Jordan Real Estate Advisors - Articles - Investing in Jordan

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

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.

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.