Table of Contents
- Executive Summary: Key Takeaways & Market Overview
- Current Real Estate Landscape in Western Sahara (2025)
- Critical Legal Framework, Land Rights, and Ownership Laws
- Taxation and Compliance: What Stakeholders Must Know
- Foreign Investment Regulations and Restrictions
- Economic and Demographic Drivers of Real Estate Demand
- Key Statistics: Sales, Prices, and Rental Yields (2025–2030)
- Major Projects, Infrastructure, and Urban Development Initiatives
- Risks, Challenges, and Geopolitical Considerations
- Future Outlook: Market Forecasts, Opportunities, and Strategic Recommendations
- Sources & References
Executive Summary: Key Takeaways & Market Overview
The real estate landscape in Western Sahara remains highly complex and contentious as of 2025, deeply influenced by ongoing geopolitical disputes, a lack of internationally recognized sovereignty, and strict legal uncertainties. The region, claimed by both the Kingdom of Morocco and the Sahrawi Arab Democratic Republic (SADR), is subject to overlapping administrative frameworks and unresolved questions of international law. As a result, real estate activities—including property development, transactions, and foreign investments—are fraught with legal ambiguity and compliance risks.
- Legal and Regulatory Context: Morocco administers the majority of Western Sahara’s territory and applies Moroccan law to real estate ownership, land registration, and property transactions. However, the United Nations considers Western Sahara a non-self-governing territory, and no country formally recognizes Moroccan sovereignty over the region. This legal discord results in significant compliance challenges for international investors and companies seeking to operate or acquire assets in the area (United Nations).
- Recent Events and Compliance: In 2023–2025, several European and African companies have faced scrutiny over resource extraction and construction projects in the region. The European Court of Justice has repeatedly ruled that EU-Morocco agreements cannot be automatically applied to Western Sahara without the explicit consent of the Sahrawi people, reinforcing the need for due diligence and caution in real estate and infrastructure investments (Court of Justice of the European Union).
- Market Activity and Key Statistics: Reliable market data is limited due to the political situation and lack of independent oversight. However, Moroccan government sources report increased urban development in Laayoune, Dakhla, and Boujdour, including housing, tourist infrastructure, and public works, largely funded by Moroccan state investment programs (Government of Morocco). Local property transactions are governed by Moroccan registries, but such records are not internationally recognized outside Morocco.
- Outlook for 2025 and Beyond: The outlook for real estate in Western Sahara is uncertain and highly dependent on political developments, including ongoing UN-led negotiations. While Morocco continues to promote investment and urbanization in the region, international legal risks remain substantial. Companies are advised to conduct rigorous legal due diligence and monitor international court rulings and United Nations proceedings closely.
In summary, real estate in Western Sahara in 2025 is characterized by regulatory ambiguity, political risk, and limited transparency. The sector’s future trajectory will hinge on diplomatic negotiations, legal rulings, and the evolving stance of international organizations.
Current Real Estate Landscape in Western Sahara (2025)
The real estate landscape in Western Sahara continues to be shaped by its unique political and legal circumstances. Western Sahara is a disputed territory, with much of the area administered by Morocco, which considers it its “Southern Provinces”, while the Sahrawi Arab Democratic Republic (SADR) claims sovereignty over the territory. This ongoing dispute directly impacts property rights, investment, and compliance frameworks in the region.
Administratively, Morocco has integrated Western Sahara into its national legal and regulatory system, extending Moroccan property law, land registration, and investment incentives to the region. Moroccan authorities promote real estate projects—especially in the cities of Laayoune, Dakhla, and Boujdour—under national development and economic stimulus programs. In 2023, Morocco announced new housing incentives and urban development projects aimed at increasing access to affordable housing throughout the country, including in Western Sahara (Ministry of Interior, Kingdom of Morocco). These initiatives are expected to accelerate in 2025, with a focus on both residential and tourism-related real estate, particularly in Dakhla, which has seen a surge in hospitality and mixed-use developments.
However, legal certainty for property ownership in Western Sahara remains complex. The United Nations does not recognize Moroccan sovereignty over Western Sahara, and the European Court of Justice has repeatedly clarified that EU trade and association agreements with Morocco do not apply to Western Sahara without the explicit consent of its people (Court of Justice of the European Union). As a result, international investors may face challenges regarding compliance with international law and risk assessments, particularly concerning land acquisition and resource use.
Key statistics are difficult to obtain due to the contested status and lack of comprehensive independent data. Nevertheless, Moroccan government sources report ongoing growth in real estate transactions in Dakhla and Laayoune, driven by infrastructure expansion, new ports, and tourism investments (Ministry of National Planning, Urban Planning, Housing and City Policy). By 2025, the region is projected to outpace some northern Moroccan provinces in terms of new building permits issued and urban land developed, although the market remains highly localized and contingent on Moroccan administration.
