The residential property market in Jordan continues to show signs of settling with minimal movements in rental and sales values, according to major regional and international real estate services firm Asteco.
“On average, rental rates increased from minus 1% in the third quarter of 2009 to 1% in the fourth quarter and sales prices dropped to minus 1% from 0% in the third quarter,” said Asteco in its report on the Jordan property market for the final quarter of 2009 published today, January 20, 2010.
“Following a significant drop in sales transactions over the last year, the residential sales market has seen little activity over the last quarter,” the report adds. “Buyers and investors are focusing on individually built units across Amman rather than off-plan units in project developments. In addition, mortgage finance companies continue to be conservative in their lending.”
In the Jordan office market rental and sales rates continued to fall during the last quarter of 2009 with rental rates declining by 3% and sales by 1% since the third quarter, according to Asteco. “This fall in office rents has occurred as a result of the economic slowdown as companies downsize or close, coupled with a large office inventory,” the report adds.
“Building owners have offered incentives to new and existing tenants when renegotiating contracts, including grace periods, flexible payment terms and additional parking, to try and alleviate the downward pressure on rents.”