When looking at the markets for overseas property investment, countries such as Dubai, Bulgaria and Brazil are often debated. The past couple of years however have seen aggressive growth levels in the market for property in Jordan, as internal and external factors culminate in a favourable economic climate for investment in the region.
Recent years have seen the beginnings of a strong period of growth and investment in the Jordan real estate market, as increasing numbers of investors and developers look to capitalise on the country's high economic growth and political stability.
The past five years have seen increasing numbers of non-Jordanians purchasing property in Jordan, predominantly in the major commercial centres of Amman and Zarqa. In particular, increasing numbers of Kuwaiti's, Saudi's, Syrians and Iraqi's have bought property in Jordan, looking to capitalise on the consistent period of economic growth in the region since 2002.
It is thought that there are three main factors which have resulted in this growth in the market for property in Jordan. The first reason is the security and stability of Jordan, especially given the relative instability in other countries within the region. The second reason was the reform of a number of public policies which resulted in lower interest rates in Jordan, this cheaper form of borrowing again caught the eye of overseas property investors. The final factor was the amended Landlords and Tenants Law No.11, which effectively ended the fixed rent era in Jordan, and saw the market move to a more self-regulatory model.
It is estimated that the market for property in Jordan will continue to grow at around 10-20% per annum. More general factors such as the changing attitudes towards owning apartments and the gradual maturing of a relatively young population is likely to result in continued organic growth in the Jordan property market.
As a result of these confident projections of growth in the Jordan property market, major development projects such as the Abdali project and King Abdullah Bin Abdul Aziz City are already well underway. As well as this, new large-scale projects in destinations such as Aqaba are also under consideration, and an increasingly pro-investment legislature has overseen the handover of numerous large plots of land to major developers for these major projects. As these large-scale projects come online, it is likely that the Jordan property market will experience a period of sustained, aggressive growth.
With property in Jordan currently more affordable than other countries in the region, there is an increasing amount of interest in the region from overseas investors. This external interest, coupled with an increasing amount of local interest, is likely to result in a sustained period of economic growth in the Jordanian property market, and favourable returns for overseas property investors.
Mark Burns is a Partner at Property-Dubai. tv, a real estate consultancy specialising in property in Amman as well as offering a wide selection of Jordan real estate .