Jordan's real estate industry, centered in the capital Amman, was relatively steady in 2016-17. Rents and sales prices increased little in the residential sector, but commercial rents and sales prices decreased somewhat. Much of this was due to the greater growth and quick expansion of recent years, which resulted in a plentiful supply of real estate, thus halting upward price movements. However, there is now a greater emphasis on quality, as well-planned, mainly higher-end projects attract consumers. Simultaneously, the industry has been impacted by rising taxes and expenses, while increased land prices and low building height restrictions hinder investment.
Outside the capital, significant developments have occurred, especially in Aqaba, and planned improvements to the Greater Amman Municipality's transportation infrastructure should begin to have an effect on real estate development in the coming years. The kingdom's overall economic situation may also improve as regional turmoil subsides, borders reopen, and Jordan strengthens its critical regional trading position. However, uncertainty continues to be a major element in the economy and, therefore, the real estate market.
According to the Department of Statistics, the country's population was 10.1 million in March 2018, up from 8.6 million in the most recent census in 2015. The rise may be mainly explained by a recent inflow of Syrian refugees, with the UN High Commission for Refugees reporting that by mid-2017, Jordan was home to 736,396 "people of concern," 659,593 of whom were Syrian. Amman has grown significantly in recent years, both in terms of population and physical area, having expanded from a core of seven hills. The city has expanded along new routes such as the motorway connecting to Queen Alia International Airport (QAIA), situated south of the capital. Regarding the capital city, the 2015 census estimated its population at 3.9 million, or about 45 percent of the entire population of the nation at the time the data was gathered. Irbid had a population of 1.6 million, while Zarqa had a population of 1.3 million, creating a northern cluster with Amman that accounts for the majority of Jordan's population. Elsewhere in the country, the three southern governorates of Aqaba, Ma'an, and Tafila reported populations of 160,000, 77,900, and 75,100 in 2015. However, Aqaba is the country's only international port and serves as the entry point for the majority of Jordan's imports.
Amman has long been split between a prosperous, sparsely populated western half and a less prosperous, densely populated eastern half. Additionally, the city has a long history of sheltering people fleeing persecution and conflict, ranging from Circassians in the nineteenth century through Palestinians in the twentieth century and, more recently, displaced Iraqis and Syrians.
Amman's population is about 45 percent of the country's total. PRIMARY FOCUS: Due to these demographics, Amman has been the real estate sector's focal point for many years, with the western sections of the city a target for higher-end projects. For example, Abdoun, Deir Ghbar, and Shmeisani have witnessed an increase in residential and commercial development, with Jabal Amman, the First Circle, and Jabal Al Weibdeh housing the majority of the city's high-end cultural and entertainment activities.
Recently, revitalization efforts in the downtown area have resulted in significant investment in the more central Abdali neighborhood. Al Balad is the ancient heart of Amman, including many historic buildings and historical monuments, including Jabal Al Qal'a, the Amman Citadel hill. This region is popular for tourist and shopping, as well as residential neighborhoods.