Impact of Covid on Real Estate in Morocco

Published on and written by Cyril Jarnias

Since the onset of the COVID-19 pandemic, the Moroccan real estate market has undergone significant transformations, revealing new priorities among potential buyers. Between the search for more open spaces and areas offering the possibility of setting up a home office, as well as the growing importance of outdoor spaces, buyer demands have clearly shifted toward homes that better accommodate a more flexible and wellness-oriented lifestyle.

This upheaval has not only impacted purchasing trends but also redefined the real estate supply across the country, prompting developers to adapt their designs to meet these unprecedented aspirations.

Impact of Remote Work on Moroccan Buyer Preferences

Remote work has profoundly transformed the Moroccan real estate market, altering buyer expectations and restructuring the available supply. This shift, accelerated by the 2020 health crisis, continues to influence sector dynamics in 2025.

The COVID-19 crisis served as a catalyst for the adoption of remote work in Morocco. Before the pandemic, only 20% of real estate agencies had implemented remote work, while 61% resorted to partial unemployment and 19% suspended their activities. This forced transition not only changed the working methods of industry professionals but also transformed buyer search criteria.

Buyer preferences have evolved significantly, with increased demand for properties offering dedicated workspaces. The market has responded to this new reality, as evidenced by the evolution of the commercial real estate supply, which has quadrupled for purchases and doubled for rentals.

CriterionBefore Remote WorkAfter Remote Work
Proximity to officePrioritySecondary
Dedicated workspaceOptionalEssential
Living spaceModerateLarger
LocationCentral urbanPeripheral/Semi-urban
Internet connectionStandardHigh-speed essential

The impact on prices is also notable, with an average increase of 3.7% in 2024 compared to 2023, reaching 12,100 dirhams per square meter. This increase reflects the growing demand for properties suited to new work arrangements.

Peripheral areas of major cities have gained attractiveness, offering better value for money and larger spaces. Meanwhile, traditional business districts have seen their dynamics shift. In Casablanca, neighborhoods like Maârif-extension and Racine-extension maintain high prices (30,000 and 25,000 dirhams per m² respectively), as does Rabat Agdal (26,000 dirhams per m²).

The reduction in office occupancy rates, a direct consequence of the expansion of remote work and staff rotation programs, has pushed companies to reconsider their real estate investments. This trend has created a climate of economic uncertainty, prompting many companies to delay their relocation projects and reassess the cost of their premises, which represents the second largest expense after salaries.

The evolution of the Moroccan real estate market also takes place within a broader context of economic development, stimulated by major events such as co-hosting the 2030 World Cup and the 2025 Africa Cup of Nations. These international events position Morocco as a major attraction hub and further energize the real estate market, offering varied opportunities for investors.

  • Outdoor spaces (terraces, gardens) have become major assets
  • Digital infrastructure (fiber optics, network coverage) is now a decisive criterion
  • Soundproofing and space configuration are more highly valued to promote concentration

Good to know:

In response to remote work, Moroccan buyers show a growing preference for properties offering functional workspaces and quiet environments conducive to concentration. According to recent studies, demand for properties with a garden or balcony has also increased, as has interest in peripheral and semi-urban areas, where space is more generous and costs are often lower. This change is accompanied by a redefinition of priorities, with buyers now favoring amenities that facilitate home life while reducing the need for daily commutes, thus influencing the real estate market and accentuating disparities between urban centers and suburbs.

Although it is still too early to draw definitive conclusions about the long-term effects of remote work on commercial real estate in Morocco, current trends suggest a lasting transformation of the market, with significant economic and social implications for the entire sector.

New Home Selection Criteria Post-COVID

The Moroccan real estate market has undergone significant transformations following the COVID-19 pandemic, profoundly altering buyer selection criteria. This period has led to a reassessment of residential priorities, with particular attention paid to space, comfort, and functionality.

The health crisis caused a marked decline in real estate transactions, as evidenced by the first quarter of 2025 with a 15.2% drop in total transactions. The residential sector was particularly hard hit, with a 14.5% decline, affecting both apartments (-14.5%) and houses (-15.3%). Commercial properties experienced an even more drastic fall of 41% between certain periods.

