When it comes to property investment, it is vital to identify and invest in markets that have the potential to result in future growth. Many foreign property investors tend to invest in relatively safe local markets that provide a return on investment years down the road. For those with an interest in quick turnarounds and the potential for huge returns, niche foreign property markets are of prime interest.
One such market is the country of Jordan. Located right next to Israel, Jordan is a small country that is found in a region of the world often associated with political volatility. This tends to drive away foreign investors, but also makes it a prime market for property investment due to the opportunities available.
Jordan: A Study in Emerging Markets
Jordan is classified as an emerging market. There was a sudden rise in GDP during the 1970s, followed by decline and then a period of steady growth in the nineties. The turn of the century saw King Abdullah II take the throne, and this kick-started a change in the economic direction of this tiny country.
Since King Abdullah’s accession, Jordan has developed a thriving banking sector that was able to get through the global financial crisis largely unscathed. Alongside this development, a number of liberal political and economic policies were introduced with the goal of attracting foreign investments from abroad. Thus making it easier for foreigners to buy property in the Jordan property market.
The loosening of a political and economic policies in a country tends to have the following effects:
- Increased foreign investment: In Jordan’s case, the change of economic direction and policy since King Abdullah II took the throne has resulted in an increase in foreign investment. By making it easier for foreigners to own property, the Jordanians have benefitted from an influx of foreign money into the local economy.
- Business: When a local economy thrives, it also increases business opportunities. This not only happens on a community level, as locals open small businesses to take advantage of new money, but also attracts foreign investors to drive the business sector through venture capital projects and business partnerships.
- Construction: A thriving economy also means that the government can funnel money into new building and construction projects. As a result, local employment opportunities increase and the potential for a new middle class is created, along with the retail boom that tends to follow. Infrastructure tends to reap some of the most significant rewards of increased economic activity.
- Tourism: When the local economy is booming and numerous construction projects are changing the city skyline, tourism also tends to increase. A steady flow of visitors also implies a steady flow of revenue for the country in question.
Investing in Property and Growing Foreign Markets
The time is right for investing in the Jordanian property market. As an emerging and vibrant economy, it is well positioned to foster a significant return on investment. For those who are willing to take some risk, Jordan features a very high ceiling of potential. Any investors that wish to increase their international property portfolios should certainly inquire about the Jordan real estate market. As the market heads towards saturation, the opportunities will dwindle, so the time is perfect for investing. Foreign help the Jordanian economy grow and also helps to stimulate local employment opportunities, further insulating your money.