The residential real estate market in Jordan declined in January 2019. Apartments less than 120 sqm declined 31%, those between 120-150 sqm declined 31%, and those over 150 sqm declined 19%. This was due to high supply exceeding demand, interest rate hikes, lack of liquidity, and unattractive returns in some areas. Apartments between 120-150 sqm had the highest transaction volume while the total number of apartments sold declined 19% compared to January 2018.

1. January 2019 Estate
Trend Analysis in Jordan
Tariq Al-Basha – Real Estate Analyst
Tariq Al-Basha @ albashatariq@outlook.com 1

2. Overview of
Jordan’s
Residential
Real Estate
Market in
January
2019
Tariq Al-Basha @ albashatariq@outlook.com 2
Apartments Less
than 120 Sqm
Declined by 31%
Apartments
Between 120-150
Sqm
Declined by 31%
Apartments more
than 150 Sqm
Declined by 19%

3. Key Reasons
of the
Decline in
Residential
Real Estate
Activities in
January
2019
Tariq Al-Basha @ albashatariq@outlook.com 3
Supply of Residential
Units Exceeded the
Demand
The Central Bank of
Jordan Increased the
Interest Rates
The Lack of Liquidity in
the Market
Unattractive &
Unstable Income
Return in Some Areas
Putting into Effect
Jordan’s New Income
Tax Law No. 38 of 2018

4. No. of
Apartments
that are less
than 120
Sqm sold in
January
(2012-19) in
Jordan
Tariq Al-Basha @ albashatariq@outlook.com 4
427.00
636.00
734.00
863.00
903.00
926.00
994.00
689.00
2012 2013 2014 2015 2016 2017 2018 2019
Source: Jordan’s Department Of Lands & Survey

5. No. of
Apartments
that are
Between
120 to 150
Sqm sold in
January
(2012-19) in
Jordan
Tariq Al-Basha @ albashatariq@outlook.com 5
359.00
680.00
902.00
859.00
921.00
1,068.00 1,075.00
746.00
2012 2013 2014 2015 2016 2017 2018 2019
Source: Jordan’s Department Of Lands & Survey

6. No. of
Apartments
that are
more than
150 Sqm
sold in
January
(2012-19) in
Jordan
Tariq Al-Basha @ albashatariq@outlook.com 6
366.00
666.00
783.00
574.00
627.00
688.00
849.00
689.00
2012 2013 2014 2015 2016 2017 2018 2019
Source: Jordan’s Department Of Lands & Survey

7. No. of
Apartments
Sold in
January
(2012-19) in
Jordan
Tariq Al-Basha @ albashatariq@outlook.com 7
1,152.00
1,982.00
2,419.00
2,296.00
2,451.00
2,682.00
2,918.00
2,124.00
2012 2013 2014 2015 2016 2017 2018 2019
Source: Jordan’s Department Of Lands & Survey

8. Apartments
size between
120-150 Sqm
had the
highest
number of
transactions
in January
2019
Tariq Al-Basha @ albashatariq@outlook.com 8
Less than 120 Sqm
33%
Between 120 - 150
Sqm
35%
More than 150
Sqm
32%

9. Porter’s Five Forces in The Jordanian Real
Estate Market
Tariq Al-Basha @ albashatariq@outlook.com 9
HIGH
Competitive
Rivalry
LOW/MEDIUM
Threat of New
Entrants
LOW
Threat of
Substitutes
HIGH
Bargaining
Power of
Suppliers
HIGH
Bargaining
Power of
Buyers