Looking ahead, the outlook for real estate in Western Sahara will remain closely linked to political developments, regulatory adaptations, and the willingness of private and institutional actors to navigate the prevailing legal ambiguities. The region is likely to see continued real estate growth under Moroccan administration, particularly in tourism and urban housing, but international compliance and legitimacy issues will persist until a final political resolution is achieved.
Critical Legal Framework, Land Rights, and Ownership Laws
The legal framework governing real estate in Western Sahara remains complex and highly contested, reflecting the region’s unresolved status under international law. Western Sahara is classified by the United Nations as a “Non-Self-Governing Territory,” pending a process of self-determination. The territory is claimed and largely administered by the Kingdom of Morocco, which applies its domestic legal and regulatory structures—including those related to real estate, land rights, and property transactions—across much of the region. However, these applications are not recognized by the United Nations or the African Union, nor by a substantial number of member states, which has direct implications for legal certainty, property rights, and investment security in the coming years (United Nations).
Under Moroccan administration, land registration and property rights in Western Sahara are managed in accordance with Moroccan law, specifically the Dahir (Royal Decree) on the registration of real estate properties and the Code des Droits Réels (Real Rights Code). Official documents, such as land titles and notarial deeds, are issued by Moroccan authorities in Laayoune and other major towns. Moroccan legal reforms in recent years have aimed to strengthen property registration, enhance transparency, and encourage investment, including in Western Sahara (Ministry of Justice, Kingdom of Morocco). However, international organizations have repeatedly noted that such acts are not recognized as valid under international law, raising significant risks for foreign investors and questions about the enforceability of property rights (International Court of Justice).
Land tenure in Western Sahara is further complicated by a duality of claims: the Sahrawi Arab Democratic Republic (SADR), which controls parts of the territory and operates its own legal framework, contests Moroccan administration and asserts its own regulations regarding land and resources. However, SADR’s authority is not widely recognized by international bodies, and its practical capacity to enforce property rights remains limited (African Union).
As of early 2025, no comprehensive or transparent public statistics are available on the volume or value of real estate transactions in Western Sahara due to the political situation and lack of internationally recognized cadastral data. As a result, real estate development and transactions are primarily driven by Moroccan public and private entities, with limited foreign participation and significant compliance risks. The outlook for 2025 and the coming years is expected to remain uncertain, pending progress in the UN-led political process, and investors are advised to conduct enhanced due diligence and monitor developments closely (Ministère de l’Europe et des Affaires étrangères).
Taxation and Compliance: What Stakeholders Must Know
The taxation and compliance landscape for real estate in Western Sahara remains complex in 2025, primarily due to the territory’s disputed status and the application of Moroccan law in most administered areas. Stakeholders—including investors, developers, and property owners—must be aware of the applicable legal framework, tax obligations, and compliance risks unique to this context.
Morocco administers the majority of Western Sahara and fully incorporates the region into its national tax and property registry systems. Consequently, Moroccan tax law—including land registration duties, annual property taxes, and capital gains taxes—applies to real estate transactions and ownership in the territory. The Direction Générale des Impôts enforces these regimes, requiring property buyers and sellers in Western Sahara to follow the same procedures as elsewhere in Morocco: registration with local authorities, payment of notary fees, and submission of documentation for property transfers.
Due diligence is essential, as the legal status of land titles in Western Sahara can be complicated. Some parcels may have unclear ownership histories due to the region’s history of displacement and ongoing disputes. Investors must verify land titles through the Agence Nationale de la Conservation Foncière, du Cadastre et de la Cartographie, which maintains Morocco’s official land registry—including records for administered areas of Western Sahara. Failure to confirm title legitimacy can lead to significant legal and financial exposure.
Internationally, the application of Moroccan law in Western Sahara is contested. The United Nations does not recognize Moroccan sovereignty over the territory, and certain international rulings—such as those from the Court of Justice of the European Union—have found that agreements or investments involving Western Sahara must explicitly include its people’s consent. This creates compliance risks for foreign stakeholders, particularly companies from jurisdictions with strict international law obligations. Multinational investors should consult legal counsel with expertise in international law and Moroccan property regulations to navigate these complexities.
Looking ahead, the outlook for real estate taxation and compliance in Western Sahara will depend on political developments and continued international scrutiny. While Moroccan authorities are likely to maintain existing tax and compliance structures in the short term, stakeholders should remain vigilant regarding evolving legal challenges and potential changes in international recognition or regulatory enforcement. Proactive compliance, rigorous due diligence, and ongoing monitoring of both local and international legal updates are critical for minimizing risk and ensuring lawful operations in Western Sahara’s real estate sector.
