Rental rates in Jordan experienced no significant changes during Q2 2013, according to the latest quarterly real estate report for the Kingdom, released by leading UAE-headquartered property management company Asteco.
Q2 2013 performance for one to three-bedroom apartments in popular residential areas in the capital, Amman, was flat, with Sweifieh recording a 2% rise (4% year-on-year) followed by Abdoun at 1% (3% year-on-year).
Abdoun also saw average rents for a three-bedroom unit rise to JOD 16,500, matching the annual rental rate in 4th Circle, one of the city’s most sought-after residential district.
The Asteco report attributed the slight increases in demand for two and three-bedroom units in Sweifieh and Abdoun, to their close proximity to retail and entertainment opportunities.
“Apartment sales prices across Amman also experienced an average 2% quarter-on-quarter increase due to rising land prices, which has prompted developers to pass on the higher costs directly to buyers,” said Hussein Safadi, General Manager, Asteco Jordan.
Areas such as Abdoun, Al-Rabiah and Der Ghabar saw rates grow by 2%, 6% and 2% respectively with overall prices rising by 9% compared to the same period last year.
There was little Q2 2013 movement in the office sector with stable office rental rates due to limited market demand, abundance of supply and resulting competition.
Year-on-year figures revealed a noticeable drop in Madina Monawarah Street of 11% and a fall of 5% in Sweifieh, while the rest of the office market experienced an across-the-board dip of around 3%.
The report also noted that the asking sales prices for commercial properties have increased as the rising cost of construction materials and land has forced developers to review their margins.
Although there was little or no change in Q2 2013, office sales prices have appreciated by 6% in Shemeisani compared with the same period last year. However elsewhere, the office sales market was relatively flat, only Wadi Saqrah and Sweifieh recorded increases of 3%.