Popular neighborhoods, studio prices, apartment sizes… everything you need to know about Casablanca real estate

Apartment sales in Casablanca are currently booming, especially in the city’s central areas. The strong demand for housing, the economic growth of the region and the tourist and cultural appeal of the Moroccan metropolis are all factors that contribute to this dynamic of the real estate market.

LApartment sales in Casablanca are currently very dynamic, especially in the central areas of the city. This trend can be explained by several factors: firstly, Casablanca’s central neighborhoods attract many buyers due to their privileged location. These neighborhoods provide easy access to essential infrastructure and services such as shops, schools, public transport and recreational facilities. In addition, central districts’ proximity to the city’s main economic activity centers makes these areas very popular among real estate investors.

Rage for central areas

MAlik Belekziz, CEO of Agenz explains in this regard: “The recent research on trends in the real estate market in Casablanca, based on information collected by the site agenz.ma, shows clear preferences in the choice of neighborhoods and the type of apartments. Central areas such as Bourgogne West, Racine, Les Hôpitaux and Gauthier account for the lion’s share and represent more than a quarter of the applications. According to the expert, “this strong demand could lead to an increase in prices, despite an assessment that seems moderate in relation to the quality of life offered by these neighborhoods. The craze for living further from urban centres, a result of the pandemic pushing people to live further from work, appears to be waning. Buyers will now look for options in the city center, even if this involves some renovation work, indicating a renewed interest in these well-located neighborhoods. He also draws our attention to the fact that “the CFC sector, despite its privileged location, is not in the TOP 3, undoubtedly due to the very high prices per square meter”.

An observation shared by Yassine Ahdadou, who in turn explains that “middle-class people from Casablanca tend to move to the surrounding areas for a matter of price per square meter and for more tranquility, while expats and young people with good financial level are more likely to look for accommodation in the city center (golden triangle – Gauthier – bd d’Anfa, etc.) areas with all the necessary amenities and where traveling is easier.

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For his part, Hamid Lahlou, managing partner of the Century21 Casa Sud agency, emphasizes that despite the fact that
“the market is not very dynamic for premium housing, there is still an active demand for apartments, mainly mid-range apartments.”

According to this expert, it is the neighborhoods “Ain Diab, Les Princesses, Bourgogne, Maarif, Palmier, Gauthier and Bouskoura that are popular with buyers today”. “They prefer the proximity of workplaces, schools, shopping centers and recreational opportunities (forest/sea)…” he explains.

In addition, the city of Casablanca is an important financial and commercial center, attracting many companies and workers looking for quality housing. This increase in the working population stimulates demand for real estate in central districts, which translates into an increase in the number of apartment sales transactions (see Agenz figures).

Strong demand for the 3 bedrooms

PIn terms of the type of real estate that is most sought after, the Agenz teams’ detailed analysis showed that 3-bedroom apartments are the most sought after.

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In this regard, Malik Belekziz explains: “that three-bedroom apartments in terms of interior layout are very popular and account for almost half of searches. While two-bedroom apartments are also in demand, studios and large apartments with five or more bedrooms are attracting less interest, indicating a preference for mid-sized properties suitable for families. This phenomenon underlines that the real estate market is mainly aimed at people looking for a primary residence, even as rental investments are becoming increasingly popular and widespread.

On Hamid Lahlou’s side, the preference is more likely to be “2-bedroom apartments, followed by studios and thirdly, 3-bedroom apartments”.

Yassine Ahdadou presents another lecture explaining that “people who want to invest prefer studios because of profitability and depreciation, and above all, the demand in this segment is becoming stronger and stronger. Conversely, young couples are often looking for 2-bedroom apartments that are no larger than 100 meters.”

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In this regard, Malik Belekziz also underlines that “investor studios remain the flagship product.

For Belekziz “Despite the abundance of videos on Instagram touting quick wealth through the purchase of various studios, the reality of a rental investment requires in-depth analysis at all stages of its realization and should not be taken lightly.” In this regard, he explains: “As far as the purchase is concerned, it is crucial to accurately evaluate the purchase price and the potential rental to maintain the financial viability of the project. Market-based prices can be checked through platforms such as agenz.ma, and it is advisable to compare listings for similar properties to make realistic rental forecasts and properly assess their profitability. The expected gross profitability should ideally be between 7 and 8%. To estimate your net profitability, you must add the taxes, the co-ownership costs that remain your responsibility and the rental management costs….

Still according to the latter, “for the rental phase, it is essential to carefully study the competitive position of the property (see for example a graph of average studio rental prices per neighborhood) in order to reduce tenant turnover or maximize occupancy rates. rate, especially if the studio is offered for short periods.”

End of studios in Casablanca?
According to experts, rumors are circulating about the cessation of production of studio-only buildings in Casablanca. A situation that has given rise to a lively debate among players in the real estate sector.
For Yassine Ahdadou “the real estate market is in full development, especially after the Covid crisis and the announcement of the Africa Cup and the 2030 World Cup, as well as the change in infrastructure in Casablanca. Demand is increasing and developers are finding it increasingly difficult to find building land.” Given these parameters, the latter believes the studios still have a future
“Fewer and fewer places and land are available and demand is increasing, causing homes to become increasingly smaller.”
For his part, Hamid Lahlou believes that “this is a good thing because this trend towards overproduction of studios will result in a decrease in studio rental yields due to the abundant competition and an increase in the sales price of 2/3 bedrooms . in neighborhoods where studios predominate. In summary, entire neighborhoods will be transformed into dormitories abandoned by families because there are few apartments.”
In turn, other experts believe that this measure would make it possible to diversify the housing supply in Casablanca and meet the growing demand for affordable housing for households.