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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 Read Full Report - PDF
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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Download Terms for Participation
MEEF Int'l Event Management
Nasser Center, Gardens Str.,
P.O.B 2390 - 11953 Amman
Jordan
Tel: +962 6 556 2487
Fax: +962 6 556 2486
E-Mail : ARECE@eng-forum.com
Website: www.eng-forum.com/ARECE
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