Question

I need a pestle analysis on real estate project in Morocco. Just small topic.

Thank you

Answer 1

Before going to the actual answer, let me give a brief introduction to Morocco. Morocco is a country, situated in the northern most part of Africa with Rabat as capital city and Moroccan Dirham as currency with 99.8% of its population following Islam. By population, it is the fifth largest Arab country. It stands in 123^rd position in latest HDI rankings.

Now let me explain PESTLE analysis on real estate project in Morocco.

Political factors:

Morocco has an elected parliament with constitutional monarchy. Since 2011, there has been steady political environment. Now, unlike earlier, under the new law, the prime minister and parliament have more powers. It has multiple political parties. Currently, the Islamic Justice and Development Party is dominant among others. Although there have been many institutional changes, the power lies in the hands of few elite groups. However, in case of real estate business this is not a hindrance.

Economic Factors:

During the previous decade, the economy of morocco grew at very high rates, for example, in 2001 and 2006 the GDP growth rate was 7.6 and 7.8% respectively. However, in recent years the economy has not been faring well. In 2016, the GDP growth rate was just 1.8%, which was the lowest in the past 17 years. But it is expected that the economy will accelerate. IMF estimated that the growth rate will be 4.2% in 2018. In the year 2015 and 2016, the house prices fell 2.6%. Apartment prices also fell by 1%. However the villa prices have gone up by 2.7% 2016. Morocco is the largest exporter of refined and crude phosphate. There are positive hopes for the future on Moroccan economy, which is good for the real estate business.

Social Factors:

Population in Morocco has been growing at rapid pace. By population, it is the fifth largest Arab country. The country faces lot of poverty and unemployment. According to the World Bank, the population below poverty line are around 8 million in Morocco. Sometimes the socio-economic conditions lead to unrest and emigration. Education in Morocco is free and compulsory. However, there are many drop outs in school level, especially rural area children and girls. Morocco is patriarchal society. Marrakech is the tourist place in Morocco.

Technological factors:

There has been good support from the Moroccan government for logical research. Morocco has very good resources that can change the face R&D part of the country. There are few labs with high caliber. But the focus on research started vey late in Morocco. There has been very less application of science in society. This factor may not affect much on the real estate business in Morocco.

Legal Factors:

Morocco has made new laws to accommodate private sector, which encourages private capital. The government has made labor code, which complies the standards set by the constitution. There has been intimidation prohibition. Three have been equal wages. The Competition Council has been playing a crucial role in ensuring genuine monetary connections and reducing unfaithful business in markets. There are proper laws on copyrights. The fees and taxes are similar to European standards. The legal factors are not hurdle for real estate project.

Environmental Factors:

Morocco has taken good measures to strengthen ecological and natural insurance since, 2010. The environment in Morocco has been changing, there has been down trend I precipitation. The government has been trying hard to change the quality of water to save the agricultural business the economy. Rest other environmental factors are decent enough for real estate business.

These are the insights we can get from PESTLE analysis on real estate project in Morocco.