Social housing is fast becoming the Addoha’s main source for future growth. According to the firm’s accounts, as of 30 June 2010, this segment was a key part of Addoha’s overall turnover, accounting for MD2.6bn in the first quarter of 2010. Sales of high-end primary residences provided MD283m and high-end second homes targeting European and non-resident Moroccan buyers added MD291m in the same period.

The company’s high-end business has been impacted by the ongoing debt crisis in Europe. Most of its second homes sales are targeted at the French, Belgian and Spanish markets, and transactions have greatly reduced since 2008 and over the course of 2011. Although full-year results for 2011 are not yet available, net profits for the first half of the year came to MD481m, a 30 per cent fall over the same period in 2010. This follows a 12 per cent drop in turnover to MD2.8bn.

The firm was also affected by the 2008 economic downturn buffeting the country’s tourism sector. Project delays to Plan Azur, a state scheme to build up to six seaside resorts, has impacted Addoha’s financial performance.

Addoha is one of the primary developers of the MD12bn Saidia resort on the Mediterranean coast in the northeast of the country. The project covers 7 million square metres along the coastline and involved the construction of six hotels, 3,000 villas, three 18-hole golf courses and a 740-berth marina with retail outlets. Addoha has had to sell some of its equity in the resort to its partners to reduce long-term debt, which stood at MD5.6bn as of 31 December 2010.

Despite the delays to tourist projects, long-term demand for housing is assured by the need for new homes from middle- and low-income families. The housing deficit for 2011 is estimated at about 608,000 units, according to a recent report from the Moroccan Housing and Urban Planning Ministry.

By 2015, the government wants to construct at least 1.5 million housing units, building an average of 300,000 units a year. It remains committed to its targets with Rabat supporting various schemes to encourage domestic real-estate developers and promote the construction of new sites.

The tourism real-estate sector is expected to recover over the medium term despite delays and withdrawal of some foreign investors from tourism projects in the country. Rabat is focused on a national strategic plan to develop tourism, which in 2011 accounted for 9.1 per cent of gross domestic product, contributing MD74.2bn to national coffers. Addoha, along with other developers, is assured of a more stable financial future on the back of state commitment to these sectors.