Publication:
Jordan Housing Sector Review

Loading...
Thumbnail Image
Files in English
English PDF (3.34 MB)
490 downloads
English Text (212.04 KB)
106 downloads
Published
2018-05
ISSN
Date
2019-05-06
Editor(s)
Abstract
This report aims to support the Government of Jordan (GoJ) in improving housing sector performance. In 2016, the Hashemite Kingdom of Jordan requested the World Bank’s technical support to develop a housing sector review to update the Housing Strategy adopted in 1989. Given the enormous challenges currently facing the housing sector, the preparation of this housing sector review and its related recommendations is both timely and important to position the sector to respond effectively to a much-changed situation. The objective of the Jordan Housing Sector Review is to inform the development of a better functioning and more coordinated housing system in Jordan, which caters to the needs of the different segments of the population. This report tackles these and other challenges and questions by taking a comprehensive look at the housing market and conditions in Jordan. It looks at the country context, identifying the role of housing in the economy today and the sector’s contribution to Gross Domestic Product (GDP) and employment. It also takes a close look at previous housing strategies and housing programs, analyzing the current institutional framework and housing ecosystem. Also, analytical work has been undertaken to review the market response to the crisis in terms of housing production, as well as impacts on vacancies, tenure, the housing deficit and affordability of ownership and rental markets. The report looks into the current demand by size and location, and future demand by projecting household formation over the next two decades including consideration of possible refugee flows. A housing supply value chain along with a commercial finance for housing supply and demand analysis is part and parcel of this report. The report includes a set of recommendations crafted to each of the findings presented along the report, aiming to support the government to make inform decisions and to develop the aspired new housing strategy. Conscious of the current fiscal constraints of the GoJ, the recommendations have been prioritized to those that do not increase government expenditures or reduce government revenues in the short term. This report has been led by the Minister of Public Works and Housing (MPWH) in collaboration with the Housing and Urban Development Corporation (HUDC) and the World Bank. Talal Abu Ghazaleh (TAG-Consulting) consulting firm was hired by the GoJ to contribute with technical papers on the different topics covered and presented in this report.
Link to Data Set
Citation
World Bank Group. 2018. Jordan Housing Sector Review. © World Bank. http://hdl.handle.net/10986/31622 License: CC BY 3.0 IGO.
Digital Object Identifier
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Stocktaking of the Housing Sector in Sub-Saharan Africa
    (World Bank, Washington, DC, 2015) World Bank Group
    Africa is rapidly urbanizing and will lead the world’s urban growth in the coming decades. Currently, Africa is the least‐urbanized continent, accommodating 11.3 percent of the world’s urban population, and the Sub‐Saharan region is the continent’s least‐urbanized area. However, the region’s cities are expanding rapidly, by 2050; Africa’s urban population is projected to reach 1.2 billion, with an urbanization rate of 58 percent (UN‐HABITAT 2014). With this rate of growth, Africa will overtake Asia as the world’s most rapidly urbanizing region by 2025 (UN 2014). Although the nature and pace of urbanization varies among countries, with over a quarter of the world’s fastest growing cities, Africa is undergoing a massive urban transition. Globally, cities are major drivers of economic growth, and the quality and location of housing has long-term consequences for inclusive growth. However, in Sub-Saharan Africa, urbanization is not accompanied by the level of per-capita economic growth or housing investment that is observed elsewhere in global trends. Incomes in Sub‐Saharan Africa (SSA) have not kept pace with urbanization, which, in many African countries, has not necessarily been accompanied by industrial growth and the structural transformation as has occurred in other regions. Housing stocks, along with investment and employment in related construction and finance industries, constitute a major component of national economic wealth. The key challenge for African cities, however, has been the comparatively low growth in per‐capita income, which limits the resources that households have to consume or invest in housing. At the same time across the region, the formal channels through which quality housing is produced and financed face major constraints that limit access to a large share of urban households. Hence, the formal housing sector is only a small part of the economy because the construction and finance services have very little effective demand, evidenced by the lack of formal investment in housing across the region. Recent studies have found that in Africa, formal housing investment (in national current accounts data) lags behind urbanization by nine years (Dasgupta et al. 2014). Furthermore, the capital investment in infrastructure needed to handle rapid urbanization typically happens (if at all) after housing has already been built, often in informal settlements.
