The housing market in Jordan is witnessing a downturn during Ramadan, compounded by rising construction costs and high interest rates. Experts indicate that these factors discourage homebuyers, leading to postponement of purchases. The market may experience recovery afterward, but requires strategic adjustments from developers to stimulate demand.
During Ramadan, Jordan’s housing market typically experiences a temporary slowdown, primarily as buyers and investors defer financial decisions. However, this year, the demand has been further exacerbated by rising construction costs that deter prospective homeowners and investors. Experts emphasize the need for significant challenges within the sector to be tackled if recovery is to occur post-Ramadan.
Mahmoud Salah, a housing expert, notes that developers are facing difficulties in maintaining profitability without escalating property prices, which deters already financially strained buyers. He mentions that high interest rates also limit access to home financing, particularly for middle-income families who now postpone purchases in anticipation of more favorable economic conditions.
Potential homeowners express frustration over their situations. Enad Qaisi, after years of saving, finds homeownership increasingly unattainable due to escalating prices and high loan rates, prompting a shift towards considering purchasing land instead. Noor Emad echoes similar sentiments, wherein hesitation prevails despite having adequate savings for a down payment, largely due to uncertainty stemming from high interest rates.
Although current stagnation persists, industry professionals remain optimistic about a post-Ramadan recovery. Nonetheless, the speed of this recovery remains unclear. Experts suggest that to rejuvenate market demand, developers may need to implement more flexible payment plans or seek government-backed incentives.
In conclusion, Jordan’s housing market faces considerable headwinds due to rising construction costs and elevated interest rates, particularly during Ramadan. This has resulted in decreased demand from potential homebuyers, who are hesitant to commit given the financial pressures. However, there remains hope for recovery post-Ramadan, provided that developers adapt their strategies and conditions improve.
Original Source: jordantimes.com
