Detailed explanation
In real estate DCF valuation, the WACC is the discount rate applied to future cash flows. A typical 2026 Moroccan real estate WACC breaks down as: risk-free rate (Moroccan 10Y bond ~3.5%), plus real estate premium (3-4 points), plus equity premium for asset specifics (2-3 points). Prime office 8.5-9.5%, secondary office 9.5-10.5%, industrial 10-11%. Choice of WACC materially affects DCF outcome — a 50 bps change can move Market Value by ±5%.
Moroccan example
Our Hay Riad Rabat office DCF uses WACC 9.0% (risk-free 3.5% + property premium 3.0% + equity 2.5%). At 9.5% WACC, the MV would drop from 121 to 115 M MAD.
Related terms
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