Market uncertainty grows as housing demand drops during Ramadan

AMMAN — Ramadan usually brings a temporary slowdown in Jordan’s housing market as buyers and investors pause financial decisions, but this year, rising construction costs have further weakened demand.

Industry experts told The Jordan Times that key challenges must be addressed for the sector to regain momentum once Ramadan ends.

"Real estate activity usually slows during the Holy Month, but this year, developers are also grappling with increasing material costs," said Mahmoud Salah, a housing expert and developer, on Wednesday.

Developers are struggling to stay profitable without raising property prices, a challenge that is discouraging buyers already facing financial strain, he added.

"High interest rates are also making home financing less accessible, particularly for middle-income families." With borrowing costs at some of their highest levels in years, many potential buyers are postponing purchases, waiting for signs of economic stability, he noted.

For prospective homeowners, these challenges are deeply frustrating. "I have been saving for years to buy an apartment, but with rising prices and expensive loan rates, homeownership feels increasingly out of reach. Now, I’m considering buying a plot of land in my hometown, Madaba, instead," Enad Qaisi told The Jordan Times over the phone.

"Every time I find an apartment within my budget, the price goes up before I can even finalise the deal. It’s truly discouraging," he added.

Similarly, newlywed Noor Emad said she and her husband are struggling to balance affordability with location.

"We have enough savings for a down payment, but we’re hesitant to invest. Interest rates are too high, and we’re unsure if now is the right time to buy," she said.

Despite the current stagnation, industry experts anticipate a post-Ramadan rebound, though the pace of recovery remains uncertain. Without improved market conditions, developers may need to introduce more flexible payment plans or government-backed incentives to stimulate demand.