Jordan Property Market Sees Strong Growth
06 August 2011
In the first seven months of 2011 some 3.8 billion dinars ($5.4bn) worth of property transactions were completed in Jordan, a 31% increase compared to last year as demand for apartments in the capital soared according to official data.
"The residential housing market of mainly small apartments ... these are the engines behind the current boom," said Mohammad Afifi, managing partner of Century 21 Jordan, a franchise of the US-based property consultancy.
According to the same department of land surveying data, foreigners purchased 250 million worth of property during the period, a 41% increase on last year. Iraqi buyers led the charge with 154 million dinars, Saudis were the second biggest non-Jordanian investors with 18.8 million dinars worth of property.
Palestinians, expatriate Jordanians and Lebanese buyers were also strongly represented. The report put this down to their seeking a safe-haven in a country with a record of political stability. Jordan has been hit hard by the recent downturn; the aid-dependent country has seen investment inflows from the Gulf Region slow and at the same time falling remittances from its sizeable expatriate workforce.
Experts are predicting further growth in the residential sector in the coming months, particularly in heavily populated urban areas, where growth will be driven by demographic factors. However, the same experts predict that the commercial sector will fare worse for at least the next year owing to oversupply and a sluggish economy.
Analysts report a 20% increase in prime property prices in the capital Amman in the last 18 months, and predict a further 10% growth by the end of this year.