Price stability continues across the Jordanian property sector, which is showing positive activity in both apartment and villa sales and leasing, according to Asteco Property Management’s Q2 2011 report.
“Despite regional political conflict, Jordan has remained consistent economically. Government statistics indicate the property sector has played a substantial role in this ongoing stability, indicating a 42% increase in all property and land transactions over the quarter.
Rental prices for two-bedroom apartments ranged from JOD3,000 and JOD13,000 per annum, with three-bedroom rentals ranging from JOD6,000 to JOD24,000, with an average increase of 3%.
Despite relatively little change across Jordan’s apartment rental sector, the average up shift was the result of increases in certain areas. Abdoun saw rental prices increase by 4% over the quarter, led by a limited supply of buildings. The Asteco report attributed this largely to the premium location’s A+ zoning, meaning the majority of residential developments are villas with a maximum height of three-storeys.
The shortage of properties here has also contributed to rental price increases of 5% over the quarter in the nearby Der Ghabar area.
Roads infrastructure development in these areas is also having an upward impact on leasing prices, with the construction of a new ring road connecting both areas to the Airport Road and the Dead Sea Highway.
A few areas recorded price increases over the quarter. Leading this sales price growth were Al Rabiah and Der Ghabar, both up 9%, followed by Sweifieh, which saw 3% price increases over the quarter.
In apartment sales, Sweifieh saw a 6% increase in higher-end unit sales, with prices ranging from JOD765 to JOD950 per square metre. Close to the Abdoun and Der Ghabar areas, limited land availability and a strong retail district add to the appeal of Sweifieh.
“Jordan’s decision to pursue membership of the Cooperation Council for the Arab States of the Gulf is also a positive development that should further enhance confidence in its economy, combined with news of Saudi Arabia’s US$400 million grant,” added Jones.
Jordan’s office rental market continues to remain stable, with supply continuing to outstrip demand, but strong competition in some areas, particularly among tenants looking for smaller office space of between 100 and 130 square metres. Average office rental rates remained unchanged from last quarter, at JOD113 per square metre in Um Othainah, JOD105 per square metre in Mecca Street down to JOD93 per square metre in Madina Monawarah Street.