Jordan's Real Estate Does Better in Q2

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(DUBAI, UAE) -- Improved home financing and developers securing bank finance has allowed Jordan's real estate market to record the first quarterly growth since 2008, according to a new report from the region's leading property management company, Asteco, headquartered in Dubai. "The Jordan real estate market has begun to show signs of activity in prominent locations as landlords are offering better value for money," said Elaine Jones, CEO, Asteco Property Management.

The Jordan Report Q2 2010 found that sales prices in the country have increased between one and 3 percent, with rentals jumping up to 4 percent. Small and medium-sized properties were particularly popular with tenants seeking affordable prices.

"We have witnessed a marginal increase in transactional activity with sales of individual apartments improving. There has been strong demand for larger four bedroom units of around 400 square metres plus," said Hussein Safadi, General Manager - Jordan, Asteco.

"Despite this improvement, overall demand continues to be weak as potential investors are taking a cautious approach; however, prices have seen marginal increases. The cost of construction continues to remain high and subsequently the real estate market has yet to see any strong price movements," added Safadi.

Abdoun and Um-Othainah continue to be the most expensive areas for apartments sales, commanding $1,400 per square meter, with 4th Circle close behind at $1,267 per square meter - all up 3 percent on Q1.

In the rental market prices rose in many areas over the past three months. Abdoun continues to outshine other areas with an average price of $9,390 per year - a 3 percent increase - but the largest percentage rise in Q2  was in the less expensive 4th Circle, where annual rents jumped 4 percent to average $4,496.

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