Market Uncertainty Grows as Housing Demand Declines During Ramadan

The Jordanian housing market faces increased uncertainty as Ramadan leads to a slowdown in demand, further aggravated by rising construction costs and high interest rates. Experts emphasize the need for strategies to stimulate the market, while potential buyers are increasingly frustrated by the inability to secure affordable homes.

Ramadan typically leads to a temporary decline in Jordan’s housing market due to buyers and investors delaying financial decisions. This year, however, escalating construction costs have exacerbated this downturn, according to industry experts. Key challenges must be addressed to revitalize the sector post-Ramadan. Housing expert Mahmoud Salah noted that while real estate activity usually slows during this period, rising material costs are further complicating the landscape for developers.

Developers face difficulties maintaining profitability without inflating property prices, which discourages potential buyers already burdened by financial pressures. Furthermore, high interest rates are hindering home financing accessibility, especially for middle-income families. With borrowings at peak levels, many prospective homeowners are opting to postpone purchases until there is greater economic clarity.

Individuals like Enad Qaisi express frustration over the current housing market. Despite years of saving, he feels that escalating prices and high loan rates are rendering homeownership unattainable. Similar sentiments are echoed by newlywed Noor Emad, who struggles with affordability and location concerns while feeling unsure about the timing to invest in a new home.

Although the housing market is presently stagnant, experts anticipate a rebound following Ramadan, albeit the rate of recovery remains uncertain. To stimulate demand effectively, developers may need to explore more flexible payment options or seek government-backed incentives to enhance market conditions.

The Jordanian housing market is currently experiencing a significant downturn due to the combined effects of Ramadan, rising construction costs, and elevated interest rates. While prospective homeowners express frustration and hesitation, industry experts remain hopeful for a rebound post-Ramadan. To revitalize the sector, addressing affordability challenges and enhancing financing accessibility will be crucial. The future of the housing market hinges on improvements to these pressing issues.

Original Source: jordantimes.com