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Apartment rental rates remained relatively unchanged compared with Q4 2013, as demand levels were steady and no significant new supply was added to the real estate inventory in Amman, according to the latest Asteco Q1 property report for Jordan.
Rental rates for a three-bedroom apartment in Abdoun saw a slight 2% increase compared with Q4 2013, while Um-Othainah witnessed a slight dip of 3% on rental yield during Q1 2014. A three-bedroom apartment in Um-Othainah now rents for 11,625 per annum, while 4th Circle remains the most expensive area, with rents for a similar sized apartment at 16,750 JOR per annum.
In terms of apartment sales prices, Abdoun saw a 13% jump during Q1 2014, where the price per square metre for sought after properties rose to 1,325 JOR per square metre. In contrast sales prices in Sweifieh and Al-Rabiah dropped 6% and 2% respectively during Q1 2014 to 1,100 JOR per square.
“The limited availability of land in certain locations in Amman such as Abdoun, Sweifieh and Der Ghabar resulted in increased apartment sales prices with a quarter-on-quarter rise of 8%, on average, with strong demand for medium sized apartments of between 185 and 250 square metres,” said Hussein Safadi, General Manager, Asteco Jordan.
Office sales prices remained stable in Q1 2014, although Sweifieh witnessed a marginal decrease of 2% due to a large amount of supply waiting to be absorbed. Several areas however did record increases over the year, of which Wadi Saqrah appeared to be one of the most popular locations with sales prices increasing 13% to JOR 1,075 per square metre over this period.
Furthermore, the new business centre in Amman – The Boulevard by Al Abdali Development, is expected to be completed in Q2 2014. The new high quality retail destination, has driven office demand in the area and developers have been able to sell and lease full and half floors from 1,400 to 1,700 JOD per square metre, with rental rates commanding between 130 to 160 JOD per square metre.
"Although we've seen a rise in the sales price for office space, we have witnessed little if no change in rental rates, when compared with Q4 2013 or year-on-year, with supply outstripping demand," added Hussein Safadi, General Manager, Asteco Jordan.
Offices in Um-Othainah attract the highest rental rates in Amman, at 110 JOR per square metre.