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Property sales dip in jordan but more foreign real estate investors are buying, figures show

The total value of property deals was down 38% to 2.78 billion dinars in the first eight months of 2009

compared to the same period a year earlier, the official data from the Department of Land and Survey shows.

The figures also show that turnover stood at 4.46 billion dinars in the first eight months of 2008 before the impact of a global downturn began to slow economies across the Gulf region, hurting business and dampening domestic consumption.

But foreign purchases of apartments, commercial units and real estate assets rose 22% to 169.1 million dinars in the same period in 2009 against the first eight months of 2008.

Iraqis bought a total 79.7 million dinars worth of property, top among the list of non-Jordanian investors followed by holders of US passports – mostly Jordanian expatriates living abroad – who bought 17 million dinars worth of property.

The government’s revenues from property sales also fell 38% to 174.2 million dinars in the first eight months of the year, according to the official data.

Analysts point out that Jordan’s economy has been hit by the global financial crisis as investment flows from the oil producing Gulf region plummeted along with a drop in remittances from its sizeable expatriate labour force.

Alongside demand from Arabs in neighbouring countries, Gulf investors flush with oil revenue have poured hundreds of millions of dollars over the last decade into the real estate market, attracted by free market policies and relatively low prices compared with other regional markets.