Jordan Real Estate Market Analytics

Comprehensive overview of real estate market trends and investment metrics in Jordan.

Moderate Data Coverage

4 of 4 categories

Data Coverage44%

Key Highlights

Rental Yield

5.7%

Average annual rental return

Price to Income

7.5x

Property price vs. annual income

Market Trends

Rental Yield

Average annual rental return on investment

Price to Income Ratio

Ratio of median property price to median annual household income

Apartment Price (City Centre)

Price per square meter in city centre (USD)

Apartment Price (Outside Centre)

Price per square meter outside city centre (USD)

1BR Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre (USD)

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre (USD)

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre (USD)

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Jordan Real Estate Market trends and investment implications

Market Overview

Jordan's real estate market presents a mix of opportunities and challenges for property investors. With moderate GDP growth and relatively stable house price growth, the market offers potential for strategic investments, particularly in urban centers. However, investors must navigate complex factors such as rental yields, tax implications, and foreign ownership restrictions to optimize returns.

Key Findings

Data-driven insights

•Between 2009 and 2023, Jordan's GDP grew at an average rate of 2.8% annually, while house prices increased at an approximate rate of 3.5%, indicating a slightly faster appreciation in property values compared to economic growth.
•Rental yields in urban centers like Amman average 5-6%, which, combined with current interest rates averaging around 6.5%, suggests that achieving positive cash flow is possible but tight, especially with financing.
•Population growth of 2.5% annually has outpaced new housing supply, creating upward pressure on housing demand and property prices.
•Jordan's property price-to-income ratio stands at approximately 13, indicating a high level of unaffordability when compared to the average monthly salary of 664.11 USD.
•The effective tax burden on property transactions, including capital gains and purchase taxes, can range from 7-9%, impacting net investment returns.

Market Trends

Historical patterns

•Continued urbanization is driving demand for residential properties in cities, particularly for smaller units like studios and one-bedroom apartments.
•Regulatory reforms aimed at improving foreign investment appeal are slowly easing ownership restrictions, though challenges remain.
•Rising construction costs and supply chain disruptions are affecting new developments, potentially limiting short-term supply growth.

For Investors

Actionable takeaways

•Consider investing in studio and one-bedroom apartments in Amman for high rental demand and favorable yields.
•Be cautious of the increasing interest rates which could pressure financing costs and affect cash flow.
•Monitor regulatory changes regarding foreign ownership, as these could open new investment avenues.
•Given current trends, investors should consider holding properties rather than selling, as market conditions could improve further with regulatory easing.

Market Context

Compared to neighboring Middle Eastern markets like Egypt and Lebanon, Jordan offers a relatively stable political environment and moderate economic growth, making it a potentially safer investment destination. However, the market's maturity and regulatory environment are still developing, presenting both opportunities and risks for investors.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.

Data Availability by Category

Comprehensive data

Partial data

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