Morocco realty firms try to make up for time lost

(2 Aug 2020) LEAD IN:
The Moroccan real estate sector is being revived after projects were halted for months because of the virus lockdown.  

STORY-LINE:  
The real estate sector is a pillar of Morocco's economy.
It contributes to more than 14% of the gross domestic product  and employs more than one million people according to the ministry of housing.
But since March, the turnover of this sector has decreased by 65%, says the ministry.
The pandemic and ensuing lockdown measures halted more than 90% of construction projects and real estate transactions decreased by 31.2%, according to Al Omrane real estate group.
"This is primarily due to the fear of citizens and the beneficiaries of the projects, because they had problems travelling to the group's headquarters to acquire apartments or land and also because companies and their workers stopped working, they preferred to spend the quarantine period in their homes," explains Tayeb Daoudi, from the real estate group.
Moroccans residing abroad, who are key clients, had also stopped buying, he said.
But in recent weeks, with the easing of restrictions, developers and contractors have been trying to catch up with what has been lost.
"We tried to manage the return to work with the same speed and the same pace of work as before," says an engineer and developer.
"We have not reached our goal yet, but thank God, we are trying to respect the advice of the health ministry and at the same time continue to work at the same pace of normal days," he adds.
The Morocccan housing ministry has pleaded in favor of accelerating the completion of real estate projects but within a strict compliance of sanitary measures.
An amended finance bill for the 2020 fiscal year provides for a 6 months extension of the deadlines relating to social housing construction programs.
The housing ministry is also offering incentives such as a reduction in registration fees.
Real estate companies are hopeful.
"With the housing ministry, we have developed an action plan to make a comeback, that has enabled us to return 70 to 75% of the sites to work in a normal way and also the return of workers," says Daoudi.
But the future remains uncertain.
On July 26, the Moroccan authorities took the decision to ban movement in and out of 8 cities, namely Tangier, Tetouan, Fez, Meknes, Casablanca, Berrechid, Settat and Marrakech, because of a recent resurgence in the number of infection cases.

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