Despite this slowdown in transactions, prices remained relatively stable, suggesting market resilience in the face of economic disruptions. This stability is partly explained by sustained demand for certain types of properties that meet new post-pandemic needs.

Real Estate SegmentTransaction Change (Q1 2025)
Residential overall-14.5%
Apartments-14.5%
Houses-15.3%
Commercial-41%

New Buyer Preferences

  • Larger spaces allowing for home office setup
  • Homes with access to outdoor spaces (gardens, terraces)
  • Properties located in less densely populated areas

Morocco’s sustained economic growth, with an average annual GDP rate above 4%, has helped maintain a certain dynamism in the sector despite the challenges. The increase in Moroccans’ purchasing power has continued to encourage real estate investment, particularly in segments adapted to new expectations.

Certain cities like Marrakech, Tangier, and Agadir stand out for their growing attractiveness. Tangier benefits from its industrialization dynamics and developing infrastructure, attracting investors and buyers. Agadir, driven by a thriving tourism sector, records positive growth in both transactions and prices.

Government incentive measures, particularly housing subsidies, have stimulated interest in new properties, especially those priced under 300,000 dirhams. The mid-range segment (300,000 to 700,000 dirhams) is also experiencing strong demand.

For 2025, experts anticipate a recovery in the growth of the new residential real estate market, driven by strong demand and continued incentive measures, despite the decline observed in the first quarter.

Good to know:

The COVID-19 pandemic has redefined the priorities of real estate buyers in Morocco, steering their choices toward homes offering more comfort and functionality. Demand for larger spaces, including gardens and home offices, has significantly increased. According to a recent study, approximately 60% of buyers now seek homes with good internet connectivity and optimal air quality, especially in cities like Casablanca and Rabat. Additionally, interest in suburbs has surged, with families favoring proximity to essential amenities and quieter environments compared to urban centers. These changes are also materializing through increased scrutiny of neighborhood digital infrastructure and renewed attention to housing sustainability.

Transformation of the Real Estate Market in Morocco

The Transformation of the Moroccan Real Estate Market Following the COVID-19 Pandemic

The COVID-19 pandemic has profoundly disrupted the Moroccan real estate sector, leading to significant changes in purchasing behaviors and consumer preferences.

Evolution of Buyer Preferences

The health crisis has considerably altered the search criteria of Moroccan buyers. There is growing demand for more spacious homes, particularly houses and villas offering additional spaces for remote work, exercise, and outdoor activities. This trend reflects a reassessment of residential priorities, where comfort and quality of life now take precedence over proximity to urban centers.

Prized Criteria Before the PandemicPrized Criteria After the Pandemic
Proximity to workplaceOutdoor space (garden, terrace)
Small spaces in city centerLarger spaces with dedicated home office room
Accessibility to urban servicesQuiet, airy environment
Competitive priceHousing quality and comfort

Economic Impact on the Real Estate Market

The Moroccan real estate sector, already weakened before the crisis, bore the full brunt of the pandemic’s economic consequences:

  • Cessation of visits during the mandatory lockdown
  • Significant slowdown in transactions and ongoing construction projects
  • Decline in mortgage loan applications
  • Decrease in income generated from rental investment

The market came to a virtual standstill during the lockdown period, with real estate agencies forced to close their offices, leading to a sharp drop in their revenues. This situation created a climate of uncertainty that prompted many potential buyers to postpone their acquisition plans.

“The real estate sector is a sector already in crisis. Mainly due to the housing deficit that has already been filled. 2020 will be an even more difficult year for the sector.”

Psychological Factors and Solvency

The economic uncertainty generated by the health crisis had a psychological impact on purchasing decisions. Many households preferred to wait for an improvement in the situation before committing to the acquisition of a property. This caution is explained in particular by:

  • Fears related to job stability
  • Decline in income due to partial unemployment
  • Uncertainty about the evolution of real estate prices

Industry experts estimated that households would prefer to wait at least until 2021 before acquiring real estate, which put downward pressure on prices, particularly for sellers eager to close a deal.

