Casablanca’s commercial market shows signs of recovery, says JLL

Posted On Wednesday, 14 November 2018 11:55 Published by
Rate this item
(0 votes)

According to the report, a few commercial buildings were completed in the first half of 2018, increasing the total office supply to about 1.74 million sq m of Gross Leasable Area (GLA).

 Christian_Ulbrich

Casablanca’s commercial sector showed signs of improvement in the first half of the year in 2018, reveals JLL’s latest Casablanca H1 Real Estate Overview Report. The positive sentiment in the market was strengthened by the successful capital raising by Immorente Invest (the first and unique investment company established in the form of a REIT)  that raised  400 Million Moroccan Dirhams to fund further investments.

According to the report, a few commercial buildings were completed in the first half of 2018, increasing the total office supply to about 1.74 million sq m of Gross Leasable Area (GLA). The average rents have slightly increased over the first half of the year, while vacancies in prime office buildings and integrated office parks have remained low. The report also predicts sales and transactions to grow in the commercial sector with a particular focus on income generating assets.  

Tenants from the commercial sector continue to report a shortage of quality office space, resulting in an increase in demand for high-quality office space in Casablanca. This trend becomes evident as employees increasingly seek to improve the welfare and performance of their employees” said Craig Plumb, Head of Research for MENA at JLL.

“Additional office premises are expected to enter the market before the end of 2018, bringing the total stock to 1.76 million square meter. Notable projects currently under construction include Horizon Business Centre, CCF Office Building and Green works Centre. If construction remains in line with the projected time of delivery, total office GLA will reach 1.86 million sq. m by the end of 2020,” he added.

The retail sector witnessed a slight increase in supply with the completion of a commercial gallery of 5,000 sq m of GLA. The average rent for new leases in the prime malls have remained stable over the first half of 2018 while rents across street retail stores increased by 9% compared to the same period last year.

The overall performance of the hotel market improved slightly over the first half of 2018 compared to the same period last year. The positive performance of the market in 2018 reflects a number of new promotion programs for both leisure and business travellers, increasing the number of visitors to the city.

With the Moroccan National Tourism Board commencing a new office in China, there has been an increase in Chinese tourists and in turn this model, once replicated in India, will see a positive influx of visitors from India with similar trends.

The Industrial Acceleration Plan (PAI) 2014-2020 now in its implementation phase, has had a positive impact on the industrial sector. This plan has contributed to increased exports, the upgrade of the industrial infrastructures and the enhancement of the city’s competitiveness in the region.

Last modified on Monday, 19 November 2018 08:29
" "

Most Popular

Equites Property Fund to list on A2X

Jun 25, 2019
ANDREA TARVENA
Equites Property Fund Limited has been approved for a secondary listing on A2X Markets…

McCormick Property Development Celebrates the Opening of Katale Square

Jun 29, 2019
 JASON MCCORMICK
McCormick Property Development celebrated the launch of its 66th development with the…

New standard bank deal will make it easier for self-employed professionals to qualify for the mortgage bonds

Jul 03, 2019
 STANDARD BANK
Ever since the tightening of credit rulings in the South African economy which followed…

Hyprop reduces exposure to Africa and provides pre-close update

Jun 29, 2019
MORNE WILKEN
JSE specialist shopping centre REIT, Hyprop, today announced progress on its strategy…

Twin City to develop new R230m mall in Vryburg, North West

Jul 10, 2019
 TWIN CITY
The North West agricultural town of Vryburg is set to get its first enclosed shopping…

Please publish modules in offcanvas position.