Proposed amendments to Jordan’s real estate ownership law have sparked widespread public and official debate over how to balance the protection of private property with the government’s ability to implement major infrastructure projects, particularly railway projects.
The proposed changes have also raised concerns over property ownership by non-Jordanians and legal entities, as well as the circumstances under which private property can be expropriated for the public interest.
Why Is Jordan Amending the Real Estate Ownership Law?
Jordan’s Real Estate Ownership Law was first enacted in 2019 to regulate the property market and consolidate rules governing land, buildings and residential units, including sales, mortgages and leases.
According to Minister of State for Legal Affairs Fayyad Al-Qudah, practical experience with the law between 2019 and 2026 revealed several issues requiring legislative amendments.
He said the proposed changes address several areas, including the digitization of property transactions, co-ownership arrangements, compensation for expropriated property, investment in real estate and the implementation of major infrastructure projects.
Parliamentary Debate Over the Proposed Amendments
A joint committee of Jordan’s Senate, comprising the Legal and Economic Committees, approved the bill as it had been passed by the House of Representatives.
However, committee chairman Rajai Al-Maashir criticized the government’s handling of the legislation, arguing that it had not done enough to prepare the public for the proposed changes or conduct the necessary community dialogue.
He said the government had also failed to adequately explain the reasons behind the bill, its objectives, implications and potential consequences.
The committee recommended improving procedures related to co-owned property and strengthening the administrative bodies responsible for implementing the law.
It also called for government-owned land to be given priority when implementing infrastructure projects and urged authorities to avoid expropriating citizens’ land unless absolutely necessary.
In addition, the committee recommended establishing a system for determining fair compensation, with unified valuation standards designed to protect property owners’ rights.
Concerns Over Foreign Ownership
The issue of property ownership by non-Jordanians is among the most controversial aspects of the proposed amendments, particularly regarding land located outside designated urban areas.
Economic analyst and political activist Mohammad Al-Bashir said some of the concerns surrounding the issue were linked to Jordan’s sensitive geographical position and the broader political and security circumstances in the region.
He argued that these concerns may have contributed to public opposition to expanding property ownership rights for non-Jordanians.
At the same time, Al-Bashir stressed that attracting foreign investors should be linked to Jordan’s actual economic needs.
He questioned what types of factories, agricultural projects and other investments the country needs and whether they could help reduce the trade deficit and lower Jordan’s dependence on imports.
Al-Bashir also warned that the fragmentation of citizens’ landholdings in favor of large capital owners could have significant social consequences, particularly for families that depend on agriculture as a source of income.
Government: No Unrestricted Property Ownership
During parliamentary discussions of the bill, Minister of Political and Parliamentary Affairs Abdul Munim Al-Odat said the proposed provision allowing non-Jordanians to own property outside designated urban areas does not constitute unrestricted access to ownership.
He explained that the amendment would allow ownership for private residential purposes, with a maximum area of 10 dunams, while maintaining the other restrictions and conditions established under the existing law.
He emphasized that the purpose of the amendments is to regulate ownership and facilitate investment rather than remove existing safeguards.
Investors Call for Clear Regulations
Majed Ghosheh, head of the Jordan Housing Investors Association, said the association supports carefully designed measures capable of attracting investment and revitalizing the real estate market.
He noted that the housing sector is closely connected to a wide range of economic activities, including construction, building materials, financing, engineering services and employment.
According to Ghosheh, allowing non-Jordanians to own property under clearly defined conditions could encourage investment, but he stressed the need for safeguards to protect agricultural land and curb real estate speculation.
He pointed out that land outside designated urban areas varies considerably depending on its location and potential uses.
Investment Versus Protection of Agricultural Land
MP Dima Tahboub said allowing non-Jordanians to acquire property originally emerged as an investment policy aimed at attracting capital to Jordan.
However, she argued that the policy gradually expanded to include private housing and, under the proposed bill, ownership outside designated urban areas.
Tahboub warned that some land outside urban boundaries could have strategic security, economic or water-related importance, making its transfer to non-Jordians an issue requiring careful consideration.
She argued that residential demand should primarily be directed toward areas already located within designated urban boundaries rather than encouraging the acquisition of land outside them.
What Kind of Foreign Investment Does Jordan Need?
Supporters of the amendments argue that attracting foreign investors could stimulate the real estate market and generate activity across related sectors.
However, investors themselves distinguish between capital that generates genuine economic activity and purchases aimed solely at acquiring land and holding it for future appreciation.
Ghosheh said the most beneficial form of foreign investment is investment that brings new capital into the economy, establishes productive projects and creates jobs rather than simply transferring ownership of land without developing it.
He suggested encouraging non-Jordanians to purchase residential units and projects developed by licensed housing and real estate companies as a way to direct foreign demand toward productive economic activity.
Such an approach, he argued, could stimulate construction, building materials, engineering services and financing instead of allowing investment to become concentrated in land speculation.
Expropriation and Infrastructure Projects
The debate over the proposed amendments is not limited to foreign ownership. Expropriation for the public interest is another major issue under discussion.
The government requires legal mechanisms that allow it to implement large infrastructure projects, including railway developments, which may require routes to pass through privately owned land.
However, expanding the use of expropriation raises questions about the protection of private property and whether property owners will receive fair compensation.
The parliamentary committee therefore recommended giving priority to government-owned land when implementing infrastructure projects and avoiding the expropriation of privately owned property unless absolutely necessary.
It also called for clear and unified standards to determine compensation, ensuring that property owners receive fair payments based on transparent valuation criteria.
The Challenge of Implementation
The controversy surrounding the amendments is not limited to the wording of the legislation. Much will depend on how the new provisions are implemented and which government bodies will be responsible for enforcing them.
Allowing non-Jordanians to acquire property, for example, could attract investment if ownership is linked to productive projects. However, without effective oversight, it could also fuel speculation and contribute to rising land prices.
Similarly, facilitating expropriation could accelerate infrastructure development, but it could also lead to disputes if the criteria for necessity and compensation are unclear.
This makes detailed implementation regulations particularly important. Such regulations would need to ensure transparency, establish clear responsibilities for government agencies and protect property owners’ rights.
Balancing Investment and the National Interest
Jordan faces a delicate balance as it considers amendments to its real estate ownership law. On one side is the need to attract investment and stimulate the property market; on the other is the need to protect private property, agricultural land and broader economic and national interests.
Supporters argue that regulated foreign ownership could attract new investment and strengthen the housing sector, while critics fear that uncontrolled expansion could create social and economic consequences that would be difficult to reverse.
Ultimately, the impact of the amended law will depend largely on the safeguards accompanying it and how effectively they are enforced.
Foreign ownership can contribute to economic growth when it is tied to productive projects, employment and new capital. But it can also place pressure on the property market if it becomes primarily a speculative activity.
Likewise, expropriation for public purposes may be necessary for strategic infrastructure projects, but it requires strong safeguards to ensure that citizens’ property rights are not compromised except where genuinely necessary, and that fair and transparent compensation is provided.
