Morocco's Housing Finance Sees Strong Growth, Driven by Islamic Loans

Morocco's housing finance sector, especially through "real estate murabaha" (Islamic real estate financing), experienced significant growth, reaching 31.5 billion dirhams by the end of June. This represents a 16.7% increase compared to the same period last year, when the figure stood at 27 billion dirhams, according to Bank Al-Maghrib.

The central bank's latest dashboard on "Bank Loans and Deposits" highlighted this upward trend. During the first quarter of 2026, banks indicated a relaxation of lending criteria for both housing and consumer loans. This suggests a more favorable environment for borrowers seeking to finance property purchases or other needs.

Conversely, the demand for loans from banks saw a slight decrease for housing loans, while remaining stable for consumer loans. This could indicate a potential saturation in the housing market or other factors influencing borrowing decisions for property.

Regarding interest rates, the report indicated stability during the second quarter of 2026. The average interest rate applied to new housing loans was 4.53%, while consumer loans averaged 6.81%. These rates provide a benchmark for potential borrowers navigating the current financial landscape for property acquisition or personal financing.

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