Jordan Real Estate Advisors - Articles -

Jordan’s real estate market is showing no signs of slowing down

no@spam.com (Wasfi Samaan) — Sun, 04 May 2008 10:21:44 MST

Jordan’s real estate market is showing no signs of slowing down -


Recent announcements from the growing real estate sector include a $7bn housing project for low-income citizens in the kingdom and the entry into the market by one of the region’s largest developers indicates a report published by AMEinfo. Late February, King Abdullah II launched the ‘National Housing Initiative,’ which is a multi-billion dollar project that aims to build 120,000 properties throughout the kingdom for low and limited-income Jordanians. In a move that highlights the kingdom’s commitment to the program, the government plans to give away huge parcels of land to private sector property developers to kick start the initiative. A new body, affiliated with the Housing and Urban Development Corporation, is being set up to oversee the program. Meanwhile, construction of the first 20,500 housing units, which will range in area from 100 square meters to 160 square meters and be offered at affordable prices, is expected to begin later this year. Limitless enters Jordan Another recent boost to the Jordan real estate market came from UAE developer Limitless, which said it will be spending $300m to build two residential towers in Amman. The launch of Limitless Towers came just a few weeks after the developer, a unit of Dubai World, established new operations in Jordan, where it is planning a number of projects to add to its rapidly expanding international portfolio. ‘Jordan’s fast-growing economy, changing real estate requirements, convenient location and stability make it a firm favorite as a new market for Limitless,’ said Bahaa Abouhatab, Country Manager for Limitless in Jordan. Limitless plans to invest a total of $1 billion in Jordan over the next few years, Abouhatab told Gulf News. Limitless Towers, which will be over 200 meters in height, will be the tallest in Jordan and among the tallest twin buildings in the Middle East. The project will feature the world’s highest suspended swimming pool - 125 meters high - connecting the two towers. The glass-bottomed pool, which will be accessible from the 40th floor of each building, will provide a panoramic view of Amman and the surrounding landscape. Limitless also claims that the towers will be the first ‘green’ building in Jordan. The project will adopt a number of eco-friendly initiatives in its design, construction, and maintenance in hopes of achieving Leadership in Energy and Environmental Design (LEED) accreditation. Mawared touts projects Jordan’s surging real estate market was touted at the recent Jordan Economic Forum held in Amman. The National Resources Investment & Development Corporation, better known as ‘Mawared’, unveiled a model of the King Abdullah bin Abdul Aziz City that is currently under construction in Zarqa. The planned city covers over 25 million square meters and is expected to house over 400,000 people in over 70,000 residential units of between 100-160 square meters each. Akram Abu Hamdan, Mawared’s Director General, said the project will include hotels, schools, and hospitals, along with commercial, retail and entertainment centers, all of which are aimed at stimulating the economy of Zarqa and raising the standard of living in the area. ‘Jordan is experiencing a period of unprecedented growth, and the development of real estate represents is one of the main ways in which the Kingdom will maintain its momentum for continued economic growth and remain investment-friendly for foreign investors,’ he noted. Taameer Jordan Holdings also used the forum as a showcase for one of its major projects, the Ahl Al-Azim development, which is another large housing project targeting low and medium income segments in Jordan. The development is located in the Al Jiza district and will offer around 16,000 housing units. The housing units are being offered at affordable payment terms, and the project as a whole is being developed in collaboration with the Jordan Housing and Urban Development Corporation. AMEinfo

Al rai

no@spam.com (Wasfi Samaan) — Fri, 15 Feb 2008 05:30:45 MST

This was printed early in 2007.

Additional Investment Websites

no@spam.com (Wasfi Samaan) — Wed, 12 Dec 2007 20:08:29 MST

View other websites realated to amman and investing in amman.

Book your Airline Tickets to Jordan Here

no@spam.com (Wasfi Samaan) — Sat, 11 Aug 2007 00:37:02 MST

Open 7 days a week til 10pm. We speak english and arabic.

About Jordan

no@spam.com (Wasfi Samaan) — Wed, 11 Jul 2007 05:19:30 MST

Jordan

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Situated in the heart of the Middle East is Jordan, the meeting point of three continents: Europe, Asia and Africa. Jordan’s image conveys a vibrant fusion of history and modernity. These elements are well interlaced in the capital Amman, where one moment you are wandering back in time at the ancient Citadel Hill and the next driving through the urban and contemporary streets of Amman.

