Land developers urge stimulus packages as low demand impacts housing sector

AMMAN — The low demand impacting the local housing sector has prompted land developers to step up calls for stimulus packages to boost market sales, according to stakeholders. 

According to recent figures published by the Department of Land and Survey (DLS), the overall trade volume in the first 10 months of the current year declined by 4 per cent, amounting to JD5.896 billion.

Housing expert, Mahmoud Salah told The Jordan times “with the continued weak demand for property and land, it is important to have certain measures that consider the bigger picture of current market trends…that way; we might be able to counteract the impact of recent declines in demand and drive further investment in the sector”. 

In 2023, the overall trend in the housing market has decreased in activity, therefore an urgent intervention by relevant authorities is necessary, he said. 

He predicted that 2024 will have similar market trends, including elevated interest rates and increasing operational costs.

The majority of land sales were in Amman and Zarqa. A total of 489 land plots were sold in Amman and 347 plots were sold in Zarqa’s Al Batrawi district, the DLS figures indicated.

The overall land and real estate sales for non-Jordanians have decreased by approximately 33 per cent during the first 10 months of 2023, when compared with the same period of the 2022.

Similarly, former Jordan Housing Developers Association (JHDA) President Kamal Awamleh said there is a need for market-specific stimulus packages and policy responses in order to boost economic activity within the sector and bring new impetus into the housing market.

“A clear strategy for any intervention is important and solving certain issues such as the increasing sale tax and property transfer fees is a priority,” he added.