Returns on investment for individual investors can be good in Jordan. Rents are high and yields reasonable, due to the large influx of refugees from Iraq and Syria. But because of weak economic the country's residential real estate price index rose by only 0.3% y-o-y in Q1 2018, according to the Central Bank of Jordan. When adjusted for inflation, prices actually fell by 3.3%.

https://www.dls.gov.jo/ar/Pages/Real-EstateIndicators.aspx ( Department Of Lands & Survey)

Villa prices rose by 0.6% y-o-y (-3% inflation-adjusted), while apartments rose by 0.5% y-o-y price increase (-3.1% inflation-adjusted) in Q1 2018. In contrast, house prices fell by 2.1% (-5.6% inflation-adjusted) during the year to Q1 2018, based on the central bank figures.

The UAE-based property management firm Asteco produces figures based on observed sales prices. It saw a 1% y-o-y increase in Amman's apartment sales prices in Q1 2018, noting that "it is unknown whether these improvements are based on actual transactions".

In Amman's major districts:

• In Abdoun, the capital city's most affluent area, apartment prices rose by 4% to an average of JOD 1,425 (US$ 2,011) per square metre (sq. m.) during the year to Q1 2018, according to Asteco.
• In 4th Circle, apartment prices increased by 2% y-o-y to JOD 1,350 (US$ 1,905) per sq. m.
• In Sweifieh, the average apartment price was up by 1% to JOD 1,200 (US$ 1,693) per sq. m.
• In Um-Othainah, the average apartment was unchanged in Q1 2018 from a year earlier, at JOD 1,250 (US$ 1,764) per sq. m.
• In Al-Rabiah, apartment prices were also stable at an average of JOD 1,100 (US$ 1,552) per sq. m.
• In Der Ghabar, the average apartment price was also unchanged at JOD 1,200 (US$ 1,693) per sq. m.

There is a lot of negativity in the air as the prices are becoming higher and higher for a normal citizen to buy instead of renting and this is creating a big problem for many," says Amman property agent Fayez Hannan. Real estate transaction volumes fell by 14% in 2017, according to the Department of Land and Survey (DLS).

One factor that limits Jordanians buying homes is high mortgage rates. Arab Bank, Jordan's largest regional bank, charges a lending rate of 7.5% per annum. Yet loans to the construction industry have been rising. In April 2018, the total amount of credit to construction rose by 8.76% to JOD 6.74 billion (US$ 9.51 billion) over the same period last year, based on the figures from the Central Bank of Jordan.

In hopes of stimulating capital inflows in the country, Jordan approved an investment program that grants citizenship or permanent residency of non-Jordanians in early 2018. This program includes permanent residency for non-Jordanians who purchase properties worth a minimum of JOD 200,000 (US$ 282,216) and hold the properties for 10 years. Grants of Jordanian citizenship or residency are limited only to 500 applicants per year, according to State Minister for Media Affairs and Government Spokesperson Mohammad Momani.

Foreigners are allowed to buy property in Jordan, provided Jordan and the buyer's country of residence have a reciprocal relationship, and that the approval of the Cabinet (Council of Ministers) is obtained. Foreigners can only sell the property five years after acquisition. Most properties for rent and for sale can be found in Amman, Jordan's capital city.

Analysis of Jordan Residential Property Market »

Rental Yields

Jordan: gross rental yields good at 6.5% to 9%

Property prices. Typically, it costs around US$1,850 per square metre to buy an apartment in Jordan’s capital Amman - less at the lower end, more for larger apartments, according to our sample (though this may not apply to the very smallest apartments).

Property rents. Rental rates in Amman are rather high, due no doubt to the large number of refugees who have poured in to the country. Smaller apartments yield significantly more than larger apartments.

Property returns. Gross rental yields on apartments in Amman are good.

Yields on villas are somewhat lower. We researched villas in previous years but this year were unable to gather data. The lower yields are because villas tend to cost substantially more on a per square metre basis, because of the land value.

Property buying costs. Round trip transaction costs on the purchase of residential property in Jordan are moderate to high, especially in comparison with the rest of the Middle East. See our Jordan residential property Buying Guide and Residential property transaction costs in Jordan compared to the rest of the Middle East.

Jordan: gross rental yields good at 6.5% to 9%

Property prices. Typically, it costs around US$1,850 per square metre to buy an apartment in Jordan's capital Amman - less at the lower end, more for larger apartments, according to our sample (though this may not apply to the very smallest apartments).

Property rents. Rental rates in Amman are rather high, due no doubt to the large number of refugees who have poured in to the country. Smaller apartments yield significantly more than larger apartments.

Property returns. Gross rental yields on apartments in Amman are good.

Yields on villas are somewhat lower. We researched villas in previous years but this year were unable to gather data. The lower yields are because villas tend to cost substantially more on a per square metre basis, because of the land value.