Market Uncertainty Increases as Housing Demand Diminishes During Ramadan

During Ramadan, the housing market in Jordan typically slows; however, rising construction costs have intensified this decline. Experts indicate that high interest rates and financial constraints discourage potential buyers, leading to frustrations among those seeking homeownership. A post-Ramadan recovery is anticipated, but the pace remains uncertain without market improvements.

The housing market in Jordan typically experiences a short-lived downturn during Ramadan, as buyers and investors delay financial decisions. However, this year, heightened construction costs have exacerbated the decline in demand. Industry experts have indicated that various challenges must be resolved for the sector to regain its momentum post-Ramadan.

Mahmoud Salah, a housing expert and developer, explained, “Real estate activity usually slows during the Holy Month, but this year, developers are also grappling with increasing material costs.” Developers face the dilemma of maintaining profitability without raising property prices, which discourages buyers already facing financial challenges.

The current high interest rates further complicate the landscape, making home financing increasingly inaccessible, particularly for middle-income families. As borrowing costs rise to their highest levels in years, potential buyers are deferring purchases, awaiting signs of economic stabilization.

For prospective homeowners, these obstacles provoke significant frustration. Enad Qaisi remarked, “I have been saving for years to buy an apartment, but with rising prices and expensive loan rates, homeownership feels increasingly out of reach,” indicating his contemplation of purchasing land instead.

Newlywed Noor Emad also expressed her uncertainty, stating, “We have enough savings for a down payment, but we’re hesitant to invest.” Despite this market stagnation, experts predict a possible rebound after Ramadan, although the timeline for recovery remains unclear, necessitating potential measures such as flexible payment options or government incentives to drive demand.

In summary, the Jordanian housing market is currently characterized by a slowdown due to the Ramadan season, compounded by rising construction costs and high interest rates. Industry experts highlight the need for innovative solutions to stimulate demand, projecting potential recovery post-Ramadan while acknowledging the challenges faced by prospective homeowners. The market remains uncertain, and careful planning will be essential for developers and buyers alike.

Original Source: jordantimes.com