Key points: Expropriation for public purpose is the procedure by which the State or a local authority compels an owner to surrender his property for a project of general interest. In Morocco, it is governed by Law 7-81enacted on 6 May 1982. This guide details each step of the procedure and the owner's rights.
1. Legal framework: Law 7-81 on expropriation
Law 7-81 on expropriation for public purpose and temporary occupation forms the legal bedrock of expropriation in Morocco. Enacted by dahir no. 1-81-254 of 6 May 1982, it establishes the conditions under which the State, local authorities or public institutions may proceed with the compulsory acquisition of private real estate.
The text sits within the Moroccan constitutional framework, notably Article 35 of the 2011 Constitution, which guarantees the right of property while providing for its limitation for public purpose. Law 7-81 organises two distinct mechanisms: expropriation proper (definitive transfer of ownership) and temporary occupation (temporary deprivation of use).
Its provisions are supplemented by implementing decree no. 2-82-382 of 16 April 1983 and by abundant case law of the Court of Cassation, notably on the setting of the indemnity. In 2025, a draft reform was submitted to the General Secretariat of the Government to modernise this legislative framework, now more than four decades old.
2. Conditions of expropriation: public purpose and necessity
Expropriation may only be pronounced when two cumulative conditions are met: the existence of a project of public purpose and the necessity of acquiring the targeted property to carry out that project. Article 2 of Law 7-81 lists the operations that may justify a declaration of public purpose.
Infrastructure projects
Construction of roads, motorways, railways, ports, airports, dams and hydraulic works. These projects make up the majority of expropriation cases in Morocco.
Public facilities
Hospitals, schools, barracks, cemeteries, municipal markets and any building assigned to a public service. Public purpose is generally recognised without dispute.
Urban development
Development plans, restructuring of neighbourhoods, creation of industrial or tourist zones. Public purpose must be verified case by case by the administrative judge.
Safeguarding operations
Protection of historical heritage, prevention of natural hazards (flooding, landslides). Urgency may justify an accelerated procedure.
The review of public purpose is exercised by the administrative judge, who verifies that the project invoked genuinely corresponds to a general interest and that the acquisition of the property concerned is necessary to carry it out. Moroccan case law has progressively strengthened this review by requiring a direct link between the targeted property and the project declared of public purpose.
3. Administrative procedure: from the declaration to the parcel survey
The expropriation procedure unfolds in two successive phases: an administrative phase and a judicial phase. The administrative phase comprises the declaration of public purpose and the parcel survey.
The declaration of public purpose (DUP)
The procedure begins with an administrative act — decree or order depending on the importance of the project — which declares the public purpose of the projected works and designates the zone concerned. This act is published in the Official Bulletin and posted in the premises of the municipality concerned. Publication triggers a two-year period within which the procedure must be carried through to its end, failing which the DUP lapses.
The parcel survey
The parcel survey is intended to identify the owners and holders of real rights over the buildings located within the expropriation zone. It is opened by an order published in the Official Bulletin and gives rise to a register deposited at the municipality for a period of two months, during which any interested party may submit observations.
At the close of the survey, the administration establishes the final list of parcels to be expropriated and the owners concerned. It is at this stage that the attempt at amicable transfer is initiated: the expropriating authority proposes a price to the owner, based on the administration's estimate.
If the owner accepts, an amicable transfer deed is signed before a notary and the transfer of ownership is registered in the land registers. If the owner refuses the offer — which is frequent when the amount proposed is below the property's real value — the procedure moves to the judicial phase.
4. Judicial procedure and transfer of ownership
If the amicable transfer fails, the administration files with the court of first instance to obtain the pronouncement of the transfer of ownership. The judge verifies the regularity of the administrative procedure (publication of the DUP, compliance with deadlines, conduct of the parcel survey) before pronouncing the transfer.
The judgment of transfer of ownership produces a dual effect: it transfers ownership of the property to the expropriating authority and it sets the amount of the indemnity due to the owner. The judge generally orders a judicial appraisal to determine the market value of the property, which is a decisive moment in the procedure.
The transfer of ownership only becomes definitive after the consignment of the indemnity set by the judge. The expropriating authority must consign the amount with the Caisse de Dépôt et de Gestion (CDG) before taking possession of the property. This guarantee protects the owner against being dispossessed without consideration.
