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Amman Real Estate Sector
The
Kingdom of Jordan has been witness to an unprecedented
boom in real estate, with total investment in the sector
over the past five years estimated at over JD 15
billion. Trading in the sector last year reached JD 4.9
billion, comprising almost half of the Gross Domestic
Product (GDP), compared to JD 3.5 billion and JD 2
billion in 2005 and 2004 respectively. This figure is
expected to reach JD 6 billion this year.
The
Jordanian Real Estate market was affected significantly
by the political turmoil and economic boom in recent
years, instigated by the September 11th terrorist attack
on the United States which compelled Arabs to relocate
their investments closer to home, followed by the influx
of thousands of Iraqis during the second Gulf war,
alongside the rising oil prices that produced an
abundance of liquidity in the gulf states, inducing many
capital owners to invest in Jordan. The unrivalled
activity in trading in real estate and property in
Jordan, in addition to the initiatives by the government
to encourage investment, and the relatively cheap
Jordanian labor, drove local, Arab and foreign investors
to divert their investment attention to the Kingdom.
While investment has been wide-spread across the
Country, the lion’s share of investments has been
claimed by the capital Amman, the Dead Sea and Aqaba.
Real estate has a direct impact in supporting the growth
of other economic sectors, particularly the construction
sector, which has a spill-over effect to other areas of
the economy, creating job opportunities and generating
demand for other supporting industries, such as steel,
cement, wood, glass, aluminum, to name a few.
It also
has a bearing on the financial services sector, with
opportunities arising for banks to offer financing to
real estate companies and contractors, in addition to
providing retail facilities in the form of mortgages for
the purchase of land and property.
Unsurprisingly, there has also been a distinct
correlation between the real estate market and the
capital markets, due to the large number of real estate
companies that are listed on the stock exchange. In
2006, the volume traded on real estate sector companies
represented over 30% of the Amman Stock Exchange’s total
trading activity.
The strong
demand on real estate in the Kingdom has led to prices
of land and property multiplying to levels no longer
affordable by the average Jordanian, thereby driving
locals to relocate to the outskirts of the city, which
were once remote barren areas, where prices remain
slightly lower than the Capital.
Estate
Agents are keenly awaiting the summer months, where
demand for real estate is expected to broaden further as
a consequence of the return of Jordanians living abroad
for the holiday, the onset of the tourist season, and
the arrival of visitors from the Gulf states, wishing to
escape the summer heat in their own countries.
Expectations in the market are that the real estate
market in Jordan will continue to advance and develop,
particularly due to the fact that prices in the Kingdom,
despite the hefty increases, remain below the price
levels of attractive investment areas in the Gulf,
Lebanon and Egypt.
*Courtesy
Arab Banking Corporation
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About
the conference
In view of
the above report, an urge to gather professionals from
various real estate market segments together has
emerged. Credit & Finance Experts, Realtors, Planners &
Strategists, Project Owners, Operators, Leasing and
Financing Firms, Banking Professionals and overall
Policy Makers will meet and discuss trends,
opportunities, limitations and impacts of this ever
growing vital economic sector.
About
the Exhibition
Project
owners, builders, contractors, real estate agents, real
estate financiers, banks, financial consultants,
investors, venture capital vendors will exhibit their
products and services to a demanding public - See Profile
Who
will Attend:
Investors,
financiers, operators, project management firms,
consultants and individual property buyers.
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![[Jordan]](http://www.eng-forum.com/JHRE/images/jo.gif){kind=small}