Real estate demand drops due to regional turmoil, stakeholders say

AMMAN — Experts have highlighted the complex and multi-faceted impacts of regional instability, including the Israeli war on Gaza and escalating tensions along the Israeli-Lebanese border, on the Kingdom’s housing sector. 

“The overall demand in the real estate sector has dropped by 6 per cent this year compared with the same period in 2023,” former president of the Jordan Housing Developers Association (JHDA) Kamal Awamleh told The Jordan Times on Wednesday.

Awamleh also noted that demand for residential apartments declined by 2 per cent in 2024, signalling a "slight" slowdown in the housing market. 

Awamleh also highlighted a 7 per cent decline in demand for land during the same period, adding that the housing market faces unique challenges, combining limited household income and economic hurdles with the constant external pressures from regional turmoil. 

Awamleh also warned that the decrease in licensed construction space this year could negatively impact future real estate investments, adding, "This is likely to result in fewer bids, falling short of meeting demand, and potentially stalling growth in the sector."

Former JHDA president Fawaz Hasan attributed the decline to the sector's complex regulatory procedures and insufficient government support, stressing the need for streamlined processes and facilitation measures to ease barriers for stakeholders and boost sectoral growth.

Hasan also said that addressing these challenges requires a coordinated, multi-stakeholder approach, aimed at fostering cooperation to ensure sustainable development and meet the growing housing demand.

The Department of Land and Survey has recently reported a 4 per cent decline in real estate transaction volume in August.