AMMAN — As 2025 nears its end, Jordan’s housing sector is showing a "mix" of resilience and caution, reflecting "broader" economic pressures and changing buyer behaviour, according to stakeholders.

 

While construction activity remains robust, demand and affordability continue to temper overall market performance.

 

Data from the Department of Land and Survey showed that licensed building areas increased by more than 20 per cent early this year compared with 2024, signalling "ongoing" confidence among developers.

 

The total real estate trading fell by around 8 per cent during the first ten months of the year, suggesting that many buyers are holding back.

 

Industry experts point to several factors behind this cooling demand. "Overall demand in the real estate market has dropped by nearly 10 per cent compared with last year," housing expert Mahmoud Salah told The Jordan Times.

 

He said that interest in land decreased by 7 per cent, while demand for residential apartments saw a smaller decline of less than five per cent.

 

Stakeholder Majdi Tawfiq highlighted the positive impact of regulatory efforts. "Measures to improve the investment environment through updated legislation and supportive policies have strengthened market confidence and liquidity," he said.

 

Tawfiq also observed a "shift" in buyer preferences such as rising living costs and higher borrowing rates are driving demand for more compact, affordable homes rather than large and high-end properties. "Affordability and practicality are now the main considerations," he added.

 

For many prospective homeowners and financial constraints remain major hurdle. "I have been saving for years to buy an apartment, but with rising prices and expensive loans, owning a home feels impossible," said Samer Ali, a potential buyer.

 

He added "Each time I find something within my budget; prices rise again before I can make the purchase."

 

As Jordan approaches the year’s end, the housing sector faces both opportunities and challenges. While active construction and government incentives offer some optimism, weak purchasing power and regional uncertainties continue to cloud the outlook.

 

Market watchers say the "key" question for 2026 will be; whether the "improved" affordability measures and "sustained" investor confidence can revive demand and bring balance to the market.