The Jordanian housing market is facing a downturn during Ramadan due to rising construction costs and high interest rates, which hinder buyer affordability and access to financing. Experts believe that measures such as flexible payment plans or government incentives may be necessary to stimulate demand post-Ramadan.
The housing market in Jordan traditionally experiences a slowdown during Ramadan due to buyer hesitance. This year, however, demand is further weakened by rising construction costs. Industry experts indicate that to revitalize the sector post-Ramadan, essential challenges need to be addressed. According to Mahmoud Salah, a housing expert, developers are struggling with increased material expenses, making it difficult to maintain profitability without elevating property prices, which deters financially strained buyers.
High interest rates are also inhibiting home financing, particularly impacting middle-income families who find it increasingly difficult to secure affordable loans. Many potential buyers are delaying their purchases, anticipating more favorable economic conditions. For example, Enad Qaisi expressed his frustration regarding the soaring prices and high interest rates, which are pushing him to consider purchasing a plot of land instead of an apartment.
Newlywed Noor Emad shared similar sentiments, indicating that despite having savings for a down payment, the current climate of high interest rates makes them hesitant to invest in a home. Industry analysts remain hopeful for a recovery in demand after Ramadan; however, this rebound’s speed is contingent on improved market conditions. Developers may need to offer more flexible payment plans or government-supported incentives to encourage home purchases.
In summary, the housing market in Jordan is currently experiencing a decline in demand exacerbated by heightened construction costs and elevated interest rates. Prospective homeowners face significant challenges, leading them to postpone purchases. Experts suggest that addressing these issues and providing incentives could revitalize the market post-Ramadan. Without proactive measures, the recovery might take longer than anticipated.
Original Source: jordantimes.com
