Amman, March 12 (Petra) -- Leading economic analysts have commended the Jordanian Cabinet's strategic decision to implement a subsidized residential land program, forecasting significant multiplier effects throughout the construction value chain via heightened infrastructure project demand and greenfield residential development.

Industry stakeholders, speaking to Jordan News Agency (Petra), underscored that the initiative represents a substantial capital injection into the real estate sector while demonstrating the administration's infrastructure development commitment.

They highlighted the program's alignment with the kingdom's economic modernization roadmap and its potential to enhance quality-of-life metrics for Jordanian nationals.

"This policy intervention will generate substantial downstream benefits across the contracting ecosystem," stated Fouad Al-Dweiri, Chairman of the Jordanian Contractors Association.

"The phased land allocation program will catalyze demand for EPC (engineering, procurement, and construction) firms specializing in core infrastructure development, encompassing transportation networks, utility distribution systems, and ancillary public facilities."

Al-Dweiri emphasized the initiative's cross-sectoral economic linkages, noting that residential land development necessitates complementary housing construction, subsequently driving demand for construction inputs including structural steel, cement, and auxiliary building materials.

"The initiative serves as a powerful fiscal stimulus for the broader construction sector, enhancing market sentiment and potentially attracting incremental capital deployment in both construction and contracting verticals, creating a diversified opportunity set for domestic and international capital providers," he elaborated.

Employment Generation and Infrastructure Capacity Enhancement
The anticipated surge in residential construction activity will create substantial human capital requirements across the contracting sector, generating positions for civil engineers, skilled technical personnel, and project supervisors, thereby strengthening Jordan's labor market fundamentals, according to industry experts.

Al-Dweiri characterized infrastructure development policy as the cornerstone of the contracting sector's growth trajectory, enhancing the kingdom's infrastructure capacity utilization and creating an enabling environment for project deployment across residential, commercial, and industrial asset classes.

He lauded the administration's public-private partnership initiatives that facilitate joint venture project structures designed to enhance service delivery and infrastructure quality across multiple geographic jurisdictions, thereby accelerating growth in the contracting sector and expanding market access for domestic construction firms to participate in large-scale capital projects.

"The administration's strategic support for the contracting sector generates multidimensional economic benefits, including GDP expansion, enhanced fiscal revenue, and accelerated consumer expenditure through value chain multiplier effects across building materials manufacturing, logistics services, architectural design, and engineering consultancy," he noted.

Capital Market Implications
Majid Ghousheh, President of the Jordan Housing Developers Association, confirmed the organization's operational readiness to provide comprehensive support for sustainable development initiatives and strategic infrastructure asset deployment throughout the kingdom.

"This program will substantially enhance the kingdom's infrastructure capacity, optimize the investment climate, reduce end-user acquisition costs, and mitigate urban density challenges," Ghousheh asserted, highlighting that these initiatives create diversified opportunity sets for private sector participation across infrastructure, residential development, and commercial real estate sectors.

Through structured public-private collaboration frameworks, which will generate substantial market opportunities in construction, engineering, operations, and maintenance verticals, the development program will create differentiated real estate investment products across residential, commercial, and mixed-use asset classes, enhancing economic activity throughout Jordan's property markets and strengthening the kingdom's resilience against future urbanization challenges.

Implementation Framework
The Housing and Urban Development Corporation confirmed that the Cabinet's decision will facilitate new urban cluster development, service delivery enhancement, infrastructure capacity expansion, and the provision of accessible housing solutions for the majority of Jordanian nationals.

The corporation outlined a phased implementation strategy, with initial deployment targeting the Batrawi district in Zarqa Governorate, the Muhi and Qatraneh localities in Karak, and the Muhammadiyah zone in Ma'an.

Land allocation and disposition will commence following infrastructure deployment and essential utility connection, with phase one completion anticipated by Q4 2025, followed by programmatic expansion to additional strategic locations throughout the kingdom.

The initiative incorporates concessional financing structures for eligible participants, including payment facilitation at 50 percent of the administrative land valuation per dunum, with direct amortization to the corporation over a 10-year tenor, zero interest rate, and no initial capital requirement.

Beneficiaries will receive regulatory approvals for utility connections after initial installment remittance, with title transfer guaranteed upon complete payment satisfaction.

//Petra// AA

12/03/2025 10:46:17