Opportunity
Problem
Morocco is located in North Africa. Its coastline borders both the Atlantic and the Mediterranean Sea, and its neighbours include Algeria and Mauritania. Southern part of Morocco is valuable because it is home to some of the world’s largest reserves of phosphate and it is believed that off-shore oil deposits also exist. The current population of Morocco is 37,772,757 based on projections of the latest United Nations data.
The Morocco construction market was valued at $17.1 billion in 2021. The market is expected to grow at an AAGR of more than 3% during the period 2023-2026. Over the last decade, Morocco has witnessed an accelerated process of political, economic, and social reforms aimed at improving the business climate and solidifying the economic indicators. Morocco’s structural reforms share the objective of positioning the country as an attractive investment destination. The impact of these reforms has been felt in many sectors particularly real estate which has been developing at phenomenal rates in recent years. Aware of the great strides that Morocco has taken to position the country as an attractive investment destination, many foreign real estate developers expressed their interest to participate in the real estate sector.
Despite this, in recent years, there has been sluggish growth in the real estate market and this is especially visible in the significant drop in the number of real estate-related transactions. While real estate-related transactions noted a modest 4.6% recovery from the previous quarter, the overall number of transactions remains 22.5% below last year’s, according to a newly published report from Morocco’s central bank, Bank Al-Maghrib (BAM). The drop in real estate-related transactions reflects slowing demand in some real estate sectors in the country. The depressed demand can be largely attributed to the economic hardships the country is facing while trying to recover in the post-pandemic era.
While the growth in the price of residential real estate is stagnating, business real estate assets are showing moderate signs of recovery, growing at a year-on-year average of 7.2%. Detailing the growth by the type of real estate, the BAM report shows that the growth in the value of offices is underpinning the recovery of business-related real estate. The value of offices rose by an annual average of a little more than 12% at the end of June.
In the course of the first six months of 2022, the number of real estate-related transactions declined significantly, bleeding almost 38% of its value compared to the previous year, BAM data indicates. Looking at the growth of the real estate market across Morocco’s major cities, the BAM data shows that it is below 1% for all cities including Capital Rabat, Tangier, and Casablanca.
The growth rate is even trending slightly downward for cities like Marrakech and Agadir.
Solution
With a population of over 37 million, the Kingdom of Morocco confronts a poverty rate of 15.5 percent and an estimated housing deficit of 400 000. The lack of access to affordable housing is caused by a shortage in the supply of social housing by the government and the exorbitant cost of housing produced by property developers, resulting in a housing gap between what is being provided and what households can afford.
Advanced Dynamic Engineering LTD aims to partly address the shortage of housing by building sustainable (green), healthy, and quality housing. The project, Smart City Morocco, will be backed by the latest construction technology and innovations on the market. Our passion is to construct and build a Smart City development that is recognized for a high level of quality and serves the communities that need homes. Our advantage lies in our ability to bring solutions in all phases of project planning and project execution for the successful delivery of the Smart City Morocco project.
We will circumvent many of the challenges faced by other developers that relate to high building costs, and lack of skilled labour in the local construction trade while delivering a futuristic environmentally green development.
Market
Our main target market for the development consists of individuals within Morocco, and various other areas of Europe, where we can offer the most effective solutions that will serve their needs now, and into the future. We will target home buyers, Investors, lenders, and other development groups.
By researching the market, we can minimise the associated business risks; have identified new opportunities, all the while enabling us to communicate these benefits to our clients.
We have identified our key market’s demographic, geographic, psychographic, and behaviouristic characteristics, as follows:
- Demographic: Age, Gender, Income, Education, Ethnicity, Family size
- Geographic: Region, city, neighbourhood
- Psychographic: Social class, lifestyle, personality, values, life stage
- Behaviouristic: Buying pattern, consumption, loyalty, and attitude.
According to current projections, Morocco’s population is expected to peak at 47.77 million people in 2069. Over the past 50 years, Morocco’s total population has increased by 180% and has risen year-over-year for a decade.
Morocco’s population is growing at a rate of 1.2% per year, which has declined slightly in the past few years.
Morocco remains a demographically young country with a median age of 29.5 years and a fertility rate of 2.42 births per woman, well above the population replacement rate of 2.1 births per woman. This combination will allow Morocco’s population to continue to grow well into the future, although not as rapidly as other African countries. Morocco’s population growth is slightly slowed by negative net migration of about 50,000 people every year.
Fig 1: Morocco Population: Advanced Dynamic Engineering LTD
Roadmap
For our roadmap will ensure we take a good look at all aspects of the development’s requirements. This will result in a strategic tool that will serve as a guide for better and more effective management. It will help us to identify opportunities and challenges and will also focus our attention on important questions to be tackled.
While our company is at present a bespoke consulting and manufacturing company, we are currently in the planning phase to leverage our agility, flexibility, and project expertise to expand our team as needed, to deliver a Smart City Morocco development. As such, the roadmap for this expansion can be summarised as follows:
- Vision, strategy, and goals.
- Setting revenue and profitability targets and following strict financial controls.
- Provide accurate forecasting and projections that will remain conservative to protect the investment of all parties.
- Focus on promising what we deliver and acting conservatively to ensure all invested parties’ assets are protected.
- Completing and delivering the Smart City Morocco development within two years and the 45 million USD construction budget.
Company Overview
Advanced Dynamic Engineering LTD started the business with classic engineering services in the construction, automotive, aerospace, and medical device areas. We lead all projects and accordingly assign work packages to suppliers, which are monitored by us.
We use the experience we have accrued across numerous business sectors to trigger a significant improvement in terms of process and work quality and thus the quality of products and services.
In our company, experience from different industries is complemented by a solid engineering knowledge base.
Advanced Dynamic Engineering LTD offers engineering services from Germany:
- Engineering
- Project management
- Consulting
- Process optimisation (e.g. LEAN), tasks within the discipline of development, as well as quality management (e.g. global supply chain setup).
System Supplier:
As a system supplier with its own production operation, Advanced Dynamic Engineering LTD is in a position to handle component development, tool design, mould construction, sampling, and moulded part production.
3D Printing Prototypes:
The use of 3D printing elements is on the increase and as early as during the development stage of a product, we can realise prototypes and small series in 3D. We work with metal-reinforced plastics that look very much like metal parts. In particular as hand-held or illustrative models, these specimens convey a convincing representation of the subsequent component thanks to their metal-like appearance and qualities.
