Jordan’s Housing Market Declines Amidst War

The overall performance of the local housing sector has experienced a serious slump, with sales falling by 30 to 40% since October

The former president of the Jordan Housing Developers Association (JHDA), Kamal Awamleh, has said that the on-going situation in Gaza has for impacted the activity of the housing industry, noting that sales are expected to further decrease during November when compared to October. Despite agreeing that the situation in Gaza has caused a pullback in sales, he said that the current situation is not the opposite of the trend in the market during this time of the year. “Traditionally, sales slow down during November but with so many unknowns and everyone gauging the situation, it is normal to have decreased activity in almost all industries,” he explained. He indicated that approximately 30,000 apartments are expected to be sold by the end of 2023 unless unexpected developments occur.

According to the Department of Land and Survey, the local market’s trade volume during the first nine months of 2023, reached JD5.267 billion. “The ongoing Israel-Gaza war is a major blow to all sectors. There is some sort of suspense and no one is planning major projects at the moment,” according to housing expert Mahmoud Salah. Giving a snapshot of where the housing market is headed for the remaining months of 2023, Salah expects apartment sales to rebound by 10-15% as prices fall. Salah said that sales have fallen by at least 30% since October 7. This is due to a combination of economic uncertainty and low affordability, he added.