The Real Estate Sector in Jordan Reality and Prospects

Abstract

The successive migrations of Jordan have had a clear impact on overall demographic, social and economic changes in general. And the real estate sector in particular. The population of Jordan according to the general census of population and housing was 979,900,000 in 2015 and those with Jordanian nationality 6613584 people, or less than 67.5% of those on Jordanian soil, the Dependency ratio was high 62% and the proportion of the urban population was 90.3% and the rural population was 9.7%. and the total number of households was 2032.8 thousand families, the number of Jordanian families within the 1372000 families and the families involved in the real estate product were 1239 thousand families.

As a result of this demographic growth Residential need rose before the Gulf war, which were within the 21000 unit to 33000 residential unit to 55000 units annually in 2011 after Syrian asylum. This resulted in a significant increase in property prices statistical data showed that real estate asset price index in Jordan rose from 81.3 points in 2007 to 121.2 points in 2016 and residential real estate prices have risen in the last ten years by 54% and the land within the organization is one of the reasons for this high ratio which reached  more than 66%, with these rises in property prices which is not accompanied by a positive impact .As a result of the above many problems represent the imbalance in the real estate sector, notably:

1- The trend of many households to spend on housing at the expense of basic needs and that weaker demand for production and services and limited the increase in incomes if we know that the salaried employees 86.9% proportion in the Jordanian economy and the saving ratio in 2014-2016 years is negative.

2. the high cost of housing and the inability of a large segment of citizens to buy real estate.

3. the gap between housing product and demand in the real estate market.

4. the Real estate sales declined by more than 35%

5. difficult housing conditions and lending guarantees and weak sustainability programmes of support for housing finance.

6. stumbled in repayment of loans by investors which threatens the credit sector and predicts financial crisis in Jordan.

Keywords: Real Estate, Economic Growth, Population, Housing Unit, Real Estate Investment.