Why Jordanian Real Estate Might Be One of the Region’s Safer Property Bets
One of the golden rules of real estate—and economics in general, for that matter—is that consistency is key. The more you can depend on a market, the better off you’re likely to be while trading with that market, and by extension the better off that market is likely to be itself. There are plenty of wrinkles to this rule and many situations wherein different investment opportunities might change the game, but as a general rule when you’re looking to invest or do business in a region, stability is your friend, and unpredictability your enemy.
Nowhere is this more true than in the Middle East. In a region which knows as well as anywhere on Earth the difficulties of facing socio-economic unrest and uncertainty, a nation such as Jordan can be a breath of fresh air for investors. Generally stable—especially compared to its neighbours—and endowed with other attractive qualities, Jordan real estate can be a lower cost, higher reward option for those looking for prime property in the Middle East.
A Peaceful Option
In a region so often rocked by war and unrest, Jordan has long stood in the public imagination as one of the most peaceful options in the Middle East. As a result, it is seen as a more stable market and enjoys the benefits thereof.
Recent Economic Forecasts
The fact that Jordan’s GDP has seen modest, consistent growth over the past few years is a very positive sign for those looking for a low-risk property investment in the region which can pay dividends over time. Moreso, 2014 was a banner year for Jordanian real estate construction, and it will be interesting to see how that plays out over the next few years. People have also taken to adding value to their homes via DIY and other home improvement projects—a commitment to the long-term viability of their property which can seem like a luxury compared to other countries in the area, such as Syria. If there are clouds on the horizon of the real estate market, they may be the result of these booms themselves, with the looming questions of oversupply of new real estate and how that might affect demand down the line. That said, unless the oversupply turns out to be a catastrophic mistake, Jordan’s economic outlook for the future seems reasonably bright and comparatively drama-free when compared to its neighbours.
Buying vs Renting
In general, as with just about everywhere else in the region, renting is a good answer for those looking for a comparably inexpensive way to live in the area, while buying is a more expensive, long-term investment that may pay off big-time down the line, depending of course on the political situation in the region. Case in point: while it’s true that rentals are nearly always a less expensive option in Jordan, the recent influx of Syrian refugees and resulting increase in demand has likewise caused a spike in pricing. This of course also depends greatly on where in Jordan you plan on buying or renting property—East Amman, for example, is generally much less expensive than West Amman.
For those looking to bank on stability and a growing GDP, Jordan presents a largely positive property opportunity.