Jordanian Housing Investors Association calls for stimulus measures

AMMAN — The Jordanian Housing Investors Association has called for stimulus measures to revive the housing sector.

Head of the association Kamal Al Awamleh noted that real-estate prices are currently stable, especially since the Department of Land and Survey is studying the current status of administrative fees which will pave the way for lowering property prices.

Awamleh noted the Department of Land and Survey’s study mainly targets plots of land in Amman.

He attributed many factors to the expected decrease in property prices, mainly low demand, low purchasing power, high interest rates and high administrative fees.

Awamleh expressed his hope that the department will “complete the study in earnest” and implement appropriate measures to stabilise the sector.

Regarding the increase in the issuance of building permits, Awamleh said these figures “do not correlate with property sales.”

He said construction permits do not necessarily mean the start of construction, noting that the duration of the permit is two years, with the chance of renewal.

Awamleh indicated that investors are increasingly buying villas to refurbish, instead of building new ones.

He also called on the government to review the sales tax imposed on apartments for limited- and low-income households, which currently amounts to 16 per cent. 

Awamleh also noted that there is an increase in demand for apartments with an area of ​​more than 150 square metres. 

He expected the sector to be active with the approach of expatriates’ arrival in the coming two months, as they constitute the largest percentage of buyers and tenants.