Residential Real Estate Leases - Jordan

The projected revenue of the Residential Real Estate Leases market market in Jordan is expected to reach US$4.77bn in 2024.
Among the different segments, House Leases dominate the market with a projected market volume of US$2.71bn in 2024.
The market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 6.00%, leading to a market volume of US$6.38bn by 2029.
The demand for residential real estate leases in Jordan has significantly increased due to the growing expatriate population.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Jordan has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing demand for rental properties among the population. Many individuals and families are choosing to rent rather than buy a property due to various factors such as financial constraints, flexibility, and changing lifestyles. Renting allows people to have a place to live without the long-term commitment and financial burden of purchasing a property.

Trends in the market: Another trend in the market is the rising popularity of furnished apartments. Many tenants prefer to rent fully furnished properties as it saves them the hassle and expense of buying furniture. This trend is particularly prevalent among expatriates and young professionals who are looking for convenience and a hassle-free living experience. As a result, landlords are increasingly investing in furnishing their properties to attract tenants and maximize their rental income.

Local special circumstances: The political stability and economic growth in Jordan have also contributed to the development of the Residential Real Estate Leases market. The country has been relatively stable compared to its neighbors, which has attracted foreign investors and expatriates. The influx of expatriates has increased the demand for rental properties, especially in major cities like Amman. Additionally, the government has implemented policies to encourage foreign investment in the real estate sector, further boosting the market.

Underlying macroeconomic factors: The growth of the Residential Real Estate Leases market in Jordan can be attributed to several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, which has resulted in an increase in disposable income and purchasing power among the population. This has allowed more people to afford rental properties and has driven up demand in the market. Furthermore, the population growth and urbanization in Jordan have also played a role in the development of the market. As more people move to cities in search of better job opportunities and a higher standard of living, the demand for rental properties has increased. This trend is expected to continue in the coming years, further driving the growth of the Residential Real Estate Leases market. In conclusion, the Residential Real Estate Leases market in Jordan is experiencing significant growth due to increasing customer preferences for rental properties, the rising popularity of furnished apartments, political stability, economic growth, and underlying macroeconomic factors such as population growth and urbanization. These factors have created a favorable environment for the development of the market, and it is expected to continue to grow in the future.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Jordan

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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