Jordan .. Price of a Dunum in Abdoun and Dabouq Could Reach 1.5 Million Dinars
Al-Taj News – Head of the Housing Investors Association Majed Ghousheh said that rising land prices, particularly in serviced areas within the capital Amman, along with increased construction, finishing, transportation, labor, fees, taxes, and financing costs, have been reflected in residential apartment prices.
Ghousheh 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, according to what was reported by Al-Mamlaka TV.
He explained that land costs may account for between 40% and 50% of the price of an apartment in high-priced areas, noting that if an apartment is priced at 200,000 dinars, the land alone could account for around 80,000 dinars of the cost.
Ghousheh pointed out that the price increases do not affect all areas of the capital to the same extent, explaining that increases in East Amman remain limited compared with other areas experiencing higher demand and elevated land prices, while finishing costs also vary according to the area and the level of construction.
Ghousheh 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 land share of the cost of a housing unit.
He also called for facilitating the licensing of small apartments with areas of around 100 to 120 square meters, making them more suitable for the purchasing power of young people and low-income groups, rather than having part of the supply limited to apartments measuring 150 and 200 square meters or more.
He noted that vehicle parking requirements are one of the challenges facing the expansion of small-apartment construction, calling for regulatory and licensing solutions that would help provide housing units with suitable areas and prices.
Regarding financing, Ghousheh said that bank interest rates, which range between approximately 7.5% and 9%, are considered high and make purchasing apartments more difficult, stressing the need for cooperation among banks, the Greater Amman Municipality, and the authorities responsible for licensing to reach solutions that would enable the provision of apartments at suitable prices and sizes.
Ghousheh confirmed that there are no understandings among major investors to impose specific price levels, while noting at the same time that purchasing power during the current summer was weaker compared with last year and the year before.
