AMMAN — The trade volume in the real estate sector reached JD4.875 billion during the first 10 months of this year, according to the Jordan Housing Developers Association (JHDA).

The monthly reports issued by the Department of Land and Survey showed that the trade volume during the first 10 months of 2021 reached JD3.957 billion and increased to JD5.21 billion by the end of the year, marking an 8 per cent increase compared with 2019.

“The sector is showing signs of recovery,” JHDA President Kamal Awamleh told The Jordan Times, predicting that the trade volume is likely to reach JD6 billion by the end of 2022.

A recent report issued by the Department of Statistics (DoS) also showed that the total area of licensed buildings reached 5.627 million square metres in the first eight months of 2022, compared with 5.456 million square metres during the same period of 2021, marking a 3.1 per cent increase.

The area of housing buildings, which comprised 87.6 per cent of the total area of licensed buildings, decreased by 2.3 per cent, amounting to 4.688 million square metres, according to the report.

It also showed that the total area of buildings licensed for non-residential purposes increased by 7.42 per cent, amounting to 968,000 square metres in the first eight months of 2022.

Awamleh noted that while these numbers are promising indicators following a stagnant period during the COVID-19 pandemic, the sector is still suffering from the various challenges which have led to a notable slowdown in the past 10 years.

He added that the total area of licensed buildings in 2015 reached around 17 million cubic metres.

The DoS’s report also showed that the central region of the Kingdom registered 65 per cent of the total area of licensed buildings, while the north recorded 24.6 per cent and the south recorded 9.9 per cent of these buildings.

In previous years, the central region registered 75 to 85 per cent of the area of licensed buildings, as most economic projects and activities were centered in Amman, Awamleh said.

“These numbers indicate a positive change in the distribution of investments and developmental activities, especially within the past five years,” he added.

JHDA Director General Basema Alsoub noted that exemptions, which reduced taxes and registration fees to 6 per cent from 9 per cent during the past year “stimulated” investments in the sector.

“But despite the sector’s revitalisation, it’s still dealing with a number of challenges slowing its growth,” she told The Jordan Times.

These include the high costs of production inputs, high land prices, low purchasing power, the tax burden, the increase of interest rates on housing loans and “the absence of a stable legislative environment regulating the sector”, according to Alsoub.

She noted that the low purchasing power among low and middle-income citizens, who make up over 60 per cent of the population, demands encouraging investments in real estate rental properties.

“This requires adopting stricter laws to organise the relationship between tenants and residents to guarantee the rights of both parties,” she added.

jordantimes