Jordan is often seen as the liberal and accessible face of the Middle East and widely regarded as one of the most promising and emerging markets in the region, due to rising income levels and increased interest from foreign investors . Jordan’s vision of a thriving market includes a future that caters to the needs of the people and promotes business and investment opportunities in the region. Thus the demand for international brands is growing as the numbers of visitors increase.

Amman
Situated between the desert and the lush Jordan Valley, Jordan’s capital Amman is a vibrant city with a history dating back almost 9000 years. Benefiting from an Eastern Mediterranean climate, Amman has long been an attractive place to live in. Amman is one of the fastest growing cities in the Middle East and home to almost one third of the Jordanian population.

Business and residential areas in West Amman are located in relation to a number of roundabouts and crossroads along Zahran Street, the main road from downtown to the Queen Alia International Airport. These are referred to as "circles" and are numbered one to eight. In addition there are popular residential neighborhoods of Abdoun, Swafiyeh, Dair Ghbar, Al Rabia and Um Othaina.

As the city has grown, the commercial center of Amman has shifted to the west. The main business district is now close to the third and fourth Circles and is expanding towards Shmeisani. Amman forms the focus of the Jordanian economy, being the center of government activity, commerce, services and manufacturing. The service sector dominates the economy real estate and business related services with transport and communications forming the greater part of Jordanian commercial activity.

Amman is being transformed into an international center attracting substantial inward investment. Amman’s thriving business community has created a city of opportunity as continued privatization and forecast economic growth stimulates and accelerates the pace of domestic and international investments.

History of Amman

Throughout history, Amman has been inhabited by several civilizations. The first civilization on record is during the Neolithic period, around 6500 BC, where archaeological discoveries in Ain Ghazal, located in eastern Amman, showed evidence of not only a settled life but also the growth of artistic work, which suggests that a well-developed civilization inhabited the city at that time.
In the 13th century BC Amman was called Rabbath Ammon or Rabat Amon by the Ammonites. It was later conquered by the Assyrians, followed by the Persians, and then the Greeks. Ptolemy II Philadelphus, the Hellenic ruler of Egypt, renamed it Philadelphia. The city became part of the Nabataean kingdom until AD 106 when Philadelphia came under Roman control and joined the Decapolis - a league of ten cities.
In 324 AD, Christianity became the religion of the empire and Philadelphia became the seat of bishopric during the beginning of the Byzantine era. One of the churches of this period can be seen on the city's Citadel. Philadelphia was renamed to Amman during the Ghassanian era, and flourished under the Ummayads and the Abbasids. It was then destroyed by several earthquakes and natural disasters and remained a small village and a pile of ruins until the Circassians settlement in 1887.
In 1921, Abdullah I chose Amman as seat of his new government, the Emirate of Transjordan, and later as the capital of the Hashemite Kingdom of Jordan. Amman remained a small city until 1948, when the population expanded considerably due to an influx of Palestinian refugees. Amman has experienced exceptionally rapid development since 1952 under the leadership of His Majesties King Hussein and King Abdullah.
Residential areas have spread out from the centre of the city to the surrounding hills. For example, several communities thrive in Jerash.

Amman

Today

Amman was originally built on seven hills, but it now spans over an area of 19 hills. The main areas of Amman gain their names from the hills on whose slopes they lie. 21st century Amman is one of the most comfortable and relaxed cities in the Middle East, a place where Muslims, Christians and the small number of people from other faiths live together without conflict.

The city's population continues to expand at a dizzying pace (fueled by refugees escaping the wartime events in Palestine and Iraq). During the last 10 years the amount of new building within the city has increased dramatically with new districts of the city being founded at a very rapid pace (particularly so in West Amman), straining the very scarce water supplies of Jordan as a whole.

The older downtown area centered around the old Souk (a colorful traditional market) and the King Hussein Mosque is now completely dwarfed by the sprawling urban areas that surround it but despite the changes much remains of its old character. For those seeking the atmosphere of the Old City, it is best to venture to the district east of Jabal Amman. There, in the bustle of daily life, you can explore the capital's greatest souqs, fine museums, ancient constructions, monuments, and cultural sites.

The Citadel hill of Amman, known as Jabal el Qala, has been inhabited for centuries, important as a military and religious site. It dates back to Roman and Byzantine times, and later work was carried out in the early Islamic era. Remains unearthed at the northern and eastern ends of the Citadel, possibly date back to the Bronze Age. The Citadel also is home to the Temple of Hercules which is said to have been constructed under the Roman empirical ruler Marcus Aurelius who reigned from AD 161-180, is similar to the Temple of Artemis in Jerash.

