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August 14 2022 4:21 PM ˚
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Land Department reports an 84.5% increase in land sales in 2021

amman
The real estate sector in Jordan has generally witnessed some encouraging growth in 2021. (Photo: Envato - elements)
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AMMAN — The latest figures from the Department of Land and Survey (DLS) show that land purchased by companies operating in Jordan has seen an 84.5 percent increase compared to 2019’s sales, indicating a substantial growth in this sector.  The data was collected from the first 11 months of 2019 and 2021, which specifically tracked land bought by companies, and not by individuals.  اضافة اعلان

The real estate sector has generally witnessed some encouraging growth in 2021. The Jordan News Agency, Petra reported that Jordan’s real estate trade volume from the first eight months of this year has increased by 11 percent, reaching JD308.8 billion, compared to the same period of 2019. However, from January to August of this year, the DLS's revenues stood at approximately JD126 million, which represents a 12 percent decrease compared to 2019.

During the first eight months of 2021, reports from the DLS also show a 33 percent increase in apartment sales, a 54 percent increase in land sales, and a 49 percent rise in total real estate sales recorded in the Kingdom.

DLS media spokesperson, Talal Zaben, told Jordan News that the DLS department’s latest reports on land sales from companies have not made any comparisons between the years 2021 and 2020, largely because it would be an unfair comparison.

“During the first four months of 2020, the country went through unprecedented national lockdowns, accompanied by restricted movement and airport closures during the summer. If we were to estimate the increase from last year to this year, it would possibly be 200 percent or more. That’s not a fair comparison. This is why we selected 2019’s data for comparison instead,” he said.

The total number of lots of land acquired by companies since the beginning of the year reached 4,312 lots, compared to 2,337 lots sold in 2019. Zaben explained that most of the companies that are purchasing these lands are “local companies, and the sellers are generally individual citizens, who are not necessarily representing any corporations during the transaction.”

Companies investing in these lots of land may have different investment goals, said Zaben. “Whenever a company buys a lot of land, it has to state its intent for the purchase of the specific land, which can have a diverse array of purposes, from manufacturing to housing.”

Zaben explained that most of the sales hike currently occurring in the real estate sector are a consequence of recent legislative reforms introduced by the government. Most notable are the economic incentives that provide full exemptions on registration fees for the first 150 sq.m. purchased. Housing companies also currently enjoy a 50 percent decrease in registration fees compared to previous years.

In addition to these incentives, a key measure that has most likely incentivized this prosperity in the real estate sector is a policy introduced by the government nearly two years ago, said Zaben. “We noticed that many of the land deeds were still registered under the name of deceased landowners, which prevented sales activity and created stagnation in the market.”  Under the amended regulations, the deeds can be transferred to the rightful inheritors free of registration fees, he said, urging people to make the most of these incentives, which will expire at the end of December 2021.

Kayed Al-Adwan, the head of Kayed Real Estate Office, told Jordan News that while some desirable activity is currently present in the land market, not everyone is a beneficiary. “Jordanians with average income levels do not have the same financial capacity as companies,” especially if a hike in prices accompanies the sales activity. 

Some red tape and challenges, however, remain in the real estate sector, according to Adwan, namely in relation to construction permits that are issued by the Municipality of
Greater Amman and require lengthy processes and time, especially for non-Jordanians.

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