Jordan property makes modest gains in 2012
Amman, February 11, 2013
Rental rates in Jordan for one and two-bedroom apartments remained mostly unchanged in 2012 compared to the previous year, whereas increased demand for three-bedroom units resulted in an average increase of 2 per cent, said a report.
The apartment rents in Jordan rose marginally in selected areas and sales prices rose due to rising energy prices, but overall market conditions are stable, said leading property management company Asteco in its Q4 review.
The rents for one and two-bedroom apartments remained mostly unchanged in 2012 compared to the previous year, whereas increased demand for three-bedroom units resulted in an average increase of 2 per cent, said the Asteco report.
During 2012, apartment rental rates for one and two bedroom apartments remained unchanged whereas increased demand for three-bedroom units in areas such as Abdoun, Um-Othainah, Al-Rabiah, Der Ghabar and 4th Circle resulted in an average increase of 2 per cent.
The 4th Circle remained the most sought after area, with a three-bedroom apartment costing JD16,500 ( ) per annum.
“The demand was predominantly coming from local residents as well as some expatriates looking for medium to large sized apartments in the range of 250 to 350 sq m,” remarked Hussein Safadi, the general manager of Asteco.
According to him, the government's new policy for energy sources including gas, solar, oil and electricity caused increases in sectors such as transportation, construction and raw materials.
This had a direct effect on developers who were forced to review their pricing strategy which in turn resulted in apartment sales prices to increase by 10 and 11 per cent in areas such as Der Ghabar and 4th Circle, while the rest of the market gained 5 to 7 per cent on average, year-on-year to the end of 2012.
The average sales prices per square metre in Abdoun and 4th Circle were the most expensive at JD1,100, while Al-Rabiah remained the most economic at JD850 per sq m, said the Asteco report.
Low demand coupled with increasing supply has resulted in decreasing average office rental rates of 3 per cent compared to the previous quarter. Although there is some interest from local companies the annual average rate of decline in most areas ranged between 2 and 5 per cent.
The exceptions were Um-Othainah which saw average rental prices go up by 2 per cent and Medina Monawarah where rents slipped 11 per cent during 2012.
A stagnant office sales market has resulted in no change for sales prices, with the exception of Wadi Saqrah which witnessed an average sales price increase of 3 per cent during 2012.-TradeArabia News Service