Foreign Investment Regulations and Restrictions
The regulatory environment governing foreign investment in real estate within Western Sahara remains complex and closely intertwined with the territory’s unresolved legal and political status. Western Sahara is recognized by the United Nations as a non-self-governing territory. Morocco administers approximately 80% of the region, including its principal cities and key economic zones, while the remainder is controlled by the Sahrawi Arab Democratic Republic (United Nations).
Moroccan law applies in the territory under Moroccan control, and, as such, foreign investment in real estate is subject to Morocco’s national frameworks. The Moroccan Law 39-08 governs real property rights, stipulating that foreign nationals and entities may, with certain restrictions, purchase and own real estate for commercial, tourism, or industrial purposes. However, agricultural land is generally off-limits to foreign ownership, except where authorized by decree. All foreign investments are required to be registered with the Moroccan Exchange Office (Office des Changes) to guarantee repatriation of funds.
- Compliance and Licensure: Foreign purchasers must obtain approvals from multiple agencies, including the Ministry of Interior and the Ministry of Economy and Finance (Ministère de l’Economie et des Finances), and must ensure that transactions are carried out with locally registered notaries. Enhanced due diligence is required due to the territory’s sensitive status.
- International Law and Disputes: The International Court of Justice and the United Nations have repeatedly emphasized the necessity for compliance with international law in dealings related to Western Sahara’s resources, including real estate. There remain risks of legal challenge to transactions perceived as exploiting resources absent the consent of the Sahrawi people.
Recent years have seen modest growth in real estate activity in the region’s Moroccan-administered areas, particularly in Laayoune and Dakhla. Official Moroccan statistics indicate new construction permits and foreign investment projects are being approved, though precise figures specific to Western Sahara are not separately disclosed (Haut-Commissariat au Plan).
Looking ahead to 2025 and beyond, the outlook for foreign investment in Western Sahara real estate is cautiously optimistic but remains contingent on both political developments and continued regulatory scrutiny. Investors are advised to maintain strict compliance with Moroccan law and international best practices, and to stay abreast of evolving territorial status and potential legal challenges from international bodies.
Economic and Demographic Drivers of Real Estate Demand
The real estate sector in Western Sahara is uniquely shaped by its complex political status, demographic shifts, and economic developments. As of 2025, Western Sahara remains a disputed territory, with de facto administrative control exercised by Kingdom of Morocco over most of its territory, while the Sahrawi Arab Democratic Republic claims sovereignty but controls only limited areas. This ongoing dispute directly impacts real estate regulation, investment, and compliance.
Demographically, Western Sahara’s population is estimated to be around 600,000, with significant concentrations in urban centers such as Laayoune, Dakhla, and Smara. These cities have experienced rapid urbanization, partly fueled by state-led investments and government-backed incentives for settlement and economic development in the region. The Haut-Commissariat au Plan (Moroccan High Commission for Planning) reports that urban population growth in the region has exceeded the national average, with annual increases of 2–3% in major cities, reflecting both natural population growth and migration encouraged by economic opportunities.
Economically, the region’s main drivers include fishing, phosphate mining, and, increasingly, renewable energy projects. The Moroccan government has invested heavily in infrastructure such as ports, airports, and road networks, particularly in Laayoune and Dakhla, to support these sectors (Moroccan Investment and Export Development Agency). These investments have spurred demand for both residential and commercial real estate, with new housing developments and business parks emerging around these growing economic hubs.
Legal and compliance frameworks for real estate transactions in Western Sahara follow Moroccan law, as enforced by local offices of the Ministry of Justice and Ministry of Economy and Finance. However, due to the territory’s unresolved status under international law, property rights—especially for foreign investors—remain sensitive. The United Nations considers Western Sahara a non-self-governing territory, and advises that exploitation of resources and large-scale property transactions require the consent of the local population.
Looking ahead to 2025 and beyond, the real estate outlook in Western Sahara is cautiously optimistic, conditioned by continued Moroccan investments and urban growth. Key risks include ongoing legal disputes, potential shifts in international policy, and compliance with evolving international standards regarding disputed territories. Nonetheless, as government-backed infrastructure and industrial projects expand, demand for urban housing and commercial space is expected to grow, especially in Laayoune and Dakhla, positioning Western Sahara as a region of emerging, albeit complex, real estate opportunities.
