Dr. Hamad Kasasbeh

Real estate occupies a central place in the saving and investment decisions of Jordanians. It serves as a store of wealth, a principal source of collateral for financing, and a potential source of income. Yet its large weight in the economy raises a question that goes beyond prices and transaction volumes: to what extent is property wealth being converted into new businesses, jobs, and incomes? Ownership protects savings, but it does not drive the economy unless it is connected to productive activity.

Real estate trading in Jordan exceeded seven billion dinars in 2025, a figure that demonstrates the sector’s scale and its ability to attract liquidity. A high value of transactions, however, does not necessarily indicate an increase in productive investment. It may simply reflect the transfer of assets between owners or rising prices. A deal that changes the name on a title deed does not by itself expand productive capacity; the economic impact begins when land is developed, a business is established, or an activity is operated on the site.

For this reason, rising property prices should not be equated with the creation of new economic wealth. The value of undeveloped land may increase and generate a paper gain for its owner without creating a job, a good, or a service. Conversely, a lower-priced site may contribute more to the economy if it hosts a small factory, a logistics centre, or a scalable service business, generating recurring income and stimulating activity across related sectors.

Keeping serviced land outside productive use is not merely a missed opportunity for its owner; it also imposes a cost on society. Roads, water networks, and electricity may be extended to such areas without sufficient activity or population density to justify the expenditure. Efficient land management therefore becomes a public fiscal and urban issue, because dispersed expansion raises the cost of services and absorbs resources that could otherwise strengthen existing infrastructure.

The productivity of a location also depends on more than its size or market price. It is shaped by its proximity to transport, services, markets, and places of employment. Land within an integrated urban environment is more capable of attracting investment than an isolated plot, even when the latter is more expensive. Improving the sector’s performance therefore does not mean continuous construction; it means selecting the most suitable use, reducing travel time, and directing services towards areas that can accommodate residents and businesses efficiently.

This pattern also affects bank lending. Because property is easy to value and mortgage, it remains the preferred form of collateral, while financing small, technology-based, and emerging businesses requires a deeper assessment of markets, management, and cash flows. Excessive reliance on collateral can therefore direct credit towards those who own the largest asset rather than those who present the strongest project. Lending tools should give greater weight to revenue-generating capacity alongside traditional security.

To turn this discussion into measurable policy, Jordan could develop a real estate productivity index showing the investment, employment, and income generated by different uses, while distinguishing among residential, industrial, tourism, and logistics activities. An annual government report could also track the wider effects of development on construction, transport, services, and local procurement, rather than relying only on prices and transaction figures that do not reveal the sector’s actual contribution to the economy.

The 2026 draft amendment to the Real Estate Property Law seeks to modernise registration, documentation, and digital services, while addressing common ownership and off-plan sales. Its importance, however, should not be measured only by faster transactions, but by whether it helps move property into productive use. This requires accurate market data, forward-looking planning, and coordination among land uses, transport networks, water and energy systems, and investment zones.

The government’s task is therefore to move the real estate file beyond registration and trading and place it at the heart of growth policy. This can be supported through voluntary mechanisms for consolidating small or jointly owned plots, investment funds for industrial estates, affordable housing, and logistics centres, and arrangements that allow owners to contribute land in return for a share of project returns. Measuring property only by its price reveals half its value; the more important half lies in the jobs, output, and income it creates.