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CPS1198 Firano Z. et al.
Figure 3. Variation of BKAM index and hedonic index for Rabat Region

The use of the hedonic approach and predictive simulation according to
the stochastic model has allowed to give a clue in the behaviour is almost
identical to that of the official index of Bank al Maghrib. The cycles translated
by the two indices are the same. Indeed, the degree of correlation between
the two variations is close to 77%, which reinforces the results obtained via the
hedonic approach.

5. Conclusion
Due to the importance of the real estate market in Morocco, public action
has spread over the development of a range of indicators for the monitoring
of this sector, which is one of the most important sectors in Morocco. In this
perspective, two elements are essential, first, the need to understand the
factors determining the evolution of property prices in Morocco, and then
implement a new, economic approach to the construction of real estate
indices that can be complementary to that in use at the central bank.
In this paper, we have developed a hedonic model to identify factors or
characteristics that can explain the formation of real estate prices. Our analysis
was spread over the Rabat region where three areas were studied namely: the
area of the centre of Rabat, the residential and administrative district of Hay-
Riad-Agdal and the city of Témara. The results indicate that the spatial
correlation factor and the footage are the two major determinants of real
estate pricing in the Capital Region. Thus, the mimetic impact of the
neighbourhood largely affects the price of goods in the Rabat region and the
spatial character described by the square meter is decisive in the negotiations
on the market.

References
1. Abraham, Jesse M., Hendershott, Patric H., 1996. Bubbles in metropolitan
housing markets. Journal of Housing Research 7, 191–207.

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