Key Statistics: Sales, Prices, and Rental Yields (2025–2030)
The real estate market in Western Sahara remains highly atypical due to its unique political status and evolving administrative dynamics. As of 2025, Western Sahara is a disputed territory, with Morocco having de facto administrative control over much of the region while its sovereignty remains unrecognized by the United Nations and many countries. This has direct implications for property transactions, prices, and overall real estate market statistics.
Official data on property sales, prices, and rental yields in Western Sahara is scarce and fragmented, largely because the region is not recognized as a distinct economic jurisdiction and Moroccan authorities aggregate most economic reporting under southern provinces. According to the most recent regional statistics from the Haut-Commissariat au Plan du Royaume du Maroc, the provinces comprising Western Sahara (notably Laâyoune-Sakia El Hamra and Dakhla-Oued Ed-Dahab) have experienced moderate growth in construction and urbanization since 2020, driven by Moroccan public investment in infrastructure and economic incentives.
- Sales Volume: Official transaction volumes are not published separately for Western Sahara. However, Moroccan government investment programs, such as those reported by the Ministère de l’Intérieur du Royaume du Maroc, have spurred residential and commercial development, particularly in Laayoune and Dakhla.
- Property Prices: Price transparency is limited. Anecdotal evidence and indirect data from Moroccan real estate listings suggest that property prices in Laayoune and Dakhla are significantly lower than in Casablanca or Rabat, but have been rising since 2021—estimated annual increases of 3–5% in urbanized zones, according to figures collated by Haut-Commissariat au Plan du Royaume du Maroc.
- Rental Yields: There is no official data on rental yields, but the influx of public sector workers, business migrants, and the growth of tourism in Dakhla have supported rental demand. Yields are believed to be higher than in northern Morocco, potentially reaching 7–9% in prime areas, as inferred from localized Moroccan rental platforms and investment incentives published by Région Dakhla-Oued Ed Dahab.
Looking ahead to 2030, continued Moroccan investment and policy incentives are likely to support moderate growth in sales and property values in urban centers, although legal and investment risk will persist due to the unresolved international status of the territory. Investors and property owners should closely monitor developments in Moroccan administrative law and any UN-led negotiations, as these could have direct impact on property rights and market stability (United Nations).
Major Projects, Infrastructure, and Urban Development Initiatives
The landscape of real estate in Western Sahara is deeply shaped by the region’s unique geopolitical status and ongoing territorial dispute. As of 2025, Moroccan authorities continue to administer a majority of the territory, implementing ambitious urban development and infrastructure projects intended to accelerate economic integration and attract investment. These initiatives are primarily centered in major cities such as Laayoune, Dakhla, and Boujdour, which have seen significant public funding for real estate and infrastructure since the launch of the “New Development Model for the Southern Provinces” in 2015.
By 2025, cumulative investments in infrastructure and urban development in the Moroccan-administered areas of Western Sahara have surpassed 85 billion Moroccan dirhams (approximately USD 8.5 billion), according to the Moroccan Government. Key projects include the ongoing construction of the Dakhla Atlantic Port, which is expected to transform Dakhla into a regional logistics and commercial hub upon its completion in 2028, catalyzing both commercial and residential real estate demand. In Laayoune, urban expansion projects have focused on new residential districts, public facilities, and industrial zones, supported by substantial upgrades to road, water, and energy infrastructure.
These developments are governed and regulated according to Moroccan law, with real estate transactions, land registration, and compliance frameworks overseen by Moroccan authorities. The Ministry of Justice of Morocco and the National Agency for Land Registry, Cadastre and Cartography are responsible for property rights documentation and legal compliance in these areas. However, the legal status of such transactions remains internationally disputed, as the territory is classified as “non-self-governing” by the United Nations, and no broad international recognition exists for Moroccan sovereignty over Western Sahara (United Nations Decolonization).
From a compliance perspective, international investors must navigate complex legal and reputational risks. While Moroccan law is enforced on the ground, the lack of international consensus and ongoing dispute with the Polisario Front (recognized by some countries as the legitimate representative of the Sahrawi people) may impact the enforceability of property rights and future real estate claims. Despite these challenges, official statistics indicate growing urbanization: for example, Dakhla’s population has increased by over 20% in the past decade, driving sustained demand for housing, retail, and tourism-oriented developments (High Commission for Planning of Morocco).
Looking ahead to the next few years, the outlook for major projects and urban development in Western Sahara will remain closely tied to the regional political situation and the pace of Moroccan-led investment. Should the current trajectory of infrastructure expansion continue, real estate in Western Sahara is likely to experience further growth, particularly in the tourism, logistics, and residential sectors. However, legal uncertainty and the contested status of the territory are expected to remain significant factors influencing both domestic and international investor participation.