Philadelphia was a favorite place for Roman soldiers and officials as—like Rome—the city was built on seven hills. Right behind the Roman forum stands a Roman theatre, the largest theatre in Jordan, with room for 6,000 spectators. Thought to have been built between AD 138 and AD 161 by the Roman Emperor Antoninus Pius, it is built into the side of the mountain and is still used for sport displays and cultural events.

Amman is also home to some of the grandest mosques in the Middle East. The newest of these is the enormous King Abdullah I Mosque, built between 1982 and 1989. It is capped by a magnificent blue mosaic dome beneath which 3,000 Muslims may offer prayer. The most unusual mosque in Amman is the Abu Darweesh Mosque atop Jabal Ashrafieh (the highest point in the city). It is covered with an extraordinary black and white chequered pattern and is unique to Jordan. In contrast, the interior is totally free of the black and white scheme. Instead, there are light colored walls and Persian carpets. This religious building was erected by one of Amman's Circassian immigrants.

Real Estate in Amman Jordan has become the prime investment pool for the majority of investors and real estate entrepreneurs. Real estate in Amman Jordan has historically been a lucrative market, and in the past few years. Real estate in Amman Jordan has taken a prime location amongst all the real estate investments in the Middle East. Real estate investors in Amman Jordan feel secure in their investment due to the calm and wise political strategy and atmosphere which has led to a firm and stable growth in the real estate marketplace, which is expected to evolve further and flourish in the upcoming 3 years. Real estate in Amman Jordan is a lucrative business to the wise and intelligent investor whom has made a lot of profit and use in the real estate market in Amman Jordan.

How to get a Real Estate Loan in Jordan?

no@spam.com (Wasfi Samaan) — Fri, 29 Jun 2007 23:16:24 MST

Many expatriates (those who are from Jordan who live in another country) think that dealing with banks in Jordan is difficult. The guide lines are similar to the United States but the requirements are more lenient for the amount of Income in comparison to Jordanians.

For example, to get a loan for

a 50,000 JD house, you only need an income of 500 JD a month. You have to have proof that you are earning that amount. If you live in the United States or abroad, you will need to copies of two years tax returns. They will also require seeing your bank statements for one year for your personal account. They want to see your activity, the more activity (money coming in and out) the better. If your accounts look good then it will make the whole process much easier. If you have a business in Jordan or abroad, it is good to give them the banking activity for that also.

The first thing that you should do is you will need to open an account at the bank you are applying at. If you know that you are going to get loan sometime in the future, I would do this sooner than later as it will give you a history with the bank. Once you have done this you will apply for a loan, this is usually just a one page document that has your personal information, income, the kind of loan you are applying for and what you are purchasing. This is preliminary that prequalifys you based on what you told them. This usually takes 3-5 days. Once you are pre-qualified then they will ask you for your bank statement activity, proof of income, and contract from the person you are buying from, if it is a new building they will ask for more documents that you will get from the builder. Usually you can get the list from the bank and give it to the builder and he can get these documents together for you. If you are going to be getting a loan on the big development projects, it will vary especially if you use the developer’s bank they signed a contract with. This makes things easier. They take care of the process; they also give multiple options on how you can finance a project that won't be finished for 2-3 years.

Most banks offer different down payment options and amortization options meaning how many years you want to finance your loan. If you live and work abroad, the most the bank will give you is 65%-70% of the loan, but if you work and live in Jordan you can get up to 100% of the loan proceeds if the property you are buying is going to be your place of residence. The interest rates will vary if you are buying the property for investment purposes or to live in. Usually the rate is 2%-3% lower if you are going to be living in the home. Most people will say they are going to live in it then rent it out afterwards. As far as costs that will incur for closing costs. You will need to pay an appraiser to appraise the property, usually this cost 75 -125 JD.

