Performance across Casablanca’s real estate market remained relatively stable throughout the first half (H1) of 2019 as new and planned projects continue to positively impact investor sentiment across all sectors, JLL in a new real estate market report.

According to the International Monetary Fund (IMF), Morocco’s real GDP growth rate, which was 3.1 per cent in 2018, will increase to 3.2 per cent in 2019 and reach 4.5 per cent by 2024, led primarily by a rapidly improving business environment and infrastructural base, as well as increased investment activities.

“As part of the government’s efforts to continue attracting investors to the country, earlier this year we saw the official launch of the Moroccan real estate collective investment schemes (OPCI), which is expected to create significant portfolios in Morocco in the coming years, and to boost demand in the real estate sector overall,” said Craig Plumb, head of Research, JLL Mena.

The office market remained stable during the first half of the year. As more commercial space is expected to enter the market by the end of 2020, the sector will likely witness a natural correction in rents, with landlords offering more flexible lease terms and generous rent-free periods to retain tenants.

The retail sector continued to witness expansion and modernization with the development of new shopping malls and retails parks in the outskirts of the city. Mall operators are constantly introducing tailored, innovative concepts to enrich the experience for customers and retailers, in a bid to achieve higher footfalls.

The hotel sector saw subdued performance in H1 2019, with the total number of overnight hotel stays recording a marginal decline of 1 per cent. The government’s focus on improving tourism sites and the infrastructure of the city, as well as the entry of new international developments in the market, is expected to positively impact the sector in the long run.

Average rents in Casablanca’s industrial sector remained stable, as it continues to attract occupiers and investors due to its well-established infrastructure. The first half of 2019 saw the signing of additional investment agreements with leading players from automotive and aeronautics industries, which is expected to drive the sector moving forward. – TradeArabia News Service