A new analysis from property investment company, JLL has found that performance across Casablanca’s real estate market remained relatively stable throughout 2018. The firm’s 2018 Year in Review report shows that new projects emerging in the region are also enhancing investor sentiment across all sectors
Meanwhile, leading consulting company, Oxford Economics predicts Morocco’s real GDP will increase by 3.3% in 2019, owing to the expansion of the industrial sector, increased tourism and higher levels of capital spending.
As a result, the hospitality and retail sectors continued to remain active in 2018 with new projects set to enter the market in 2019. There was also a notable 8.5% increase in tourist arrivals in 2018 compared to the previous year, according to Morocco’s National Tourism Office (ONMT).
It has also emerged that hotel performance remained largely stable in 2018 with the sector now maturing due to the entry of new international operators. With increased spending in this sector, Casablanca aims to position itself as a leading destination for MICE and business tourism in the region which is also being supported by improved infrastructure.
“The government is focused on improving tourism sites and the infrastructure of the city, and several rehabilitation projects are currently underway including the cable stayed bridge of Sidi Maarouf, the Grand Theatre and redevelopment of coastal sites,” said Craig Plumb, Head of Research for JLL’s Middle East and North Africa (MENA) region.
“Casablanca’s hospitality sector will continue to witness positive sentiment with new international developments entering the market,” he added.
The region’s retail sector continues to transform in relation to evolving consumer preferences. Retail developers are now responding to the change in demand by offering integrated retail parks housing additional leisure and entertainment facilities. Performance across the retail sector remained stable over 2018, paving the way for increased mall-based retail space entering the market giving tenants a diversified choice in the future.
After its strong performance in the first half of 2018, Casablanca’s commercial real estate market was relatively subdued in the latter half of last year.
The experts say that with new real estate investment funds entering the economy, the commercial market is due to remain active in the future.
And with the refurbishment of the infrastructure underway, JLL has believes that that Casablanca’s industrial sector will continue to attract operators due to its well-established road, port and air networks.