How the development of new infrastructures is transforming real estate in Morocco
Jul 22, 2024
Casablanca medina cityscape
Discover how Morocco is being transformed by ambitious infrastructure projects. These developments not only stimulate the local economy but also create more attractive and accessible living environments for everyone.
This transformation has certainly helped Morocco become the number one tourist destination in Africa and rank in the top 20 countries in 2023 according to UN Tourism, further enhancing its appeal to investors.
These successes reinforce the idea that modern infrastructures are catalyzing the Moroccan real estate market, highlighting key projects and their transformative impacts.
The transportation revolution: Highways and high-speed trains
Major Road Networks
Morocco's highway network has significantly expanded over the past decades. With over 1,800 kilometers of highways, the country now boasts a network that connects its major cities.
For example, the highway connecting Casablanca to Marrakech has not only reduced travel time but also stimulated real estate development along this corridor. Areas that were once rural are now seeing the emergence of new residential and commercial neighborhoods.
For investors, this means increased opportunities to develop residential and commercial projects in rapidly growing areas.
"The expansion of the highway and railway networks in Morocco has not only facilitated travel but also energized the regional real estate market." - ONCF
Public Transportation
With several lines serving the city's main districts, Casablanca's tramway has reduced travel times, decreased congestion, and improved quality of life. By making previously inaccessible neighborhoods highly attractive to residents and investors, these tramway-served areas are experiencing a rise in real estate demand and property prices.
For real estate purchases, this represents an opportunity to develop projects in areas well-served by public transportation.
Similar projects exist, such as the Rabat-Salé Tramway and the introduction of Trambus in Agadir.
High-Speed Rail Lines
The inauguration of the high-speed rail line connecting Casablanca to Tangier in 2018 marked a turning point for rail transport in Morocco. This line connects the two cities in just two hours, compared to nearly five hours previously.
This improvement has boosted the real estate market in the cities served by the LGV, making these areas more attractive to investors and residents. Future property owners can take advantage of this increased connectivity to develop residential and commercial projects in strategic areas.
Airport Modernization: An Opening to the World
Morocco has invested heavily in modernizing its airports.
For example, Mohammed V Airport in Casablanca has been expanded and modernized to accommodate a growing number of passengers. This modernization has a direct impact on the real estate market, particularly in areas close to airports, presenting opportunities to develop residential and commercial projects and attracting an international clientele. Proximity to the airport can increase property values and attract expatriates and traveling professionals.
Industrial and Logistics Zones as Growth Engines
Industrial Zones
The development of modern industrial zones is another key factor in the transformation of Morocco's real estate market. Areas like Tanger Med and Casablanca Finance City attract international companies, creating increased demand for quality housing for employees. These industrial zones also drive the development of additional services and infrastructure, such as schools, shopping centers, and recreational facilities.
For the real estate market, this means opportunities to develop residential and commercial projects in high-demand areas.
Logistics Platforms
Logistics platforms, such as those developed around the ports of Tangier and Casablanca, play a crucial role in facilitating international trade. These infrastructures attract logistics and transportation companies, thereby increasing the demand for industrial and commercial spaces.
As a result, the surrounding areas see an increase in property values and a rapid expansion of development projects.
Urban Development Projects: Towards More Sustainable Cities
Plan Azur
The Plan Azur is an ambitious project aimed at developing several tourist areas along the Atlantic coast. This project includes the creation of seaside resorts, hotel complexes, and luxury residences. Plan Azur exemplifies a unique opportunity for real estate investors to participate in large-scale projects in attractive tourist areas. For instance, the Taghazout Bay seaside resort is a model of successful development that has attracted both national and international investors.
Eco-Cities
Morocco is also committed to developing sustainable cities, known as eco-cities. These projects aim to create environmentally friendly urban environments with modern infrastructure and green spaces. Real estate players, both individual and professional, can take advantage of this trend by developing sustainable real estate projects that meet the expectations of modern consumers. For example, the city of Zenata, located near Casablanca, is an eco-city project attracting an increasing number of investors. To learn more about the development of sustainable cities, read our latest article dedicated to the boom in ecological housing in Morocco.
Infrastructure for the 2030 World Cup: A Development Catalyst
FIFA World Cup 2030 Infrastructure Development
Morocco plans to build its largest stadium in Benslimane, in the northern suburbs of Casablanca, and to modernize six existing stadiums in Casablanca, Rabat, Marrakech, Agadir, Fès, and Tangier.
These works, spread over several years, will require a total investment of 14 to 15.5 billion dirhams (1.3 to 1.4 billion euros). Besides the stadiums, the investments will include strengthening the transport network, hospitality industry, and digital communications, particularly the transition to 5G.
This event's impact is expected to offer unique opportunities for real estate investment, as well as in the construction, banking, and tourism sectors. Tourism revenues are projected to reach 120 billion dirhams (just over 11 billion euros) by 2030, boosting the local economy and increasing real estate demand in the affected areas.
A Favorable Investment Environment
The development of new infrastructures in Morocco is profoundly transforming the real estate market. Urban development projects offer numerous opportunities for investors looking to enter the Moroccan real estate market.
These projects not only improve connectivity and quality of life but also stimulate economic growth and attract foreign investments.
Highways, high-speed rail lines, airport modernization, the development of industrial and logistics zones, and urban development projects create unique opportunities for investors and a better living environment for residents.
In addition to the potential appreciation of real estate assets linked to infrastructure improvements and economic dynamism, several incentive schemes are in place to encourage investment:
- Tax Exemptions: For investors committed to developing real estate projects as part of urban planning schemes.
- One-Stop Shop: To simplify administrative procedures and facilitate land access for real estate developers.
- Support Programs: For first-time buyers and renters, such as the Housing Guarantee Fund (FOGALOQ) and the "Cities Without Slums" program.
These incentives, combined with a growing real estate market, make Morocco an attractive destination for international investors.
Leveraging Market Dynamics
Understanding these dynamics is crucial to taking advantage of the opportunities offered by this expanding market and preparing for your next real estate purchase.
At Housing Place, we understand the importance of these transformations and are committed to providing you with the best real estate opportunities tailored to your needs. Start your search today on our platform and connect with our real estate agents in just one click!
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