You will also pay a fee to the bank of 1% of the loan. Some banks will charge this every year but there are a few banks that won’t. The payment will be deducted from your account monthly. If you live abroad it is good to setup up internet banking and be able to transfer money online so it will make things easier

Property Tranfer Taxes

no@spam.com (Wasfi Samaan) — Fri, 29 Jun 2007 22:14:09 MST

When buying and selling real estate there is one fee charged to both the buyer and the seller but it is not as cut and dry like the U.S. The buyer pays 6% transfer tax on the appraised value that the local government will place on the property; this is always lower than what you pay or what the fair market value is. The seller pays a 4% transfer tax. For example, I purchased a 3 bedroom apartment this summer for 140,000 JD, I paid 5200 JD transfer tax. The local government puts a price on what they think it is worth like how a Property Valuation administrator would work in the U.S. In my case they estimated it a little under 100,000 JD. If you get a loan against the house the bank will send an their own appraiser which will be closer to the purchase price. There are yearly property taxes and they are different for a place of residence vs. property that is rented. On a home you use as a residence it only about 1% a year. If it is rented, it is 15% of the gross estimated rents. The government will estimate what your rent should be and it is always lower. The reason that they do all this is that they don't want people manipulating the system.

Keys to investing in Jordan

no@spam.com (Wasfi Samaan) — Tue, 05 Jun 2007 05:49:49 MST

Many people are always interested at looking at investments outside the United States but are usually scared and they have a right to be. Anytime we venture outside our comfort zone weather it is in real estate abroad, starting a business, or even speaking in front of a group of people, we become scared. The main reason is that we don’t have the right information from a reliable source or it’s usually someone that does not have any experience giving us advice. Humans from every culture fear the unknown. This is why when I started investing in Jordan, I had to see what the country is like and what opportunities where available. I found out real quick that it is unlike investing in the United States but is very lucrative.

I first started out with an apartment in an 8-plex unit. The majority of the citizens in Jordan live in similar units where each person will own their own unit. You have a security guard who cleans and keeps up with the maintenance that is usually paid 25 jd a month which is equivalent to about $35. Individual units in these 8-plex units vary in price depending on location. They can be the exact same unit and you can pay 4 times the price if it is in the right location. Of course over the last 3 years prices have doubled due to the demand from the 1 million Iraq’s that fled their country. Individual units are usually what rent the fastest because of the reasonable rental rates.

The rental market is very strong in Amman, Jordan especially in the higher end areas of Abdoun and Deir Ghbar. For example a three bedroom apartment unfurnished will get you around 12,000 jd a year equivalent to $18,400. If furnished then you are looking around 17,000 jd a year equivalent to $24,000. Now you are probably wondering why I am quoting these prices by the year. This is the nice thing about renting to the higher end clientele which usually are from another country; it is customary to pay rent by the year. Isn’t that great! Where else can you do that? I recommend renting to embassy’s and to company’s who are paying for there employees rent. If this is your market, do not buy property located on a busy street. This is unattractive to companies and embassy’s.

The laws and court system are becoming more westernized and is becoming easier to evict someone for not paying their rent. But if you deal with the higher clientele, you shouldn’t encounter any problems. Now I am sure you have allot of questions on your mind like; can you buy property in Jordan if you are not a Jordanian? How do I get started? Can I get a loan? Who can manage the property if I am not there? Is it safe to buy in Jordan with all the problems in the region? And these are all valid questions. It will be hard to go over everything but I will try to cover as much as possible but there also other investment options that I will talk about later in the article.

First of all anyone can buy property in Jordan as long as they have a valid passport. It is usually good to get familiar with local real estate agent who can guide you with the whole process. The real estate company will usually have a management division if you deal with a reputable company. Anyone that can verify their income abroad can get a loan that will give them 65% loan value. This is another reason that is fueling the economy is the banks are becoming more lenient in their lending.

One of the biggest reasons that people don’t buy in Jordan is the instability of the region but this is actually what’s fueling the growth. The Jordanian government has a great relationship with the United States and they have an interest that Jordan stays safe.

It is good to have property in Jordan that generates you income but the future of the money to be made is in residential luxury towers and condos in the resort town of aqaba. This is what Dubai experienced and where millionaires were made. One of the first towers that started selling in July 2006 where the Heights by Damac properties in the Abdali project. This towering 35 floor luxury tower is one of the hottest properties in Amman experiencing 35% appreciation in the first 3 months. Two adjacent 8 floor towers are also being built by Damac. These towers feature studio, one-bedroom, two-bedroom, and three-bedroom apartments. The building will also have its own gym, swimming pool, restaurants, entertainment and shopping. It is the first of its kind in Amman.

What makes this so unique that it is located in the heart of Amman and is part of the new downtown Amman in the Abdali. The area is 70% commercial and will be located few hundred yards from the new Jordan American University that will have over 4000 thousands students. This is where the demand for the one bedroom and studio apartments will come in.

Weather you buy to rent or buy to hold and sell you need someone who can guide you in the process.