Finance Headlines Morocco

Morocco’s 2027 budget bill targets affordable rental housing for youth and students

Morocco’s 2027 draft budget (PLF 2027) introduces a new national affordable rental housing program aimed at students, young professionals, newly formed households, and workers relocating for employment, according to details presented by Minister of Economy, Finance and Public Sector Performance Fouzi Lekjaa.

The initiative seeks to address longstanding difficulties faced by young Moroccans in accessing reasonably priced rental accommodation, particularly in major university and employment hubs.

Under the plan, the government will mobilize public land for housing operators, who will be required to comply with rent ceilings and keep the properties available for rental over a defined period.

Authorities intend to prioritize sites located near universities, employment centers and public transport networks. Details regarding rental rates, the number of units to be built and the implementation timetable are expected to be announced at a later stage.

The budget bill also places significant emphasis on student accommodation. According to government estimates, Morocco faces a shortfall of nearly 400,000 student beds, while current capacity stands at around 130,000 beds, including approximately 60,000 in public facilities.

To help bridge the gap, the government plans to rely on private investment and public-private partnerships. Projects selected through a call for expressions of interest are expected to provide an additional 11,000 beds in university residences.

The government is also preparing to extend its direct housing assistance program beyond 2028 following an independent evaluation. The objective is to reach at least 300,000 cumulative beneficiaries. By the end of September 2026, more than 314,000 applications had been submitted and 128,000 grants had already been disbursed.

Beyond urban rental housing, the PLF 2027 includes plans to upgrade or build 100,000 homes in rural areas over five years, particularly in emerging rural centers and underserved regions.

The program will be accompanied by new legislation on rural urban planning aimed at simplifying construction procedures and promoting housing models adapted to local conditions and safety requirements.

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