Programme addressing housing shortage continues in Morocco

22/07/2007

The Moroccan Ministry of Housing recently announced the second phase of its Dar Lakbira programme to stimulate growth and stability in its real estate and housing sectors. The new phase will build 12,000 new homes and provide investment opportunities to residents of all income levels.

By Sarah Touahri for Magharebia in Rabat – 22/07/2007

[Sarah Touahri] The Dar Lakbira programme will make fully serviced, ready-to-build plots available to buyers.

In a bid to address Morocco's housing shortage and improve the quality of architecture, the Ministry of Housing recently launched the second phase of the Dar Lakbira programme, with co-operation from the Al Omrane group, Morocco's leading property development agency.

The project will see the construction of 12,000 new homes in 34 locations across the country, as a follow-up to the first phase in 2006 that yielded 30,000 new homes.

The project is also intended to encourage private investment in property development and to stimulate growth in real estate enterprises.

In a July 9th press statement, Minister of Housing Toufiq Hijra said that Dar Lakbira represents an attempt to combat real estate speculation, by making land available to individuals (singly, in groups or in families), partnerships, and in particular to people aspiring to become real estate developers. The aim, Hijra announced, is to encourage young people to get into property development and to increase the number of small and medium-sized enterprises (SMEs) in the sector. More emphasis will be placed on Moroccans living abroad, with a quota of 20% of plots of land being reserved for them.

The programme will make fully serviced, ready-to-build plots available to buyers with support provided throughout the term of the scheme, such as credit facilities tailored to suit the pocketbooks of all buyers, with repayments spread out over the duration of the construction programme. It will also facilitate access to bank loans underwritten by the Al Omrane group and provide administrative, technical and management support during all stages of the development process.

The Ministry of Housing hopes the initiative will put an end to property speculation, whereby people buy land for the purpose of selling it a few years later to earn a profit, a practice which has driven property prices consistently upwards.

The first phase of the scheme ran into difficulties which affected the success of its initial aim, which was to help people with savings buy homes. Most people who bought plots did not do so for personal use. Some of them sold them after construction and others keept them for speculation purposes. To get around this problem, the ministry reviewed the application procedure and successful applicants are now obliged to respect the terms of their contracts. Mohamed El Kerdoudi, a member of the Al Omrane board of directors, believes equal opportunities are one of the most important principles underpinning the scheme. "Equality in implementation is the most important factor," he said.

The Dar Lakbira initiative has drawn widespread praise from the public and will offer a wide range of repayment terms. Samia Lachhab, a teacher, told Magharebia she would be keen to buy a plot with the intentions of building a private school.