Jordan’s housing market slumps amid war in Gaza, apartment sales to rebound by end of year

AMMAN — The overall performance of the local housing sector has experienced a serious decline, with sales falling by nearly 30 to 40 per cent since October, as escalations in the Gaza Strip reach critical levels, say stakeholders.

The housing market saw a 7 per cent decrease in October, which when compared with the current situation, represents a significant drop.

Stakeholders and developers expressed that amid the intensifying war in Gaza, there has been a decreased interest from buyers in most areas across the Kingdom. 

The former president of the Jordan Housing Developers Association (JHDA), Kamal Awamleh told The Jordan Times that the ongoing situation in Gaza has for impacted the activity of the housing industry, noting that sales are expected to further decrease during November when compared with October.

Despite agreeing that the situation in Gaza has caused a pullback in sales, he said that the current situation is not the opposite of the trend in the market during this time of the year. 

“Traditionally sales slow down during November, but with so many unknowns and everyone gauging the situation it is normal to have decreased activity in almost all industries,” he explained.

He indicated that approximately 30,000 apartments are expected to be sold by the end of 2023, unless unexpected developments occur.

According to the Department of Land and Survey, the local market’s trade volume during the first nine months of 2023, reached JD5.267 billion. 

“The ongoing Israel-Gaza war is a major blow to all sectors…there is some sort of suspense and no one is planning major projects at the moment,” according to Housing Expert Mahmoud Salah.

Giving a snapshot of where the housing market is headed for the remaining months of 2023, Salah expects apartment sales to rebound by 10-15 per cent as prices fall.

Salah said that sales have fallen by at least 30 per cent since October 7. This is due to a combination of economic uncertainty and low affordability, he added.