profitability and cash generation.

For the housing market itself, the continuation of direct government assistance could remain an important factor during the second half of the year. The longer-term impact will depend on the number of households able to benefit from the program, the availability of qualifying homes and developers’ ability to supply properties at prices compatible with household purchasing power.

Resettlement initiatives could provide an additional source of activity, while urban expansion and projects connected with preparations for the 2030 World Cup could support construction demand in selected cities.

Morocco’s real estate sector thus entered the second half of 2026 with stronger sales activity and a larger pipeline of housing projects. The combined performance of the major listed developers shows that demand has improved, while public housing support and institutional programs have created additional channels for sales.

The next phase will depend on whether this stronger commercial activity can be sustained and converted into completed projects, recognized revenue, healthy margins and stronger cash generation. For developers, the balance between demand, prices, construction costs, financing and inventory will remain central to the performance of the sector.