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Tue 6 Jul 2010 05:46 PM

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Jordan property sales see 18 percent rise

Lower prices pushed up demand in Jordan; oversupply eases - data.

Jordan property sales see 18 percent rise
(Getty Images - for illustrative purposes only)

The total value of property deals in Jordan rose 18 percent in the first six months of the year compared to the same period last year as lower prices pushed up demand and oversupply eased, official data showed Monday.

Department of Land and Survey figures showed turnover stood at 2.337 billion dinars ($3.29 billion) up to end of end of June against 1.974 billion dinars in Q1 2009.

Jordan’s once-booming property sector was underpinned by strong demand from Iraqis, Palestinians, expat Jordanians and Lebanese seeking a safe haven in a country with a record of political stability.

A relentless rise in domestic property prices had fostered a preference for real estate over equities among many Jordanians whose wealth is tied to property assets.

The aid-dependant economy has been hit by the global financial crisis as investment flows from the oil producing Gulf region plummeted along with a drop in remittances from its sizeable expat labor force.

The official data, which includes foreign purchases of apartments and commercial property, posted a 32 percent rise in first half of 2010 to 148.5 million dinars compared to the same period last year.

Iraqis bought a total 92.8 million dinars worth of property, top among the list of non-Jordanian investors followed by Saudis who purchased 8.6 million dinars worth of real estate. Lebanese invested 7.5 million dinars. The total value of property transactions fell 21 percent in 2009 to 4.74 billion dinars compared to the previous year but foreign purchases remained resilient rising 35 percent against the previous year. (Reuters)

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