Real Estate Sector
Sector Drivers and Advantages
A Glimpse of Major Real Estate Projects in the Kingdom
The landscape of real estate in Jordan evolved transforming the face of major cities across the Kingdom. Rapid change during the five years has witnessed copious architectural structures and large development projects ranging from residential, commercial, tourism and industrial estates.
There are fundamental dynamics that fuelled demand for real estate in the 
Jordanian market. First of which is the vibrant growth of the Jordanian economy shaped the market for a more diversified real estates to satisfy high income tastes and middle to low income needs. Second, Gulf countries and investors with excess liquidity resulting from rising oil revenues opted for profitable opportunities in the Jordanian market. Third, political unrest in neighbouring countries from Iraq and Lebanon led to an influx of affluent populations into Jordan who increased the demand for housing and many services. Finally, the vast young population provide a ‘Natural Demand’ for housing, sustained by flexibility of credit facilities.
The real estate industry is expected to benefit from more than 13 billion JD worth of investments. In addition to the fore mentioned forecast, infrastructure and projects set along the large development projects and estates is expected to reach another 15 billion JD. According to the Department of Land and Surveys the value traded in 2006 reached 4.9 billion which represents a 40% increase from the previous year and is expected to reach 6.0 billion by the end of 2007, and 7.0 billion in the year 2007. The Central Bank of Jordan recently announced that the value of real estate in 2007 amounted to 4.028 billion JD.
The real estate sector has a positive impact on the Jordanian economy, contribution of the sector to the GDP amounts to 1.183 billion JD in 2007 marking a 4.1% growth from the previous year. Whereas the construction sub-sector also grow by 9.8% in 2007 reaching 445.6 million JD. Both real estate and the construction sector have enjoyed a considerable period of growth, respectively 6.3% and 13.1% over the past 5 years. According to the Department of Statistics (2007), the real estate sector and related activities employ 3.9% of the Jordanian workforce and construction holds 6.3% of employment.
Contesting real estate market growth the number of construction companies also grew to over 250 companies by 2006 from only 86 in 2003.