Moroccan property developers are seeing their costs rise sharply, Hespress reported on 19 October, citing a source within the national federation of real estate developers (FNPI) and industry professionals. Materials such as sand, steel, cement, concrete, glass, marble and bricks have reportedly risen by 25% to 30%. Diesel now costs more than 16 dirhams per litre, pushing up transport and machinery expenses.
Subcontracting has also become more expensive. For social housing, rates have climbed from 2,400 to 2,500 dirhams per square metre to 3,000 to 3,200 dirhams, according to the sector. Developers also point to rising wages, difficulty recruiting and keeping workers, and permit procedures that can take from one to eighteen months. As a result, offering homes at 300,000 dirhams is becoming increasingly hard, the source said.
The federation wants to discuss with the new government simpler procedures, faster court rulings in rental disputes, tax incentives for landlords and tax exemptions that keep affordable homes between 300,000 and 350,000 dirhams viable. According to the source, the rise in cement consumption mainly reflects infrastructure and non-residential projects rather than a recovery in housebuilding.
For buyers there is another side to this. The same source says developers have little room to raise their selling prices because household purchasing power is limited. At the same time, state purchase aid remains in place: it had around 128,000 beneficiaries at the end of September 2026, and the 2027 budget continues the scheme. In a market where sellers have to compete for buyers, long-term buyers generally have more choice and more room to negotiate.
