Housing market faces uncertainty as 2024 nears its end - stakeholders

AMMAN — As 2024 draws to a close, Jordan's housing sector finds itself at a "critical juncture," with real estate activity slowing as buyers and investors focus on holiday plans and financial preparations for the new year.

This year, however, presents a different reality, with stakeholders facing a combination of challenges and opportunities, such as fluctuating demand, shifting buyer behaviours, and external economic pressures that may reshape the market heading into 2025.

The market is showing mixed responses, with bustling inquiries in urban centres like Amman and Zarqa, while smaller cities experience stagnation, according to stakeholders.

Factors such as seasonal trends, rising interest rates, and inflation are influencing this dynamic, stakeholders told The Jordan Times.

Mahmoud Salah, a land developer and housing expert, said: “The holiday season is not a peak period for housing sales in Jordan. However, we are seeing last-minute buyers eager to close deals before the year ends.”

He stressed that there is consistent demand for mid-range apartments in urban neighbourhoods, particularly in areas like Khalda and Shmeisani in Amman.

Young professionals and families are largely driving this demand, with properties priced under JD150,000 remaining steady despite rising inflation, he added.

Maria Malak, an accounting and financial consultant, highlighted a notable trend: a growing preference for renting over buying.

"Real estate agents are reporting a significant rise in rental inquiries, especially in areas near universities and business districts."

“For many, renting is the only viable option right now,” she added.

Abeer Nofel, a project designer, highlighted a shift in client preferences, saying: “Today, clients are prioritising efficient layouts and multi-purpose spaces, particularly in mid-range apartments.”

She also emphasised the ripple effect: as demand slows in the real estate sector, the workflow for businesses directly tied to the industry also diminishes.

Despite these challenges, there is cautious optimism for the future. Stakeholders are hopeful that the new year will bring government-backed affordable housing initiatives, alongside a gradual recovery in consumer confidence, signalling a potential rebound in 2025.