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Sale prices for apartments in Amman rise by 14 per cent
A stable economy and political situation improved market sentiment in 2013, reveals Asteco report
February 20, 2014 4:44 by kippreport
Apartment sale prices in Amman, in Jordan, jumped to 14 per cent in Q4 of 2013 while rental rates remain relatively unchanged at two per cent due to increased supply, according to a real estate report by property management company Asteco, released today.
The report – titled Jordan Focus Q4 2013 – reveals that a stable economy and calm political situation have improved market sentiment, resulting in price increase.
Some areas in the Jordanian capital have witnessed strong sales prices growth mainly from Jordanian nationals. In the past year, prices in an area such as Al-Rabiah rose by 24 per cent. Sweifieh rose by 19 per cent, Der Ghbar by four per cent and Um Othainah by 13 per cent, according to John Stevens, managing director at Asteco.
To buy an apartment in the area of Sweifieh will cost an average of JOD1,175 per square metre, while renting a two-bedroom apartment in the same district will cost approximately JOD7,875 per year.
“Investors were primarily interested in smaller studio apartments, with good potential leasing prospects. Owner-occupiers preferred larger apartments ranging from 250 to 300 square metres,” he says.
However, the report shows a decline of two per cent for office leasing rates compared with the previous quarter, partly due to a difference between landlords who wanted to lease full or half floors, and tenants who wanted space up to 200 square metres.
An average office space in Wadi Saqra now costs JOD98 per square metre per year.
Asking prices for commercial property sales have remained slow with few transactions, as developers have been raising their prices by eight per cent to compensate a rise in construction costs, which is likely to cause a slowdown, according to the report.
“We anticipate a slowdown in the office market in 2014, especially for properties for sale, as supply increases and demand is limited, which will likely put downward pressure on prices,” says Stevens.