Amman – Residential building activity in Jordan grew during the first seven months of this year, with licensed residential floor space increasing by 10.7% and accounting for 81.6% of the total licensed building area. Experts said the figures reflect continued activity in the sector and ongoing demand for housing.
According to the latest report by the Department of Statistics on building permits, licensed residential floor space rose to approximately 4.77 million square meters, compared with 4.31 million square meters during the same period last year.
Residential activity grew at a faster pace than the overall increase in licensed building space for all purposes, which stood at 4.7%. Total licensed building space reached approximately 5.84 million square meters, compared with 5.58 million square meters during the same period last year.
The number of building permits issued during the first seven months of the year also increased by 1.7% to 14,361 permits, compared with 14,124 during the corresponding period last year.
Experts and investors in the housing and real estate sectors said the increase in licensed residential space reflects continued activity and housing demand, supported by factors including demand, financing availability and relatively stable prices. They stressed, however, that the figures should be interpreted by distinguishing between an increase in licensed space and the volume of new housing projects actually being developed.
Majed Ghousheh, chairman of the Jordan Housing Investors Association, said the figures indicate an improvement in residential licensing activity, noting that the increase in residential space is a positive indicator of continued housing demand and confirms that construction activity remains primarily concentrated in the residential sector.
Ghousheh said the growth in residential licensing is linked to several factors, including continued housing demand driven by population growth and the formation of new households, as well as seasonal activity during the summer and the return of expatriates. He also cited licensing fee reductions and exemptions that encouraged owners of existing buildings to complete licensing procedures and regularize their status.
Economic expert Iyad Abu Haltem said the increase in licensed residential space and the number of permits reflects improved construction activity, noting that the activity extends to other cities and is not limited to the capital.
Abu Haltem explained that relatively stable prices and the availability of housing finance and lending have supported demand and investment activity, alongside tax exemptions for certain apartments below a specified size. He said continued access to financing remains one of the factors supporting the sector.
He added that current indicators support continued investment activity in housing amid what he described as strong demand and increased licensed residential space. At the same time, he stressed the importance of monitoring interest rates and construction costs, particularly cement and steel prices, given their direct and indirect impact on demand and investment.
Real estate investor Abdulsalam Kanaan said relative regional stability had encouraged investors to build, alongside increased demand from buyers. He said this had positively affected investment in the real estate sector, while noting that prices are influenced by rising land costs.
Department of Statistics data show that the majority of construction activity remains concentrated in the Central Region, which accounted for 73% of total licensed building space, the same share recorded during the corresponding period last year. The Northern Region’s share increased by 1.9 percentage points to 21%, while the Southern Region’s share declined by the same amount to 6%.
Ghousheh attributed the concentration of activity in serviced areas to factors including the availability of services, infrastructure and employment opportunities, which continue to play a key role in directing residential investment.
Meanwhile, Department of Statistics data show that new buildings and additions to existing buildings accounted for 58.4% of total licensed space during the first seven months of this year, reaching approximately 3.4 million square meters, compared with around 3.5 million square meters during the same period last year, a decline of 2.9%. Existing buildings that were subsequently licensed accounted for the remaining 41.6%.
Ghousheh explained that the increase reflects a combination of licensing for new projects and buildings, as well as the regularization of existing buildings that had previously been constructed without permits. Therefore, he said, an increase in residential space alone is not sufficient to determine the scale of new residential investment.
He noted that investors remain cautious about launching new projects amid land prices, construction and financing costs, and fees, in addition to the gap between apartment prices and purchasing power. However, continued demand, particularly for relatively small and mid-sized apartments, has encouraged investors to focus more on units with sizes and prices closer to the purchasing capacity of middle-income families and to prioritize locations where there is actual demand.
Overall, indicators for the first seven months of this year show continued growth in residential licensing activity, with licensed residential space increasing and accounting for the largest share of total licensed space. Experts said the continuation of this trend and its impact on the expansion of new housing projects will remain linked to demand levels, construction and financing costs, and land prices.
Source: Al-Ghad
