Jordan: Price History

Country Rating  »

Home ›  Middle East ›  Jordan ›  Price History

Property prices continue to surge

Jordan’s economic position has been transformed over the past few years. The real estate sector has led the boom, but the side-effects have rippled through the economy, inspiring consumer spending and new malls.

Amman is increasingly seen as a good place to do business, a country which offers stability and security in an otherwise troubled region. Jordan’s opening to the sea, Aqaba, is experiencing an enormous investment boom.

Jordan’s economic boom has been caused by:

• The misfortunes of Jordan’s neighbours, leading to immigration from Iraq and from Lebanon.
• Increased wealth in the region due to higher oil prices.
• Economic reform at home. Jordan is upgrading infrastructure, including a 25-year plan to develop an extensive network of main roads across Jordan, and a light railway link from Amman to the industrial city of Zarqa. An enormous project to completely re-structure Aqaba and its port is well underway, opening up enormous investment opportunities on the Dead Sea.

The result has been very substantial increases in property prices. Yet rental returns, for instance in Amman’s upscale areas such as Abdoun, Deir Ghbar, Sweifieh, Rabia and Jabal Amman, which are popular with foreigners, are excellent.

The Iraqi tragedy has been a boon to Jordan’s property market, in the sense that Iraqis are major buyers of apartments. In 2005, Iraqis accounted for 67% by value of all real estate purchases by non-Jordanians, according to the Department of Land and Surveys. Estimates of the number of Iraqis living in Jordan range from 200,000 to over half a million.

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.

Jordan is not the world’s most exciting country, and Amman has a sedate atmosphere. But it enjoys excellent weather all year round, due to its position on a plateau. In summer, temperatures range from 28 - 35 degrees Celsius (82 – 95 °F), but with very low humidity and frequent breezes. In spring and autumn, the temperature is pleasant and mild. In winter the temperatures at night are often near zero, and it usually snows a couple of times a year.

Prices of Jordanian real estate have risen about 20% over the past year, after rising 10%-30% during the previous year. Land prices have risen by 40% over the past year.

“Traditionally prices of apartments just fell as they got older, till they were worth nothing, just the value of the land,” says Ruba Munir, manager of Abu Judom Real Estate. “But now even old apartments are becoming more expensive. This is the first time this has happened!”

The number of licences issues for buildings has greatly increased since 2,000, as shown by the graph.

Saudis accounted for the largest slice of the real estate area bought by foreigners in 2005, at 28%, followed by Iraqis (17%), Kuwaitis (6%), and Syrians (2%), according to the Department of Land and Surveys.

Amman

Amman’s rapid growth is re-shaping the ancient city into a commercial hub.

Construction of the massive Abdali Downtown development officially started on August 4th, 2007, with the entire project scheduled for completion by February 2010. This new US$1.5 billion development, at the heart of central Amman, offers a glittering new wide pedestrian walkway, with easy access to malls, stores, restaurants, and residential and office buildings.

A focus of the Interim Growth Strategy is that, in exchange for permission to build high rises, developers must provide parkland and recreational spaces at an ‘exchange rate’ of 1 square metre of new parkland, for each 1 square metre of land licensed for the construction of new high rises.

Designated high density mixed use development areas include:

• Abdali, which will feature a new library and performing arts centre, new open grass and tree spaces, plus man-made canals and water fountains. Residential developers include Damac, which is constructing a 35-storey tower.
• The Central Parkway (in the Wadi running northwest to southwest)
• Amman Northern Gateway, in Al Jubayhah, along Jordan Road
• Amman Southern Gateway, along the east side of the Airport Road, south of Abdoun.

Gated Communities

The Jordan Gate business project, now nearly completed, is another example of Amman’s ‘lurch into the future’. Located on the highest hill in Amman, the 220,000 square metre project has two identical towers (which will be Jordan's tallest buildings). Built by Royal Metropolis, the US$1 billion project has been funded by Bahraini and Kuwaiti entrepreneurs.

Retail investment is also coming in, with the expansion of the 65,000-square meter (sq. m) Mecca mall, and a new 160,000-sq. m City Mall, home to Jordan’s first Carrefour Supermarket.

The ‘gated community’ idea has also come to Jordan. Upscale locals are looking for more space to the edges of the city, especially on the road to Queen Alia International Airport, or the 800-villa Andalusia project on the road to Mababa.

Andalusia Village, 24 kilometres south of Amman, was one of the first ‘gated communities’. Built by Tameer Jordan, it will feature 600 two-storey villas, plus indoor and outdoor swimming pools and other community facilities.

Another such development is the Royal Village, at Marj Al Hamam, bordering the Dead Sea highway 15 minutes by car from the city centre More than 1,000 luxury villas and apartments will be built there by Royal Metropolis.

Finally, Greenland Land Residential Estate is building an 880-property project in Mark Al Hamam.

All this has been helped by the arrival of easier mortgage finance. Many leading commercial banks are now offering residential mortgage lending for 15-20 year periods. They usually have Jordanians in mind but are willing to lend to foreigners.

Previously, banks only provided floating rate loans. With the creation of the Jordan Mortgage Refinance Company and the Jordan Mortgage Insurance Company, more diversity is emerging.

Aqaba

The Aqaba Special Economic Zone (ASEZ) on the Dead Sea was launched in 2001 as a duty-free, low-tax, development zone. At first it moved slowly, but now it has gained enormous momentum.

In 2004 the new Aqaba Development Corporation was given control of ports, the international airport and of significant land areas. The current port will be relocated by 2012, freeing prime waterfront property for spectacular development opportunities.

Other ambitious schemes are expected to change the face of Aqaba, and help the city become a major Red Sea resort on the scale of Egypt's Sharm El Sheikh and Hurghada.

• The Tala Bay project, Jordan’s first integrated resort and residential community, which will feature 1,500 residential units and 5 hotels, and is due to open this year. Tala Bay is part of the Aqaba Marine Park and has a 2-kilometre beach front and substantial areas of natural beauty.
• Another project is the Ayla Oasis, a scheme to turn 430 hectares of land into a world-class resort, by creating 75 hectares of man-made lagoons, to add 19 kilometres to Aqaba's otherwise very limited shoreline.

Ayala Oasis will have hotels, 3,000 residential units, and 100,000 square metres of commercial and recreational space – including Jordan's first international-standard golf course. The developers will begin with construction of the Marina Lagoon (the site's gateway to the sea), plus a second lagoon, a canal, the commercial and leisure hub, and a number of waterfront residences.

Then there’s Samarah Dead Sea Golf and Beach Resort, Emaar’s first project in Jordan. Overlooking the Dead Sea, the Samarah Hillside is a 400 acre Mediterranean-style community which will have 850 homes, apartments and villas; a Spa, plus two hotels and a golf course, and of course a retail centre. Construction began in January 2007.

The Aqaba Development Corporation is keen to see both an international school and an American university in Aqaba, and to encourage low-cost airlines from the Gulf and Europe to serve the city.

Jordan - more data and information

• Jordanian house prices, rents, and letting income - real data!
• How expensive are houses in Jordan, compared to the rest of Middle East?
• How much rent can be earned from Jordanian property, compared to the rest of Middle East?

Your Comments

Post a comment