Government plans to combat housing speculation

As property prices in Morocco skyrocket, new government plans announced by Finance Minister Salaheddine Mezouar aim to combat housing speculation. The 12 measures are designed to tackle an enormous rise in housing and land prices. The housing ministry reports that between 2003 and 2007, prices per sqm rose by 92% in Marrakesh, 45% in Rabat, 43% in Casablanca and 35% in Tangiers. Prices for plots of land have increased even more, by as much as 358% in Agadir and 234% in Rabat. The government measures to slow the rising prices include a package of tax incentives. One of the tax measures is designed to address the scarcity of building land by taxing vacant lots. Other measures call for the introduction of a tax on the country's estimated 800,000 vacant homes and more public-private partnerships aimed at regulating the market and meeting demand for affordable housing. Professionals in the sector welcome the proposals, but are quick to point out that implementing them will be a major challenge.