AMMAN —
Investors in the real estate sector have demanded a reduction in the
sales tax on building materials, warning of an increase in apartment prices in
the near future, according to Al-Rai daily.
اضافة اعلان
Realtors
said that an increase in shipping prices was causing a rise in the prices of
imported building materials — including glass, supplemental iron and aluminum —
and that these price increases are also causing apartment prices to increase.
Zuheir
Al-Omari, an investor in the housing sector, asked the
government to reduce the
sales tax on building materials, among them iron, cement, and concrete. He
explained that these materials contribute around 30 percent to construction
costs.
Omari
claimed that a reduction in the sales tax on building materials will contribute
to preventing an increase in apartment prices in the near future, explaining
that an increase in shipping prices has had negative effects on investors.
Muhammad
Al-Saudi, also an investor in the housing sector, agreed with Omari that
lowering sales taxes on building material would slow down the increase in
apartment prices.
He
declared that the demand for long-term apartments has been declining recently,
and that is a result of a decline in buying power and the effects of the
COVID-19 pandemic, in addition to the normal drop in demand for apartments during the
winter.
Saudi
stated that the prices of imported building materials has contributed to an
increase in costs for investors, because of the increase in shipping prices. If
this pressure is not reduced, it will be reflected in the prices of new
long-term apartments, he said.
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