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Acquire Property in Amman, Jordan

Written By: Jacquelyn Annete García Vadnais

Amman, Jordan has become appealing to many real estate investors due to its unique location in the world, stable government, and free market economy. In addition, Amman, Jordan also offers a very high quality of life to those that choose to reside there. For these reasons, there has been steady interest in acquiring property in Amman, Jordan for foreign real estate investors. Additionally, the attractive potential leads, and long-term path to citizenship for foreign real estate investors provide additional incentives to invest. If you are considering investing in Amman, Jordan, review the relevant information below:

A Brief History of Jordan

Jordan has a rich culture and fascinating history. Jordan’s history dates as far back as 90,000 years ago according to recent archaeological studies. That said, Jordan is also a part of the first agricultural cultures that were cultivating the land in the Fertile Crescent between the years of 8,500 – 4,500 BCE. In addition, Jordan is also home to many famous Biblical sites since the kingdoms of Ammon, Moab, and Edom are all located in Jordan that were famous from the Old Testament. These sites also include wonders such as Petra, which still remains carved into stone, which survived the invasion of the Roman Empire in 103 A.D. Where Jordan’s history changed a great deal was after the Prophet Muhammad died. After the creation of the first Umayyad Empire, Amman found itself as a major provincial city of the region know as Al-Urdun. Amman continued to flourish in the Abbasid Empire from 750-1250 A.D. until it changed power to the Mongols, then the Crusaders, the Ayyubids, and the Mamluks until finally being conquered by the Ottoman Empire in 1517. When the Ottoman Empire fell after World War I, King Abdullah was appointed a country with mainly nomadic citizens, which eventually became Transjordan, a sovereign state. In this period, Jordan was a part of many conflicts in the region relating to Israel, Palestine, Lebanon, and Syria. However, today, Jordan has established a powerful economy, and has established a thriving civil society.

Advantages to Investing in Amman, Jordan

Even though the local population has been challenged in terms of purchasing property in recent years, there is a large market for foreign direct investment or tenants that need rentals in Amman for potential property owners to consider. Here are additional factors that make Amman, Jordan an excellent choice in terms of real estate investment:

High Quality of Life:

Jordan has a very high quality of life available for those that have the budget to afford it. There is world class education, cuisine, and modern amenities in residential buildings. Jordan has such a rich culture and history, which means that many priceless archeological sites such as Petra are quite close for locals and foreign residents to enjoy as well. These factors, combined with the excellent professional and business ownership opportunities, make Jordan a very appealing place to reside.

Possibility of Legal Residency:

For foreign real estate investors, there is a clear path to residency and citizenship if they purchase a piece of property that is valued at least $US 282,000. After ten years, citizenship will be granted. This is a great option for those looking to have the option to live outside of their home country in the longer term.

High Rental Yields:

Rental yields in Jordan typically hover between 6.5% and 9%. The average property price is US$1,850 per square meter to purchase an apartment in Amman, Jordan. Due to the influx of refugees into the country, rental rates on smaller apartments have substantially raised across the board.

Rental Advance:

Rental contracts are typically paid one year in advance in Jordan, which provides real estate owners a considerable amount of capital up front when they are signing new tenants. Advances such as these are ideal for investing in additional real estate investment opportunities.

Future Market Outlook in Amman, Jordan

Amman, Jordan has been attracting a great deal of foreign direct investment due to the following factors:

Strategic Location:

Jordan has a very important strategic location given its proximity to powerhouses such as Dubai, European Union countries, and Asian markets. This has made Jordan appealing for many multinational companies to consider investing into.

Free Market Economy:

Jordan has a free market economy, which makes it also appealing for multinational companies to consider coming to. For this reason, there will be a demand for rental properties to be available to accommodate the professionals of multinational companies that have a presence in Jordan, particularly Amman.

From a regulatory standpoint, foreigners are allowed to purchase property, provided that the buyer's country of residence has a reciprocal relationship with the Kingdom of Jordan, and that the approval of the Cabinet/ Council of Ministers is obtained. Foreigners can only sell property five years after acquisition.

Stable Political Environment:

Jordan has a stable government that values the protection of foreign direct investors. Jordan is one of the more peaceful countries in the Middle East, which makes it a very attractive option to potential investors. Lastly, the Jordanian Government has planned carefully to create policies that encourage foreign direct investment.

Final Remarks on the Subject

The Jordanian Government has made many successful efforts to appeal to foreign direct investors. These efforts have resulted in making real estate investment quite valuable in the country. Even though there is a slightly negative spin from locals about inflated prices, there is still a market to be had for foreign real estate investors looking to make substantial rental yields on properties that they have acquired in Jordan. As Jordan, particularly Amman, continues to appeal to more multi-national corporations, there will be a perpetual demand for attractive rental properties in the city. Additionally, there will also be a pathway to citizenship for those who desire to reside in Jordan on a long-term basis as foreign real estate investors. As Jordan continues to establish itself as a strategic locale that bridges between the European Union and Asian markets, it will be fascinating to see what unique real estate investment opportunities develop in the Jordanian market as a result.

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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.

Jacquelyn has a JD/MBA from Suffolk University, and LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.

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