In 2025, Morocco's real estate market experienced a significant rise in property prices, with Rabat leading the charge in price increases and Marrakech showcasing remarkable growth in transaction volumes. This information was highlighted in the annual report by Bank Al-Maghrib, which was presented to King Mohammed VI on Tuesday. The central bank observed a moderate upward trend in property prices, which rose by 0.6% overall, although variations in performance were evident among the country’s key urban centers.
Rabat Achieves Highest Property Price Growth
Rabat stood out with the most substantial increase in property prices, reporting a notable rise of 3.6% compared to the previous year. In contrast, Fez lagged behind with the smallest increase at a mere 0.2%, illustrating the disparate growth rates across Morocco's main cities. The report indicated that property prices rose across all categories: residential properties and urban land saw a 0.9% increase, while commercial real estate prices climbed by 0.3%. Despite the rising prices, the market exhibited robust momentum, indicating sustained demand and keen investor interest.
Marrakech emerged as the most vibrant market, witnessing an impressive surge in property transactions, which increased by 29.9% in 2025. Conversely, Agadir and Kenitra experienced declines in sales volume, while transaction activity flourished in most other urban areas. After a substantial rise of 19.6% in 2024, overall property transactions grew by 6.6% last year, propelled by increases of 10.3% in land transactions, 12.4% in commercial real estate deals, and 4.9% in residential sales.
Accommodative Monetary Policy and Its Effects
Bank Al-Maghrib’s report also emphasized the influence of its accommodative monetary policy, designed to bolster economic activity and facilitate financing conditions. The banking sector's liquidity improved in 2025, with liquidity needs averaging 128.7 billion dirhams ($13.9 billion), a positive shift attributed partly to a voluntary tax regularization program aimed at reducing cash in circulation outside of the banking system. In March, Bank Al-Maghrib reduced its benchmark interest rate to 2.25% to further stimulate growth and lessen borrowing costs. Additionally, the central bank continued to address banks’ liquidity needs through weekly interventions averaging nearly 140 billion dirhams. However, projections indicate that banks’ liquidity requirements will gradually rise, reaching approximately 143 billion dirhams by the end of 2026.
The report also shed light on household borrowing, noting a slowdown in demand for household credit amid more cautious spending habits. While overall bank lending to the non-financial sector, which includes households and companies, expanded by 4.8% in 2025, consumer lending growth weakened as household consumption only increased by 1.2%, a drop from 2.9% the previous year. Mortgage lending also showed signs of deceleration, suggesting many families are delaying significant purchasing decisions due to escalating property prices and long-term affordability concerns. The report indicated that potential buyers seem to be biding their time, waiting for price stabilization or an improvement in their purchasing power before committing to long-term home loans.
Despite the slowdown in borrowing and shifting economic conditions, the ratio of non-performing loans remained relatively stable, hovering just above 8% of total lending. While the volume of troubled loans exceeded 100 billion dirhams across the banking sector, Bank Al-Maghrib noted that borrowers generally demonstrated resilience in fulfilling their financial obligations. The conclusion drawn from the report is that while bank lending to the non-financial sector continued to grow in 2025, household borrowing for consumption and housing exhibited signs of moderation.
As reported by en.hespress.com.