Demand for Affordable Housing

The crisis also highlighted the importance of adequate and affordable housing. There is increased demand for homes in an accessible price range (3,500 to 5,000 MAD/m²), particularly in peripheral municipalities like Fahs-Anjra and M’diq. This trend reflects a shift in preferences toward less densely populated areas offering better value for money.

The Moroccan real estate market is thus going through a major transition period, where the consequences of the pandemic continue to reshape buyer expectations and the functioning of the sector. Real estate professionals must adapt to these new realities to effectively meet emerging consumer needs.

Good to know:

The COVID-19 pandemic has considerably altered the preferences of real estate buyers in Morocco, accentuating demand for larger living spaces and properties with gardens, as remote work becomes common. Less urbanized regions are attracting more interest, with a notable increase in interest in rural areas due to their peaceful setting and lower cost, which influences the decline in transaction rates in major cities. Economically, although Moroccan real estate has seen a price drop in metropolitan areas, smaller towns have recorded stabilization or a slight increase. Digitalization, with the rise of virtual tours, has transformed buying and selling processes, simplifying transactions. A recent study indicates that the market recorded a 20% increase in the use of digital tools in 2022, according to experts who predict this trend will continue with a lasting post-COVID impact.

Growing Demand for Multifunctional Living Spaces

The COVID-19 pandemic has profoundly transformed the expectations of real estate buyers in Morocco, sparking a marked preference for multifunctional living spaces adapted to new daily uses. This evolution has translated into an increased search for flexibility in home layouts, in order to integrate remote work, online studies, and wellness-related activities at home.

New Requirements and Expectations of Moroccan Buyers:

  • Creation of modular spaces that can simultaneously serve as an office, study room, or area dedicated to physical activity.
  • Growing demand for technological equipment (high-speed internet connection, multiple outlets) facilitating remote work and distance learning.
  • Increased need for natural light and access to an outdoor space (balcony or terrace), perceived as essential for improving quality of life during lockdown.
  • Importance placed on acoustic calm allowing for concentration and productivity.

Recent Statistics and Market Observations:

A study conducted in early 2021 on a representative sample of Moroccan households highlights that the health crisis accelerated the digitalization of domestic lifestyles. Households adapted their habits by investing in connected household appliances, thus optimizing their spaces to meet new professional and educational constraints. This transformation was particularly evident in urban families composed mainly of working individuals.

Main ExpectationObserved Evolution Since 2020
Home office/remote work spaceStrong increase
Internet connectionWidespread demand
ModularityPrioritized in real estate choice
Outdoor spacesBecame a key criterion for more buyers

Potential Impacts on Designers and Real Estate Developers:

Professionals are now compelled:

  • To integrate a multifunctional logic from the architectural design stage, with modular spaces easily convertible according to family needs.
  • To rethink the interior organization around a versatile core capable of accommodating different activities without compromising comfort or privacy.
  • To adapt their marketing offering in order to highlight these new functionalities as decisive arguments for buyers.

Lasting Influence on Architecture and Urban Planning:

In the long term, this shift could lead to:

  • A generalization of open plans, but also a return to certain removable partitions favoring temporary privacy.
  • Increased development of shared spaces within residences themselves (connected common rooms or collaborative gardens).

Post-pandemic expectations could durably transform the Moroccan architectural landscape, making spatial flexibility, technological adaptability, and environmental quality essential in any new real estate project.

Good to know:

Since the COVID-19 pandemic, real estate buyers in Morocco increasingly favor multifunctional living spaces adapted to the new realities of home life. Approximately 60% of buyers now seek homes capable of accommodating dedicated areas for remote work, online studies, or personal wellness, reflecting a growing need for flexibility and versatility. This trend is pushing designers and real estate developers to rethink interior layouts, integrating modular solutions that allow spaces to be easily rearranged according to the changing needs of occupants. Architects and urban planners must also consider these expectations for future developments, with potential implications on the urban plan, such as the integration of green spaces or even more multifunctional common areas, in order to meet increased demands for quality of life and residential functionality.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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