Jordan to ease foreign residential land ownership, but will keep guardrails on size and location

Jordan is inching towards a residential property market open to foreigners. The House of Representative on Monday passed 20 out of 37 proposed amendments to the Real Estate Ownership Law, including provisions that would allow non-Jordanians to own land and property for residential purposes. The amendments cap land area c. one hectare, and is loosening the required governmental sign-off — foreigners would require the signature of the finance minister rather than the full Cabinet under the new amendments. Current ownership rules allow foreigners to own land for investment or industrial purposes only.

The amendments triggered criticism over concerns that foreigners could take up property in sensitive areas, such as border and archaeological sites — concerns that the government shut down, clarifying that the ban on foreign ownership still applies in holy, archaeological, and border zones. The reason for the ownership amendments, Local Administration Minister Walid Al Masri says, is that the current law blocked foreigners from owning standalone homes, including in the gated compounds ringing Amman in upscale areas like Al Jizah and Naour.

ZOOMING OUT- Jordan’s move to open up residential units for foreign ownership comes with caution that is an outlier in a region racing the other way, with the country still capping ownership and requiring governmental sign-off. Under the current regulatory landscape, foreign ownership of residential real estate is limited to the residency for investment framework, on the condition the property is valued at a minimum of JOD 200k (USD 282k) inside Amman or JOD 150k (USD 211.6k) outside, as well as a security clearance is provided from the Interior Ministry.