Jordan real estate stable in Q2
Amman, July 10, 2013
The average real estate rental rates in Jordan remained stable during the second quarter with minimal increases in sales prices across the apartment sector, said a report.
The rental rates experienced no significant changes during the second quarter with one to three-bedroom apartments in popular residential areas in the capital, Amman, remaining flat, while Sweifieh recorded a two per cent rise (4 per cent year-on-year) followed by Abdoun at one per cent (three per cent year-on-year), according to property expert Asteco
Abdoun also saw average rents for a three-bedroom unit rise to JD16,500 ($23,214), 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 per cent quarter-on-quarter increase due to rising land prices, which has prompted developers to pass on the higher costs directly to buyers,” remarked Hussein Safadi, the general manager of Asteco Jordan.
Areas such as Abdoun, Al-Rabiah and Der Ghabar saw rates grow by 2 per cent, 6 per cent and 2 per cent respectively with overall prices rising by 9 per cent compared to the same period last year, he stated.
There was little second quarter 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 per cent and a fall of 5 per cent in Sweifieh, while the rest of the office market experienced an across-the-board dip of around 3 per cent.
According to Asteco, 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 second quarter 2013, office sales prices have appreciated by 6 per cent 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 per cent," the report added.-TradeArabia News Service