Jordan’s Residential Property Market Set to Rebound

تم نشره في Sun 27 November / Nov 2016. 01:00 AM
  • Abdali, Amman, Jordan 3D

CAPITALS —Al Ghad— An Oxford Business Group report on Jordan’s residential real estate market estimates that increased economic growth and new projects coming on-line could see demand rise in the Kingdom’s domestic property market, as the International Monetary Fund (IMF) predicts a 2.8 per cent GDP growth rate in 2016.

The IMF report outlines an expected 4 per cent GDP growth by 2019, which may boost property sales following a 2 per cent year-on-year (y-o-y) contraction in sector sales, at an annual turnover of JOD7.61 billion.

Cautionary factor

Department of Lands and Survey (DLS) reported that government revenue from real estate sales declined 11 per cent to JOD377 million (USD531m) last year, with the value of exemptions increasing by 47 per cent to JOD120 million (USD12.3m).

In the first half of 2016, revenues were down by 10 per cent y-o-y to JOD164.3 million (USD230m), suggesting that state levies may fall short of the amount generated last year.

Breakout tipped for next year

Though sales may be down this year, a resurgence in the market could be fuelled by an expected rise in economic activity.

Demand in the Amman market – where 42 per cent of the Country’s population of 9.5m reside, and 72 per cent of the country’s real estate trade takes place – could also stimulate growth.

There should be a gradual unlocking of the residential market next year, according to Omar Zghayer, CEO of real estate developer Akoya Properties, who predicts an increase in investment in the coming year.

“The market will perform better in 2017 because several real estate projects will be done by then,” he told the Oxford Business Group in interview. “There is more demand than supply for residential units in Amman.”