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Jordanian real estate sales recover this year

Jordanian real estate

Amman, (Business News Report)|| The Jordanian real estate witnessed a recovery in sales during the first quarter of this year 2022, in light of the stimulus measures taken by the real estate sector by the government.

According to government data, Jordanian real estate sales rose by 37% during the first quarter of the year, compared to the same period last year 2021.

The volume of real estate sales amounted to 1.41 billion Jordanian dinars in the first three months of 2022.

According to data issued by the Department of Land and Survey and published by the official Jordan News Agency, government revenues from Jordanian real estate sales amounted to 63.1 million dinars ($88.9 million), an increase of 48% compared to 2019.

The figures for the year 2020 are not included in the comparison period, due to the consequences that the Coronavirus pandemic has had on real estate sales in the Jordanian market.

The department indicated that the estimated value of real estate sales to non-Jordanians during the period between last January and March increased by 58% to 76.5 million dinars ($107.8 million).

The government decided last month to reduce the property sale fee by 2% and the property sale tax by 1%, bringing the percentage in total to 6%, starting from the beginning of this month, in order to stimulate the real estate and housing market.

The real estate market faced a major dilemma on the way to recovering from the repercussions of the economic closure. However, sector experts expect that many of the current intersections will push it to a more sensitive point, which may exacerbate its troubles during a longer period than expected.

Before the pandemic, the government entered an uphill battle to move the faltering real estate sector, by approving a package of incentives to encourage companies and investors, which many specialists see as insufficient.

The importance of the real estate market lies in its association with more than 150 vital activities, directly and indirectly, especially building materials, electrical and construction industries, furniture, kitchens, sanitary installations and others.

Over the past decade, Jordanians have suffered from the high prices of apartments and land, which doubled in a way that is not beyond citizen’s purchasing power, even though the Central Bank has repeatedly confirmed that the sector achieved an average growth of 50%.

According to the World Bank, the local real estate market needs about 65,000 new homes annually, but no more than 30,000 apartments are produced amid 80,000 marriage contracts that are executed annually.

Some believe that regional conditions, especially in the Gulf countries, and their repercussions on residents have affected the investment ideas of foreigners in these countries, whether to buy apartments or land.

The local real estate developers are convinced that housing prices are linked to a set of costs that are mainly high, due to the increase in land and the costs and prices of production inputs.

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