Understanding the determinants of house prices in Moroccan cities

Purpose This study aims to analyze the main factors affecting house prices in various major Moroccan cities. This study uses a hedonic pricing model with robust standard errors to figure out the relationship between the structural, amenity and locational characteristics and house prices. This study draws on data from Avito.ma, a leading Moroccan online real estate platform, filling a major gap in understanding housing markets across Morocco and the wider MENA region while providing valuable insights for policymakers, developers and investors. Design/methodology/approach This study uses an Ordinary Least Squares model with robust standard errors. The dependent variable is the natural logarithm of housing prices. The analysis is based on 1,088 verified housing listings collected from Avito.ma between February and May 2025. The independent variables consist of property size, floor level and a range of amenities, including parking, air conditioning, sports facilities and security. To capture regional differences, city fixed effects were added to the model. This approach makes it possible to eliminate local price dynamics and account for unobserved spatial variations. A Chow-type test was conducted to establish whether the factors influencing housing prices differ from one city to another. Separate regressions were estimated separately for the cities included in the data set, and the results were compared using joint Wald tests. The null hypothesis of equal parameters across cities was rejected at the 5% level, showing that housing price determinants vary significantly between regions. Additional diagnostics confirmed that the model performs reliably and is statistically sound. Findings The findings of this study indicate that property size is the predominant factor influencing home costs, while the advantage of additional space diminishes after a specific threshold is attained. Amenities significantly influence property value; homes equipped with security systems command approximately 7.8% higher prices, while those with parking spaces sell for roughly 5.9% more. Conversely, properties equipped with heating systems or in regions exhibiting indicators of social hardship generally possess lower value. Properties with ocean views command a significant premium of approximately 26%. The inclusion of city fixed effects clarifies the variations in property markets across Morocco. Prices in Rabat and Casablanca are significantly higher compared to neighboring cities, although El Jadida (−26%), Azemmour (−33%) and Kenitra (−11%) exhibit substantial reductions. The findings confirm that Morocco’s urban housing market operates within a polycentric spatial framework instead of a purely monocentric one. Research limitations/implications Although the Web sources provide valuable insights into housing market dynamics in major urban centers, they lack sufficient information about informal settlements and rural areas, leading to selection bias. The four-month observation window also makes it difficult to examine seasonal and cyclical dynamics. The field should move away from static, cross-sectional analyses and toward dynamic frameworks that can show how housing factors change over time in response to changes in the economy, policy and population. The use of a mixed method will help us better understand the factors affecting housing values. Practical implications The findings highlight the need for geographically differentiated housing policies. To promote balanced regional development, policymakers should prioritize increasing infrastructure, safety and urban amenities in undervalued cities, while developers are encouraged to include security and parking facilities as value-enhancing investments. In high-demand areas like Rabat and Casablanca, supply-side initiatives such as inclusionary zoning can help with affordability, whereas periphery cities would benefit more from basic infrastructure and service upgrades. Social implications The recommendations based on the results help make cities more livable and welcoming to everyone. Better neighborhoods and better connections between cities can help people move up in society, lower inequality between areas and encourage balanced growth in cities. Making things safer, easier to get to and less expensive makes not only life better for people who live there but also the community healthier by making living spaces safer, more connected and more cohesive. Originality/value To the best of the authors’ knowledge, this study is one of the first rigorous applications of hedonic pricing model to Morocco’s housing market, using high-frequency internet data. This study contributes to the empirical literature by merging modern amenities, spatial fixed effects and robust estimating methodologies, which improve methodological precision and policy relevance. The findings serve as an analytical foundation for evidence-based urban planning and housing policy in MENA’s growing economies.