Economic challenges, rising interest rates hit Kingdom’s real estate sector - stakeholders

AMMAN — The local real estate sector saw a trading volume of JD4.447 billion in the first eight months of 2024, according to a recent report by the Department of Land and Survey (DLS). 

The report indicated a 4.5-per-cent decline in trading volume compared with the same period last year.

The report also showed that real estate trading dropped by 4 per cent in August, amounting to JD709.686 million.

Revenues from the sector also fell by 5 per cent compared with the same period in 2023, totalling JD167.557 million.

The DLS Branch of North Amman recorded the highest revenues, reaching JD25.352 million, followed by the Amman DLS with JD22.792 million.

Mahmoud Salah, a land developer, told The Jordan Times that the latest data from the DLS showed a significant decline in property transactions, particularly for non-Jordanians, adding: "Sales of apartments have dropped by 16 per cent during this period." 

Salah also said: "We've been witnessing a major slowdown in the market, and now the reports confirm it." He attributed the drop to several factors, including economic conditions, rising interest rates, and the ongoing regional conflicts.

Rateb Tawfiq, a land developer and investor, pointed out that during slowdowns, Jordanians typically refrain from purchasing real estate, but this time, non-Jordanians' purchases have also seen a "noticeable" decline. 

"However, developers might offer attractive deals during this period, which could encourage potential buyers," he said.