Commercial real estate prices fall 12%

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Heba Al-Issawi

Amman- The commercial real estate price index fell in the first quarter of this year by 12.2% compared to the same period last year, according to figures issued by the Central Bank.
The index reached 95.1 points at the end of March, compared to 108.3 points in the same period last year.
It is noteworthy that commercial real estate includes buildings used for commercial purposes such as complexes and shops, and does not include commercial land.
While the commercial land price index rose 1.5 percent to 105.7 points, while the industrial land price index rose 1.1 percent to 130.3 points.
As for the industrial real estate price index, it decreased by 1.2 percent to 92.5 points, compared to 94.8 points in the same quarter of last year.
Thus, the non-residential real estate index (commercial, industrial, other) declined in the first quarter by 5.7% to 97.4 points, compared to 103.3 points in the same period of 2020.
As for the residential land price index in the first quarter of this year, it decreased by 2.2% compared to the same period last year to reach 139.7 points.
The index of land prices outside regulation increased by 1.3 percent to 108.8 points.
Thus, the general index of land prices, whether (commercial, residential and industrial outside regulation), declined during the first quarter by 1.3 percent to 130.5 points, compared to 132.2 points in the same period last year. According to the data, the relative importance of lands from the total real estate was distributed over residential lands by 37.2%, unregulated lands by 12.6%, commercial lands by 2.7%, and industrial lands by 1.8%.
The price index of apartments in the Kingdom fell during the first quarter of this year by 1.2% to 106 points, compared to 107.3 points during the same period last year, according to central bank data.
The data within the item of the real estate asset price index in the Kingdom showed that the villa price index in the Kingdom also decreased by 0.9% in the first quarter of this year to 97.8 points compared to the same period of 2020.
While the house price index fell in the first quarter of this year by 1.7 percent.
Thus, the general index of residential real estate prices in the Kingdom (villa, house, apartment) decreased in the first quarter of this year by 1.2% compared to the same quarter of last year.
The relative importance of residential properties was distributed among apartments by 38.1%, houses by 3.6%, and villas by 1.9%.
Thus, the price index of real estate assets in the Kingdom (land and apartments, residential and non-residential) decreased by 1.3% in the first quarter of this year to 118.8 points, compared to 120.4 points in the same period last year.
The real estate price index in the Kingdom is prepared in cooperation with the Central Bank of Jordan and the Department of Land and Survey, based on the data available at the Department of Land and Survey for various types of real estate assets; Where the weighted average price related to real estate transactions completed during a certain period of time was measured.
2012 was chosen as the base year for calculating the index, taking a relative weight for each basin, depending on the trading volume of each basin in the base year. Real estate and at the level of the governorates of the Kingdom.
The real estate price index was a demand of economists in Jordan, but the Central Bank included it in its recent periodic bulletins, to measure the change in the prices of buildings and land in each quarter, and for the years from 2005 to 2013. As for the relative importance of real estate assets in the index, it was distributed by 43.6% For residential real estate, 2.1% for non-residential real estate, and 54.3% for land.





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