Property sales in Jordan increased 1-3 percent during the second quarter of 2010 as home financing improved and developers secured financial backing, according to a report released on Monday.
Rents also showed signs of recovery with a 4 percent rise during the second quarter, according to Asteco’s Jordan Report Q2 2010.
Despite the improvement the report noted that overall demand remains weak. “Overall demand continues to be weak as potential investors are taking a cautious approach, however, prices have seen marginal increases,” said Hussein Safadi, general manager – Jordan, Asteco.
“The cost of construction continues to remain high and subsequently the real estate market has yet to see any strong price movements,” he added.
Abdoun and Um-Othainah remained the most expensive areas for apartment sales commanding up to JOD1,000 per sq m ($1,400) while 4th Circle rates were the second highest at JOD900 per sq m. All prices represent a 3 percent increase on the first quarter of the year, said the report.
While the average rental rates for a 3 bedroom apartment increased 4 percent during the second quarter, the cost of a one bed apartment remained the same at between JOD1,750 – 5,500 per year.
Office rents also showed some signs of stability during the second quarter. While commercial rates in Um-Othainah and Mecca Street remained the same other areas declined by 1-3 percent. The report also noted that a number of companies are looking to build their own headquarters to reduce cost.