Jordan residential market shows signs of stabilization

(MENAFN Press) The third quarter of 2009 has seen the decline in the rental and sales markets for residential properties in Jordan stabilizing at minus 1% and 0% respectively, compared with 5% and 7% in the previous quarter, according to the latest report from Asteco, a major Middle East real estate services firm.

Areas such as Sweifieh saw fractional changes in the one bedroom apartment market with average rental rates decreasing from Jordanian dinars (JOD)2,400 to JOD2,350 per annum, the report adds. There has been some strong activity in the Fourth Circle area with average rental rates up by 2% to JOD2,200 per annum for one bedroom apartments.

Al-Rabiah is the most affordable locality in which to rent, with an average rental rate for all property types of JOD2,775 per annum. The most expensive remains Abdoun with rental rates averaging JOD6,475 per annum.

The apartment sales market is beginning to show signs of stabilizing with little price change over the last three months. Abdoun and Um-Othainah have experienced 4% and 2% decreases to JOD975 per square metre. Both of these areas are the most expensive for apartment sales. The most affordable locality is Al-Rabiah with values ranging from JOD650 to JOD850 per square metre.

The Asteco report adds that the Jordan office market continues to see decreases in the rental market with rental rates ranging from JOD90 per square metre in Sweifieh up to JOD135 for better quality offices in Mecca Street, Shemeisani and Um-Othainah. The rate of decrease has slowed down, however, in the last three months with rates dropping by approximately 3%, compared with 6% in Q2.

The sales market for offices has also slowed marginally with sales values dropping by 2% compared with 7% in the previous quarter. Starting prices for offices are JOD750 per square metre on Madina Monawarah Street, reaching up to JOD1,250 for offices on Mecca Street and Um-Othainah.

The Asteco Jordan Q3 2009 report also highlights the Lamar Heights exclusive luxury villa development west of Amman city.