Risks, Challenges, and Geopolitical Considerations
The real estate sector in Western Sahara faces unique and substantial risks, challenges, and geopolitical uncertainties, which are expected to persist through 2025 and beyond. The territory’s disputed political status significantly affects property rights, investment security, and regulatory oversight. Western Sahara is recognized by the United Nations as a non-self-governing territory, and its sovereignty is contested between the Kingdom of Morocco—which administers approximately 80% of the region—and the Sahrawi Arab Democratic Republic (SADR), backed by the Polisario Front. This unresolved dispute has direct implications for real estate transactions and development.
Legal clarity is a primary risk. Moroccan authorities apply national real estate law in the areas under their control, issuing property titles and facilitating transactions according to Moroccan legal frameworks. However, these titles are not universally recognized, and international organizations, including the United Nations, caution investors about the lack of internationally recognized sovereignty. This ambiguity creates compliance risks, especially for foreign investors subject to their home countries’ legislation on dealings in disputed territories. Notably, the Court of Justice of the European Union has ruled that agreements between Morocco and the EU do not automatically apply to Western Sahara, underlining the territory’s distinct legal standing.
Economic and operational challenges are also pronounced. According to data from the Haut-Commissariat au Plan (Morocco’s official statistics office), population growth and urbanization in Dakhla and Laâyoune have driven local demand for housing and commercial space. Yet, international financing and insurance providers often exclude Western Sahara from their coverage due to political risk, limiting large-scale development and mortgage availability. The legal status of land and property remains a barrier to international investors, who face potential sanctions or legal action in their jurisdictions if found violating international law or home-country regulations on trade with occupied territories.
- Compliance with anti-money laundering and anti-terrorism financing regulations presents ongoing challenges due to limited formal oversight and the complex legal environment (Bank Al-Maghrib).
- Disputes over land tenure, particularly for land historically used by nomadic populations, further complicate title verification and transfer processes (Ministry of Justice, Kingdom of Morocco).
Looking ahead to 2025 and the following years, the outlook for real estate in Western Sahara remains dependent on the evolution of the political situation. Unless a mutually recognized resolution is achieved, legal and compliance uncertainties will continue to curb foreign participation and raise due diligence requirements for all market actors. Investors are advised to closely monitor developments from both Moroccan authorities and international bodies to navigate the evolving landscape.
Future Outlook: Market Forecasts, Opportunities, and Strategic Recommendations
The real estate sector in Western Sahara remains one of the most complex and politically contingent markets in North Africa, primarily due to its unresolved legal status and ongoing territorial dispute. As of 2025, the region is administered de facto by Morocco, which continues to implement its urban planning, land registry, and property laws, although these frameworks are not recognized internationally as legitimately extending to Western Sahara. This has significant implications for property rights, investment security, and the broader market outlook.
Recent Moroccan government initiatives have included infrastructure expansion and incentives to attract both domestic and Moroccan diaspora investment into the housing and commercial sectors in cities like Laayoune, Dakhla, and Boujdour. According to official data, the Ministry of National Territory Planning, Urban Planning, Housing, and City Policy has reported ongoing projects in urban development and affordable housing, supporting population growth and migration to these urban centers (Ministry of National Territory Planning, Urban Planning, Housing, and City Policy). These efforts are expected to underpin moderate growth in demand for residential and commercial property through 2025 and beyond.
However, there are persistent barriers to large-scale foreign direct investment and international financing. The United Nations does not recognize Moroccan sovereignty over Western Sahara, and UN Security Council resolutions continue to classify the territory as non-self-governing (United Nations Department of Political and Peacebuilding Affairs). As a result, major international institutions and multilateral banks generally restrict formal investments in real estate and infrastructure within the territory. This legal ambiguity exposes investors to potential compliance risks, including possible challenges under international law or future restitution claims.
For Moroccan and local investors, the regulatory environment is expected to remain stable as long as Moroccan administrative control persists. The General Directorate of Taxes has confirmed that standard Moroccan tax policies and land registration procedures are applied in Western Saharan towns (General Directorate of Taxes). Nonetheless, these transactions may not be recognized in the event of a change in sovereignty or legal status.
Looking ahead, market opportunities center on urban expansion, tourism infrastructure (especially in Dakhla), and logistics, contingent on political developments and ongoing Moroccan investment. Strategic recommendations for investors include conducting enhanced due diligence, monitoring geopolitical developments, and preparing for potential legal contingencies. Engagement with local authorities and adherence to Moroccan regulations are essential for operational compliance, but international stakeholders should remain vigilant regarding the evolving diplomatic context.
