Jordan

In the first quarter of 2011, the average price of apartments in Jordan rose by 3% to JOD950 (US$1,335) per square metre (sq. m), according to Asteco.  The total number of apartments sold rose by 29% to 1,872 units in February 2011, according to the Department of Land Survey (DLS), with land transactions also soaring up 39%. In addition, the total value of property transactions increased 28% to JOD430 million (US$604.3 million) in February 2011.   This is a second year of big rises  in numbers of apartment sold.

Jordan’s property market slowed sharply in 2008 due to the global crisis. House prices fell by about 10% to 15%, according to local real estate analysts. The figures, however, are difficult to verify as no official or unofficial property price indices exist in Jordan.

According to Zuhair Omari, President of the Housing Investors Society (HIS), the real estate market's performance this year has almost returned to the peak levels seen in 2006 and 2007. The strong rebound in the property market is mainly due to the property tax cuts and registration fee exemptions implemented by the government since May 2009.

Jordan’s property market is expected to continue its strong performance as the government tends to introduce new financial packages intended to attract foreign investors. The total value of inbound real estate transactions is expected to exceed JD6 billion (US$8.4 billion) by end-2011, close to figures seen during the boom of 2006 and 2007.

Foreigners can buy housing and land in Jordan, but must not sell within five years.  In the past, permission procedures were lengthy, but now approval can be obtained in just 10 days.

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The Hashemite Kingdom of Jordan is a small constitutional monarchy (pop 6.1 million) situated across from West Bank. Jordan is not an oil rich country (GDP per capita is only US$4,326 in 2010), and has few natural resources.  The country is supported by foreign loans, aid and remittances from abroad. Despite this unpromising premise, Jordan is relatively peaceful compared to other oil-rich neighbors.

Jordan’s economy has been transformed in the last fifteen years. After a devastating banking and exchange rate crisis in 1993 which halved the standard of living of the average Jordanian, the economy has been turned from a state-controlled economy, with highly regulated trade, to a liberal economy with a fast growing export sector, and with a reputation as a place where business can be done (though the state still weighs heavily on the economy). The present King Abdullah, who ascended to the throne in 1999, is said to be a key proponent of these changes.

Jordanian economy was seriously affected by the global financial crisis. Investment from oil-rich Gulf countries dropped. Remittances from expatriate Jordanians also dropped. After growing by an average of 8.3% from 2004 to 2008, real GDP growth slowed to 5.5% in 2009 and 2.3% in 2010, according to the IMF.

The Jordanian economy is projected to grow modestly by 2.5% in 2011, and 2.9% in 2012, due to a huge deficit caused by high energy bills and social spending.

However, due to grants received by Jordan from other countries, Jordan’s fiscal deficit is expected to narrow to 5.3% of GDP this year, from 5.75% of GDP in 2010.

Jordan had an inflation rate of 5% in 2010.  As of May 2011, consumer prices increased 4.6% compared to the same period last year, according to the country’s Department of Statistics.

Jordan’s membership in the Gulf Cooperation Council (GCC) is expected to generate additional investments.  In addition, the five-year development plan initiated by the GCC for Morocco and Jordan will likely improve its job market.

During the first quarter of 2011, the unemployment rate reached 13.1%, up from 12.5% in 2010, according to the Department of Statistics.