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The perverse effects of housing aid

The deputy for the Party of Progress and Socialism (PPS) in the House of Representatives, Nadia Touhami calls for a mid-term assessment of the housing aid program, intended for medium and modest income households, in order to correct disparities and guarantee the effectiveness of subsidies.

In a written question addressed to the Minister of Housing, Nadia Touhami urged the government to carry out a mid-term assessment of the housing aid program, after two years of implementation. According to this study will correct the noted gaps and adjust the system in order to impact more beneficiaries. The parliamentarian expressed the perverse effects of the standardization of a reference price, modeled on that of land in major cities, stressing that this approach “leads to artificial inflation of real estate values, thus reducing the purchasing power of modest households, particularly in intermediate cities”.

Read: Morocco: Discovery of massive fraud on the housing assistance program

Since the launch of the program in January 2023, housing prices have increased, reaching 250,000 dirhams for an apartment of an initial value of 180,000 to 200,000 dirhams. Other goods estimated between 350,000 and 400,000 dirhams are now sold to more than 450,000 dirhams. Inflation that makes public aid ineffective. The deputy of the PPS also deplored the not taken into account of territorial disparities, construction costs and local commercial values in the implementation of the program, noting that this “principle of positive territorial discrimination […] could have helped to alleviate space inequalities ”.

To read: Morocco: real estate in the midst of crisis, sales collapse

“According to the deputies, the establishment of a reference price adapted to each province and prefecture is essential to achieve the objectives set”, writes Al AHDATH Al Maghribia. The parliamentarian questioned the Minister on the statistics available on this program since its launch, as well as the measures envisaged to expand access to the greatest number. Launched in January 2023, the housing assistance program aims to facilitate access to property for first -handed income buyers, residents in Morocco or abroad.

briar.mckenzie
briar.mckenzie
Briar’s Seattle climate-tech dispatches blend spreadsheet graphs with haiku about rain.
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