Tameer has a commitment towards its partners, customers and employees with a vision to be the ‘most trusted company in the real estate sector’. As promised, Tameer will hand over the units before the end of this year as we have been able to complete more than 85% of the skeleton work and almost 20% of the finishing work.
Our next major project in Jordan is a tower in the Al-Abdali development. This tower will be one of the highest in Jordan at more than 220 metres and will have a built up area of around 90,000 square metres.
The increase in fuel prices has had a drastic impact on the construction and real estate sector in Jordan. Steel and cement prices have also increased in the past year, reaching unprecedented highs and driving development costs up.
This, of course, has had a negative impact on the economy and the real estate sector in general. Nevertheless, developments costs are high everywhere in the world, not just in the kingdom, so Jordan might still be positioned as an appealing market for real estate businesses.
Customers must be conscious of the quality of the end product; price is not always the main indicator to make proper comparisons. Luxury homes are now built with better materials, improved craftsmanship and a wider choice of features compared to those built 10 to 30 years ago. However, with all the challenges that continue to arise, Tameer will still be able to deliver on its promise of giving people the chance to own homes for suitable prices.
The real estate market has been developing slowly but surely over the past few years. However, with all the new investments pouring into the kingdom, and the projects that the Greater Amman Municipality is undertaking, such as the master plan of Amman, we will witness a noticeable growth in the real estate sector which, in turn, will have a significant impact on the Jordanian economy.
Although Jordan has a very attractive investment environment, there are a number of challenges that face us as a developer. The obvious lack of government regulations and forward planning for the real estate sector and not having any non-governmental organization representing this industry are major drawbacks.
Another issue that some developers are facing is that attractive packages and incentives are only located in Amman, whereas they should be given to companies developing projects in rural and under-developed areas.
Where such incentives exist they are only given to government agencies, which means there is no motivation for non-government agencies to undertake development in rural areas. The lack of these incentives means that private developers have the added cost of site infrastructure including electricity, water and telecommunications.
On a wider scale, Jordan faces strong competition in the real estate market from countries offering a popular mix of sun and beach within easy reach of Middle East capitals. To ensure sustainable growth, the government is seeking to improve Jordan’s image abroad as a quality location and to organise several initiatives with that goal in mind.
Jordan has created a suitable business environment that attracts investment and embraces enterprise, and the quality of managerial staff and the country’s security are just a few examples of the benefits that are available to developers here in Jordan. Jordan still offers a land bank that is worth studying and some locations make it lucrative to investigate.
There are already indications that the market is softening. Real estate prices witnessed a slower rate of appreciation in 2007 than in 2006. Prices are estimated to rise 5%-10% on average in 2008. However, the market has not yet reached saturation and supply of housing of different levels is still being introduced in the market.
The Jordanian market is witnessing many developments that make it an attractive location for investments and prompt us to consider new projects in the kingdom.
We are looking to expand our investments and operations here by developing a number of projects in other areas of Amman, covering a multitude of developments including villas, retail malls, and mixed-use towers. We are also looking at developing projects to support the tourism sector in the near future if we manage to find an appropriate location.
Tuesday, July 1- 2008 @ 9:51 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.