The Moroccan government is studying the launch of a new model for housing rental aimed at reducing prices by up to 20 percent compared to current market prices. This model allows part of the rental amount to be calculated as installments that enable the tenant to own the housing at the end of the rental contract.
According to the Secretary of State to the Minister of National Land Planning, Urban Development, Housing, and City Policy, Adib Benbrahim, the study is underway and preliminary results will be announced at the end of March 2026.
The official acknowledged the rising real estate prices in Morocco, especially in major cities with high demand such as Tangier and Casablanca.
This rise has been attributed to rapid population growth, internal migration to cities in search of job opportunities and health and educational services, in addition to a shortage of land: land within cities has become scarce and very expensive, raising the costs of construction and real estate.
The Secretary of State also pointed out the speculation in real estate through the entry of investors who purchase properties for resale or commercial rental (including short-term rentals via platforms like Airbnb), which reduces the housing supply intended for permanent residency and drives up prices.
Key Features of the Expected Project
- Rent Reduction: The rental price is approximately 20% lower than market prices, alleviating the immediate burden on families.
- Conversion of Part of the Rent into Ownership Installments: A specified percentage of the monthly payment is calculated as a down payment or installments towards the final ownership price.
- End of Contract = Transfer of Ownership: After the agreed-upon period (often between 10 and 20 years, depending on similar models), the tenant becomes the owner of the property if they comply with the obligations.
This system primarily targets the middle class, which has a regular income but is unable to make a large down payment or bear long-term bank loans with high interest rates.
