Wide price disparity splits Amman’s property market
Prices of residential apartments in western Amman neighbourhoods are almost double those in the eastern part of the capital, according to real estate agents. In remarks to The Jordan Times Wednesday, they agreed that there is a huge price difference between villas and apartments in western Amman, which is the modern and affluent part of the city, and those old and less privileged houses in eastern Amman.
Real estate agent Muna Ameen indicated that house prices in eastern neighbourhoods range between JD50,000 and JD70,000 depending on the size of the unit, while in the western part the value of residential units range between JD100,000 and JD150,000. Asked whether demand is higher on cheaper apartments, she noted that demand in both parts of the capital was almost the same. But Mirna Abdul Raouf, another real estate agent, said demand on residential apartments in western Amman was higher due to the good purchasing power of western Amman residents.
In terms of prices, Abdul Raouf gave an example saying that a 150-square-metre (sq.m) apartment in western Amman is worth about JD110,000, while in eastern Amman the price is around JD50,000. Mahmoud Odwan, owner of a real estate company, attributed the price difference to large gap in the prices of land. Land prices in Jubeiha, north of Amman, is around JD300 per sq.m., JD700 per sq.m. in Abdoun, western Amman, while in the eastern part of the city prices range between JD50 and JD100 per sq. m., depending on proximity to the city centre, according to Odwan.
Mohammad Eliyan, director of a real estate company in western Amman, went further by indicating that property prices in the capital’s western areas even differ from one area to another. Regarding the performance of the real estate market in 2011, specialists agreed that the sector fared well because of the tax and fee exemptions granted to homebuyers. The government decision to exempt property buyers from registration fees and taxes on the first 150 sq.m. of apartments sized 300 sq.m. or less expired at the end of 2011.
- How to avoid turning your dream home into a nightmare
- The Kingdom will sure 'look different' by 2030: Saudi Arabia has 80 mega-projects up its sleeve
- Too pricey? MENA property hikes are off-putting for new buyers
- Fleeing war? UAE is the safe haven: Dubai property market is safe and secure according to a top banker
- CEO of the UAE's top developer, MAF Properties talks money and retail