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Regional Statistics

Last Updated: May 30, 2016

Excessive bureaucracy and irrational regulations keep Amman under-housed - and the poor, the middle class, and the refugees suffer.   As a band-aid solution,  new incentives put in place in July 2015 have boosted the market, despite lack of broader reform.  Real estate prices rose 3.3% in 2015, according to the Central Bank.
  • Apartment prices were up 2%
  • Villa prices increased by 1.6%
  • House prices declined by 0.1%
  • Land prices rose by 4.6%

More important, transactions rose significantly in the later part 2015. In December, 10,398 transactions were recorded, up 13% compared to December 2014. In the first quarter of 2016, 32,278 transactions were registered, up 45.1% compared to the same period in 2015, according to the Department of Land and Survey (DLS).  A total of 2,769 building licenses were issued in January 2016, up 23.8% compared to the same month in 2015, according to DLS. Of which, 80.9% were for the construction of residential buildings - approximately 744,000 sq.m. of licensed residential building space, up 8.7%.

The July 2015 incentives mean:
  • No registration fees for the first 150 square metres (sq.m.) of apartments up to 180 sq.m;
  • Registration fees and tax levied on properties of all sizes, halved to 5%.
  • Non-Jordanian investors exempted from fines related to delayed investments.

Around 23,585 transactions for the purchase of land (6,041 of which were transacted in the capital, Amman) took place in Q1 2016, and 8,693 for residential buildings (5,767 of which were transacted in the capital). These transactions amounted to JD1.6 billion, up 0.3% compared to Q1 2015. Around 66% of residential building transactions and 26% of land transactions in Q1 2016 were registered in Amman.

The concentration in the capital is not at all surprising given the city’s huge share of the country’s population and economic activity. Around 42% of the country’s population of 9.5 million people reside in Amman.

But new housing developments in the capital are being squeezed by high land prices, according to Jordanian Housing Developers Association (JHDA) president Kamal Awamleh. Furthermore, the Greater Amman Municipality (GAM), which oversees private and public construction, is rife with red tape.

Red tape has become so problematic that the JHDA recently called on investors to suspend buying real estate and freeze their transactions with GAM for a month. This should prove the sector’s major impact on the municipality and the national economy, according to Awamleh.

He warned that housing developers could relocate to other countries, including the United Arab Emirates, Turkey, Egypt and Morocco due to simpler procedures and stable investment laws. In fact, more than 150 housing companies have left the market in 2015, according to JHDA council member Daoud.

GAM, on the other hand, asserts that any delays are due to disputes or failures to meet the official standards. Procedures should only take 12 days maximum if the building license transaction meets terms and conditions. Normally, around 80-85% of transactions are approved.

Jordan’s property market is expected to recover further with a steady rise in prices. Interest rates have been declining and loans to the construction industry have been on a steady rise.

Jordan's economy grew 2.4% in 2015 and is projected to grow by 3.2% in 2016 and by 3.7% in 2017, according to the IMF. Inflation declined 0.9% in 2015, and is expected it to remain low at 0.2% in 2016.

Analysis of Jordan Residential Property Market »

Last Updated: Sep 28, 2016

Property prices. Typically, it costs around US$1,500 per square metre to buy an apartment in Jordan’s capital Amman – less at the lower end, more for larger apartments, according to our sample (though this may not apply to the very smallest apartments).

Property rents.  Rental rates in Amman are rather high, due no doubt to the large number of refugees who have poured in to the country.  Smaller apartments yield significantly more than larger apartments.

Property returns.  Gross rental yields on apartments in Amman are good.

Yields on villas are somewhat lower.  We researched villas in previous years but this year were unable to gather data. The lower yields are because villas tend to cost substantially more on a per square metre basis, because of the land value.

Property buying costs.  Round trip transaction costs on the purchase of residential property in Jordan are moderate to high, especially in comparison with the rest of the Middle East. See our Jordan residential property Buying Guide and Residential property transaction costs in Jordan compared to the rest of the Middle East.

Read Rental Yields  »

Last Updated: Mar 03, 2016

Rental Income: Rental income is considered business income and is subject to corporate income tax at a flat rate of 20%.

Capital Gains: Capital gains are generally not taxed in the country.

Inheritance: There are no inheritance taxes in Jordan.

Residents: Residents are taxed at progressive rates.

Read Taxes and Costs  »

Last Updated: Mar 04, 2016

Roundtrip transaction costs are around 7.94% to 12.94%. Registration fee is levied at 3% to 8%, the applicable rate varies depending on the status of the buyer and property size. Both parties equally share the real estate agent’s fee of 4%, which is subject to a 16% Goods and Services Tax (GST).

Read Buying Guide  »

Last Updated: Jan 01, 1970

Rents are paid a year in advance in Jordan

Jordan luxury residential housesRent: Since most rents are paid a year in advance, deposits are not required.

Tenant Security: The typical lease contract lasts a year, with an option to renew. Although leases with shorter terms are also allowed in Jordan, such contracts have higher rents (the one-year contract of lease, under Jordanian law, cannot be broken).

Read Buying Guide  »

Last Updated: May 30, 2016

Regional traumas impinging on growth

The chaos in Syria and Iraq continues to hurt Jordan’s exports, tourism, and overall economic performance. GDP growth was 2.4% in 2015, below the IMF’s earlier forecast of 2.9%.
Jordan gross debt
The World Bank (WB) warns that a deterioration in regional stability would undercut continued growth.  Lower remittances, exports and foreign direct investments are also seen as risks, according to the WB and IMF.

“Economic growth this year is not going to be at comfortable levels. It will be below expectations,” says Finance Minister Omar Malhas.

Jordan GDP inflationHowever, WB notes that Jordan’s plan to secure an Extended Fund Facility (EFF) with the IMF could support further fiscal consolidation efforts to back “growth-enhancing and job-creating structural reforms.”

With the EFF, the IMF will deposit USD 700 million to USD 800 million in the Central Bank of Jordan, on condition that Jordan reduces public debt as a percent of GDP from 93% currently to 80% by 2021.

The IMF expects Jordan’s economy to expand by 3.2% in 2016 and 3.7% in 2017 – both lower than government projections.

Inflation in 2015 was -0.9%, owing to a decline in food and fuel-related prices. The IMF expects it to remain low at 0.2% in 2016.

  • High yields in Amman
  • Rents paid 1 year in advance
  • Moderate buying costs
  • Low effective rental income tax rates
  • Minor buying restrictions
  • GDP growth has historically been weak
Price (sq.m): $1,415 For a 120 sq. m. property, usually an apartment.
Rental Yield: 8.13% For a 120 sq. m. property, usually an apartment.
Rent/month: $1,439 For a 120 sq. m. property.
Income Tax: 15.00% Assumptions: Owners are a non-resident couple drawing US$ / €1,500 per month in rent, with no other local income.
Roundtrip Cost: 10.94% The total cost of buying and then reselling an apartment. Includes:

* all transaction taxes and charges:
* lawyers' and notaries' fees
* agents' fees

Assumptions: The buyers are non-resident foreigners. The apartment cost US$250,00 / €250,000.
Cap Gains Tax: n.a. Assumptions: The property was bought for US$250,000 / €250,000, and sold 10 years later, after a 100% appreciation.
Landlord and Tenant Law: Pro-Landlord Rating is based on a detailed study of each country’s law and practice.

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