Out of reach for many Jordanians

Jordan has been experiencing a real estate boom thanks to heavy investment by Iraqis, Saudis and Syrians.

According to the Department of Land and Survey, the real estate market in the country went up by 26 per cent during the first four months of the year, to reach a total value of JD2.5 billion. The figure for the same period of last year was JD2 billion.

As a result, government’s revenues went up by a whopping 25 per cent during the first four months of this year, reaching JD139.5 million.

Iraqi nationals account for the lion’s share of this market; Saudis and Syrians come in second and third.

This may sound good for the country, but there is fear that the rapid increase in real estate prices will drive away most Jordanians, for whom the high prices put the sector out of reach.

The government has to consider ways to protect the middle- and lower-class Jordanians, mainly, in the face of this rapid increase in real estate prices.

Social housing might be the answer for a certain segment of the population, but that would be only a partial solution.

Sooner or later the real estate market is bound to correct itself by inviting more real estate developers to enter the market. By so doing, the prices of apartments, for example, will get lower and, thus, more accessible.

Foreign ownership is projected to decrease in the long run as Iraq and Syria return to normalcy. Still, such correction will take a while, so for the time being, help could come through extending credit on easy terms to those interested in this market.

Whatever the situation, authorities need to step in one way or another to come to the rescue of the vulnerable groups that cannot cope with the accelerated hike in housing prices.

Giving tax incentives to stimulate construction would certainly help.

More real estate developers should be encouraged to enter this lucrative market. This way, some kind of balance between demand and supply can be reached.