Casablanca – Morocco’s housing market is facing mounting pressure as rents and property prices continue to rise, particularly in major urban centers. The combined effects of limited housing supply, strong demand, speculative investment, and the rapid expansion of short-term rentals have pushed affordability to the forefront of public debate. In response, the government is preparing a set of regulatory and policy measures aimed at stabilizing the rental market, expanding access to housing, and easing the burden on middle-income households.

According to official statements made before Parliament, the increase in rents and real estate prices reflects a long-standing structural imbalance between supply and demand. Large cities such as Casablanca, Rabat, Tangier, Marrakech, and Fez remain highly attractive due to job opportunities, educational institutions, healthcare services, and infrastructure. This concentration of economic activity has driven sustained demand for housing, while available land within urban boundaries has become increasingly scarce and costly, limiting the pace of new residential construction.

The scarcity of buildable land has had a direct impact on housing costs. Rising land prices increase development expenses, which are ultimately reflected in sale prices and rents. As a result, households seeking accommodation in central or well-connected neighborhoods are facing growing financial pressure, with rent levels absorbing an increasing share of income.

Speculative investment has further intensified these dynamics. A growing number of investors are purchasing residential units with the aim of resale, yield optimization, or commercial exploitation. This practice reduces the number of homes available for long-term residence and contributes to higher benchmark prices across the market. Officials have acknowledged that this trend disproportionately affects tenants, limiting residential stability and weakening purchasing power.

Another major factor reshaping the rental market is the expansion of short-term rentals through digital platforms. The profitability of tourist-oriented accommodation has encouraged many property owners to withdraw their units from the traditional long-term rental market. This shift has reduced the supply of year-round housing for residents and created additional upward pressure on rents.

Authorities have also pointed out that the spread of short-term rentals has often taken place outside the boundaries defined by urban planning regulations, which typically designate specific zones for tourism-related activities. The absence of a clear and enforceable framework has allowed this segment to grow rapidly within residential buildings, altering neighborhood dynamics and exacerbating housing shortages.

At the same time, financing patterns have played a role in reinforcing this trend. Banks have shown a growing preference for funding high-yield real estate projects, including those linked to seasonal rentals. This has facilitated the expansion of short-term accommodation while indirectly constraining the supply of conventional rental housing.

In response to these challenges, the government is preparing a regulatory framework aimed at better controlling short-term rentals. A draft decree is under consideration to define authorized zones, limit the conversion of residential buildings into tourist accommodation, and preserve housing stock for permanent residents. The stated objective is to restore balance between tourism development and the right to housing in urban areas.

Beyond regulation, public authorities are also exploring new policy instruments to improve affordability. A national study is currently underway to introduce a model of rent-controlled housing priced approximately 20% below prevailing market rates. This scheme is designed to target middle-income households, which face increasing difficulty accessing both rental housing and home ownership due to high prices and strict bank financing conditions.

The proposed model includes an innovative savings mechanism under which part of the rent paid by tenants would be treated as accumulated savings. Over a period of five to six years, these amounts could be converted into a down payment toward the purchase of the housing unit. The approach is intended to create a gradual transition from renting to ownership, offering a more flexible alternative to traditional mortgage financing.

Parallel to these efforts, the government continues to implement long-term housing programs aimed at improving living conditions. As of the end of 2025, more than 382,000 families had benefited from the “Cities Without Slums” program, with 62 cities and urban centers officially declared free of slums. Under the current policy approach, the focus has shifted from simple relocation toward more sustainable resettlement solutions.

Within the framework of the 2024–2028 housing program, data for 120,000 households have been updated nationwide. The authorities have emphasized the involvement of private developers in delivering housing units at controlled prices, with some beneficiary contributions remaining relatively limited. Monitoring mechanisms are also planned to prevent the re-emergence of informal settlements.

Despite these initiatives, official figures reveal persistent inefficiencies in housing utilization. Approximately 1.1 million housing units remain vacant, while an additional 1.3 million are classified as secondary or seasonal residences, many of them located in high-demand urban areas. This paradox underscores the complexity of the housing challenge and highlights the need for more targeted regulatory and fiscal tools.

Taken together, the planned regulation of short-term rentals, the introduction of rent-controlled housing, and the continuation of social housing programs signal a broader shift in public policy. Authorities are seeking to move from reactive measures toward a more structured and balanced housing market, capable of meeting the needs of residents while accommodating investment and tourism activity.

Whether these measures will be sufficient to curb rent inflation and restore affordability remains uncertain. However, the government’s acknowledgment of the structural roots of the crisis and its willingness to intervene on multiple fronts mark a significant development in Morocco’s housing policy at a time when access to decent and affordable housing has become one of the most pressing challenges for urban households.