Morocco to inject MAD 52 bln in housing sector

Morocco will inject 52 billion dirhams ($ 6 billion) in housing projects for poor and middle-class families under two agreements signed, here Monday, in a ceremony chaired by king Mohammed VI.

    The two agreements provide for mobilizing 3.853 Ha of public land to build 200,000 housing units with investments estimated at 52 billion dirhams.

    Under these agreements, some 14 urban centres will be created and 28 housing programs will be carried out in 32 cities and centres in eleven regions of the Kingdom.

    The first agreement provides for mobilizing public land to carry out low-cost housing programs for poor and middle-class families, while the second is meant to set up a housing guarantee fund "Daman Assakan" for middle-class families.

    On this occasion, Finance minister, Salaheddine Mezouar, presented a report to the sovereign, wherein he noted that the housing sector achieved a 9% increase during the last five years compared with 5% for the national economy, with a share of 110 billion dirhams of investments in 2008 (+50% at national level), against 69 billion dirhams in 2004.

    The sector created over 208,000 additional jobs in the same period, including 65,000 last year, that is 50% of new jobs, he pointed out.
    He said that bank credits allocated to real estate quadrupled to reach 153 billion dirhams in 2008, with an improvement in financing conditions, notably reduced interest rates.

    These achievements have been made with the help of the State, which has given priority to programs aimed at fighting unhealthy housing, and supported low-cost housing through three mechanisms. The latter provide for the mobilization of public financial resources estimated at 13 billion dirhams, the development and availability of a public land of 13,000 ha to developers with favorable conditions, and the creation of guarantee fund “FOGARIM” to provide limited income and non-permanent income households with real estate credits.

    For his part, Housing minister, Toufiq Héjira, noted that the government aspires to reduce the housing shortage to 27% by 2012.

    Holding Al Omrane, as an efficient means of public intervention in the monitoring of the real estate market, plans to open new worksites in 2012, he said, adding that the funds, which will be allocated to these sites, are estimated at about 160 billion dirhams, 45 billion of which are direct investments.

    The land to be mobilized in this regard will help to build 200,000 housing units, the third of which will be dedicated to low-cost housing (140,000 dirhams), Hejira said, adding that the remainder will be equally distributed between low-cost housing and housing for middle-class families.

MAP