Casablanca Office Prices Record a 1.6% Increase Despite Decline in Transactions.
Bisi Adedun . 2 years ago

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Article Summary: 4th May, Casablanca: Casablanca’s commercial office market recorded an increase in prices despite a decline in transactions according to Estate Intel’s 2023 Casablanca Real Estate Development Pipeline Report. Data from Bank Al Maghrib indicated that the city’s office market recorded a 18.4% Y-o-Y decline in office transactions in the period to December 2022, although prices…
4th May, Casablanca: Casablanca’s commercial office market recorded an increase in prices despite a decline in transactions according to Estate Intel’s 2023 Casablanca Real Estate Development Pipeline Report. Data from Bank Al Maghrib indicated that the city’s office market recorded a 18.4% Y-o-Y decline in office transactions in the period to December 2022, although prices increased marginally by 1.6% during the same duration.
Bisi Adedun, Research Analyst at Estate Intel noted that, “This increase in prices has been underpinned by an evolution of demand towards smaller sized quality offices with occupier preferences expected to be more sophisticated and geared towards Grade A offices such as the Casablanca Finance City Tower.”
Similarly, this evolution of demand has been recorded in other real estate sectors such as retail. The sector has continued to evolve in line with demand to include more integrated solutions such as traditional souks and modern shopping malls. As such, market performance remains balanced in terms of demand and supply despite an active development pipeline. Estate Intel noted that the sector has one of the largest development pipelines accounting for approximately 60% of estimated total stock.Majority (61%) of this, is under construction with only 4% being conceptual. As a result, the sector is set to record some key projects coming on to the market in the near term including Zenata Mall which is scheduled to be the biggest mall in North Africa at approximately 120,000 sqm.
On the other hand, market downsides exist. The hospitality sector, for example, has struggled to bounce back post pandemic. The sector is currently oversupplied with approximately 1,841 keys in the pipeline according to data from W Hospitality group. With occupancies remaining low, STR data noted that Casablanca’s occupancy in the YTD April 2022 was recorded at 29%, supply is expected to outstrip demand ultimately leading to a subdued market despite significant multiple international brands such as Sofitel and Four Seasons entering the market .
Overall, cautious optimism continues to apply in the market as evidenced by the changing landscape of Foreign Direct Investments. Bisi noted, “Foreign direct investments in Real Estate in Morocco have declined by 50% since 2016. This is attributed to a shift in reliance from the European Union to the United States for foreign direct investments. With the United States’ focus primarily on manufacturing, that has inhibited investments into the real estate sector.”
We anticipate this shift in FDI flows will impact the real estate capital market with a likelihood of a slowdown in transactions.”She concluded.
-ENDS
Click here to download the report
For additional information, please contact: [email protected]
Notes to Editors
Estate Intel is the leading independent provider of pan – African real estate research and data that help organizations interacting with the real estate and construction industry make faster and smarter decisions. Headquartered in Lagos, the company advises clients across the continent ranging from individual owners and buyers to major developers, investors and corporate tenants.
For further information about the Company, please visit estateintel.com
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