Housing Investors: Rising Land Prices and Interest Rates Weaken Citizens’ Ability to Buy Apartments

Al-Taj News – Head of the Housing Investors Association Majed Ghosheh said that rising land prices, particularly in serviced areas within the capital Amman, along with increases in construction, finishing, transportation and labor costs, fees, taxes, and financing costs, have affected the prices of residential apartments.

Ghosheh added that land prices in some areas, such as Abdoun, Dabouq, and Deir Ghbar, have in some cases exceeded 1,200, 1,400, and 1,500 dinars per square meter, respectively, meaning that the price of a dunum could reach around 1.5 million dinars.

He explained that the cost of land may account for between 40% and 50% of the price of an apartment in high-priced areas, noting that if an apartment costs 200,000 dinars, the land alone could account for around 80,000 dinars of the cost.

Ghosheh noted that the rise in prices does not affect all areas of the capital at the same level, explaining that increases in eastern Amman remain limited compared with other areas that are witnessing higher demand and elevated land prices, while finishing costs also vary depending on the area and the level of construction.

Ghosheh called on the Greater Amman Municipality to consider allowing greater building heights in new areas, explaining that permitting the construction of 6 floors instead of 4 would distribute the cost of land across a larger number of apartments and reduce the share of land in the cost of a residential unit.