Housing developers association calls for gov’t incentives to boost construction

AMMAN — Prices of apartments are expected to increase soon, the Jordan Housing Developers Association said on Wednesday, citing a 50 per cent drop in construction permits during the first half of 2019. 

The number of new apartments being built every year has decreased since 2015, according the association’s president, Zuhair Omari. 

"In a recent study by the World Bank, it was determined that Jordan requires 65,000 housing units annually and in the past few years the construction was less than half that figure," Omari said, adding that the government needs to act quickly to encourage production in the sector with facilitations and exemptions. 

Investors are avoiding the sector, selling their projects and not starting new ones, Omari told The Jordan Times over the phone, adding that the Kingdom does not suffer from a real estate crisis, but the population is increasing.

Another issue is the gap between most people's salaries and expensive real estate prices, and this in the long run will cause demand to outpace supply, according to Omari, who suggested that the government drafts a plan in cooperation with the private sector to encourage investors to remain in the sector. 

The current regulations exempt the first 150 square metres of an apartment from registration and property transfer fees, but this only applies to apartments no bigger than 180 square metres, Omari said, calling the exemption to be expanded to apartment buildings of all sizes.

He also called for reducing housing loans’ interest rates through the Central Bank of Jordan, which will help reduce the fears of the investors themselves as well as those who wish to be homeowners. 

"The sector does not only resolve housing issues for people but also helps stimulate more than 150 [other] sectors, 40 of which are directly related to the real estate sector, not to mention the job opportunities it offers," Omari said.

The association president added that a recent real estate law has been "great help but not enough to help the sector rise". 

At a workshop held by the Justice Ministry at the beginning of July, Prime Minister Omar Razzaz said that the real estate sector comprises 60 per cent of assets in Jordan, adding that any hindrances facing the real estate sector would have implications on the national economy.