The judgment may be appealed before the Court of Appeal, both on the regularity of the procedure and on the amount of the indemnity. The appeal is not suspensive: the expropriating authority can take possession of the property as soon as the consignment is made, even if the owner challenges the amount before the appeal court.
5. Indemnity: calculation and challenge
The expropriation indemnity is the consideration for the deprivation of property. Article 20 of Law 7-81 lays down the principle of a fair indemnity, covering the entire direct, material and certain loss caused by the expropriation. The indemnity cannot be lower than the real value of the property on the date of the judgment.
Criteria for calculating the indemnity
- ▸Market value of the property: the price at which the property could be sold on the open market at the date of the judgment.
- ▸Increase or decrease in value resulting from the announcement of the project (not taken into account, to avoid speculation).
- ▸Reinvestment indemnity: costs the owner will incur to acquire an equivalent property (registration duties, notary fees).
- ▸Commercial or professional loss: loss of turnover, relocation costs, loss of goodwill for commercial premises.
- ▸Indemnity for loss of harvest: applicable to agricultural land, calculated on the basis of the average annual yield.
In practice, the amount proposed by the administration is often below the real market value. The owner has every interest in producing an independent real estate appraisal to challenge the administrative offer. The Court of Cassation has confirmed on several occasions that the judge must set the indemnity on the basis of the real market value and not on the declared fiscal value.
The challenge to the amount may be brought on appeal, where the owner can request a counter-appraisal. Moroccan courts increasingly accept appraisal reports compliant with international standards (RICS, IVS), which strengthens the credibility of the valuation produced by the owner.
6. The role of the real estate expert in expropriation
The real estate expert intervenes at several stages of the expropriation procedure. His role is decisive in ensuring that the owner receives a fair indemnity, reflecting the real value of his property on the market.
Amicable phase
The expert assesses the property's market value before the negotiation with the administration. His report gives the owner a solid figured basis to accept or refuse the administrative offer. An independent appraisal compliant with RICS (Red Book) standards can reveal a gap of 30 to 60% between the State's offer and the real market value.
Judicial appraisal
The judge often appoints a judicial expert to assess the property. The owner can request a counter-appraisal if he considers the judicial valuation insufficient. The report of a RICS-certified expert constitutes a weighty argument before the court.
Appeal and cassation
In case of an appeal on the amount of the indemnity, the real estate expert can update his valuation to take into account the evolution of the market between the date of the first judgment and the date of the appeal decision. The Court of Cassation has validated this approach.
Strategic advice
Beyond the valuation, the real estate expert advises the owner on the strategy to adopt: accept or refuse the amicable transfer, heads of loss to include in the indemnity claim, opportunity to challenge the DUP itself.
Frequently asked questions about expropriation in Morocco
What are the legal conditions for an expropriation to be declared in Morocco?
Expropriation may only be pronounced for a public purpose, established by an administrative act (decree or order) published in the Official Bulletin. The project must serve the general interest: infrastructure, public facilities, urban development. The declaratory act is subject to review by the administrative judge.
How is the expropriation indemnity calculated in Morocco?
The indemnity must cover the entire direct, material and certain loss. It is calculated on the basis of the market value of the property on the date of the judgment, increased by the reinvestment indemnity and, where applicable, by the commercial loss or the loss of harvest. An independent real estate appraisal is often decisive.
Can a public-purpose expropriation be challenged in Morocco?
Yes. The owner can challenge the DUP before the administrative court (absence of a real public purpose, procedural defect) and the amount of the indemnity before the court of first instance and then on appeal. An independent appraisal compliant with RICS (Red Book) standards significantly strengthens the owner's position.
What is the role of the real estate expert in an expropriation procedure?
The real estate expert assesses the property's real market value, produces a report compliant with RICS / IVS standards, assists the owner in the amicable phase and provides an adversarial report usable before the court. His intervention can represent a difference of several hundred thousand dirhams on the final indemnity.
Is your property subject to an expropriation?
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This guide describes the general framework of Law 7-81 and does not constitute individualised legal advice; the conditions, deadlines and remedies are assessed under the texts in force and the interpretation of the courts — be assisted by a lawyer for your situation. To document the real market value of your property, get it valued by our independent RICS appraisal service and browse more analyses on the ReaConsult blog.