A Guide to Buying Property in Amman for Foreign Investors

Investing in property in Amman, the capital of Jordan, can be a significant opportunity for foreign investors looking to diversify their portfolios. With its rich history, strategic location, and developing real estate market, Amman offers various options for investment. This guide outlines essential steps and considerations for foreign investors interested in purchasing property in this vibrant city.

Understanding the Real Estate Market in Amman

The real estate market in Amman has seen considerable growth over the past decade, driven by a growing population and economic developments. Key areas to consider include:

• Abdoun: Known for its upscale properties and proximity to embassies.
• Jabal Amman: A historical area that attracts expatriates and those looking for cultural richness.
• Shmeisani: A commercial hub that is ideal for investment in office spaces.

Legal Considerations for Foreign Investors

Before diving into the market, it’s crucial to understand the legal framework for foreign property ownership in Jordan. Foreigners are allowed to buy property under certain conditions:

• Non-Jordanian entities can own real estate in specific areas approved by the government.
• Foreign investment properties are generally limited to residential apartments and commercial properties.
• It's advisable to engage a local attorney specializing in real estate to navigate the legal requirements and protect your investment.

Steps to Buy Property in Amman

Follow these steps to navigate the buying process effectively:

1. Research: Thoroughly research the neighborhoods and current property prices to understand market trends.
2. Engage a Realtor: Work with a reputable local real estate agent who understands the market well and can help you find properties that meet your investment criteria.
3. Property Inspection: Always conduct a comprehensive inspection of the property to ensure it meets your expectations and requirements.
4. Negotiate the Deal: Once you find a suitable property, negotiate the terms with the seller to reach a mutually beneficial agreement.
5. Legal Due Diligence: Ensure all legal documents are in order, including the title deed and any permits required for foreign ownership.
6. Finalize the Purchase: Sign the sale agreement in the presence of a notary public and complete the necessary paperwork to transfer ownership.

Financing Your Property Purchase

Foreign investors often face unique challenges when it comes to financing real estate purchases in Jordan. Here are a few options:

• Cash Purchase: This is the most straightforward method of buying property, reducing complications with financing.
• Local Bank Loans: Some banks in Jordan offer mortgage products to foreign buyers, although terms may vary.
• Investors Fund: Consider joining an investment fund that focuses on Jordanian real estate for a higher investment leverage.

Taxes and Fees Associated with Property Purchase

It’s essential to factor in the additional costs associated with buying property in Amman:

• Transfer Fees: A registration fee of approximately 4% of the property value is typically charged.
• Annual Property Tax: This varies depending on the property location and size.
• Real Estate Agent Commissions: Generally, a commission ranging from 2% to 5% of the property value is expected.

Post-Purchase Considerations

Once the property has been purchased, consider the following:

• Property Management: If you intend to rent the property, hiring a local property management company can help you manage tenants and ensure maintenance.
• Insurance: Obtain property insurance to protect your investment against unforeseen events.
• Stay Informed: Keep up to date with local regulations and property market trends to optimize your investment.

Conclusion: Investing in property in Amman presents exciting opportunities for foreign investors. By understanding the market, adhering to legal requirements, and considering the financial implications, investors can make informed decisions that align with their financial goals. With a growing economy