Jordan apartment rents were mostly unchanged in the first three months of the year compared with the previous quarter, but marginal increases were seen in the Abdoun area due to a lack of availability, according to the Q1 2012 report by leading UAE headquartered property management company Asteco.
Rents were stable following a 7% rise in the last quarter of 2011 due to an amendment to the landlord and tenant law which permitted landlords to increase prices to current market values.
The average rental rate for a three-bedroom apartment in Abdoun was JOD15,250, up 2% from the fourth quarter, while rates in the upper price bracket rose to JOD23,000 from JOD22,000.
“Looking ahead, rental rates may rise due to the demand for short term accommodation from Libyan nationals seeking free medical care in Jordan,” commented Elaine Jones, CEO, Asteco Property Management.
Since the uprising in Libya, a large number of its citizens traveled to Jordan for medical care and initially stayed in hotels and hotel apartments. However, some hotels have now stopped taking bookings from medical tourists and are reserving rooms for leisure visitors during the peak summer holiday season.
Jordan’s sales market saw some improvement in activity in the first three months of 2012 in Abdoun, Sweifieh, 4th Circle and Al-Rabiah due to limited supply and high demand. Local Jordanian families are the primary target market looking to buy in these areas because of the number of retail, entertainment and leisure facilities.
Apartment sales prices rose by 2% in Abdoun to JOD1,075 per square metre in the first quarter from the fourth quarter while prices in Al-Rabiah, Sweifeh and 4th Circle all rose by 3% to JOD825 per square metre, JOD925 per square metre and JOD1,025 per square metre respectively.
Office rentals were mostly unchanged in the first quarter, however rates increased by 4% in Um-Othainah to JOD118 per square metre. The office sales market reported the same rates as the previous quarter, however the starting price of some of the better quality buildings in the Wadi Saqrah area rose to JOD750 per square metre from JOD700 per square metre.