  • Publication
    Egypt - Next Step Recommendations for Affordable Housing Policy and the National Housing Program : Mortgaged-Linked Subsidies and Housing Supply considerations
    (Washington, DC, 2008-06) World Bank
    At the request of the Government of Egypt (GOE), the objective of this brief note is to provide concise recommendations on next steps for the National Housing Program (NHP). These recommendations and policy analysis are an elaboration of the framework for housing policy reform in urban areas in Egypt, a draft of which was endorsed by the Ministry of Housing, Utilities and Urban Development (MHUUD) and the Ministry of Investment (MOI) in the high-level policy workshop held in September 2007. The Framework, an evolving strategy building blocks document, proposed a set of comprehensive housing sector reforms and improvements to the NHP consisting of five action channels - unlocking the vacant housing stock, creating a fluid rental market, enhancing affordability through improved access to housing finance and reduction of formal housing supply cost, improved targeting of subsidies, and transforming the government's role into an enabler of the housing market. During the Ministerial workshop in September 2007, it was agreed that the four priority actions were: (i) the design and implementation of a housing information system; (ii) mainstreaming the use of demand-based mortgage-linked subsidy instruments; (iii) set up of a high-level housing policymaking body to coordinate and rationalize the interventions of the different concerned stakeholders; and (iv) expansion of the Housing Demand Study to other areas of Egypt. United States Agency for International Development or USAID Second Technical Assistance for Policy Reform, or TAPRII has completed the design of the housing information system and has made significant progress in the expansion of the housing demand survey. The World Bank's technical assistance to the GOE, reflected in this note and follow up work, focused on strengthening the housing policymaking process and subsidy policy and expanding the mortgage linked subsidy program.
  • Publication
    Vietnam Affordable Housing
    (World Bank, Washington, DC, 2015-10-16) World Bank Group
    Affordable housing will be instrumental to helping Vietnam achieve its goals for increasing productivity and inclusive urban growth. Since Doi Moi, the country has experienced impressive economic growth, averaged at 7.4 percent per annum from 1990 to 2008, lowering to an average of 6 percent per annum from 2007 to 2013. Strong economic growth has supported a substantial reduction in poverty, from 58 percent in 1993 to 17 percent in 20121. Yet, the country has remained largely rural, with more than half of its population working in the agricultural sector, which only contributed 17 percent of GDP in 20142. In some countries, urbanization has been used as a tool to accelerate economic growth and poverty reduction. As Vietnam aims to maintain a high growth rate, supporting urbanization, where cities contribute a growing share of jobs and GDP, will be an important measure. This structural shift will drive population growth and new demand for housing in cities, for which quality and affordable housing options in well-serviced and connected settlements will be needed. Areas of particular importance in the Law is support toward self-built housing, the active participation of the private sector, addressing the shortage of affordable rental housing as well as high demand for housing from low income groups, especially workers in industrial zones of large cities. This report, which includes a comprehensive assessment and roadmap for affordable housing in Vietnam, recommends the following key messages moving forward: increase investment, Prepare Three Flagship Initiatives under an umbrella National Affordable Housing Program, Institutional Strengthening, Land Tax Reform, and Create an Enabling Environment for Affordable Housing. Moving forward, design of the market-oriented measures described above will require intensive and careful consultation and engagement with all housing sector actors, particularly the private sector. Private sector will need to play an active role in the early preparation to ensure their participation and commitment that carries through to implementation of policy measures on the financing and supply side.
  • Publication
    An Assessment of Housing for Low-income Groups in Danang : Phase II Report
    (Washington, DC, 2007-02) World Bank
    In August 2004, in response to a request from the Government of Vietnam (GOV), the WB/ IDA launched preparatory activities for the Priority Infrastructure Investment Project (PIIP) in Danang. The PIIP is a multi-sectoral infrastructure investment initiative aimed at poverty reduction and the promotion of economic growth. The Project reflects the national goals set out in the Comprehensive Poverty Reduction and Growth Strategy (CPRGS), and is in line with the overall development priorities of the City's Five-Year (2006-200) Socio-Economic Development Plan (SEDP). The (PIIP) Project objectives are to: i) improve the living conditions and productivity of low income residents through better access to basic services; ii) promote economic growth through strategic investments that enhance mobility and increase private sector participation in the City's economic development; and iii) improve city and district level management through institutional and human resource development and capacity building. During the course of (PIIP) Project preparation activities, the Government expressed a desire to include a further sub-component to support the provision of housing for poor households not affected by the Project. This provided the rationale for the Assessment of Housing for Low Income Groups in Danang, (hereinafter referred to as the Low Income Housing Assessment Study (LIHAS)), which will parallel, support and inform preparation of the PIIP Project, while not being an integral part of it. The Study will take account of Government housing policy as it affects low-income households (LIH) in Danang. In this regard there has been a move away from direct Government involvement in house construction for the public sector service which was found to be financially unsustainable. The scope of work is based on two phases with the second phase consisting of options and recommendations: this second stage report contains: i) determination of the effective demand for low-income housing; ii) description of alternative technical standards for low income housing in the city; iii) overview of the need for financing of low income households, the demand for finance and different models of low income household finance; iv) definition of an outline low income housing policy for Danang City v) models of low-income housing production with varying degrees of public and private participation; vi) suggestions relating to the institutional framework for public housing provision and management.
  • Publication
    Urban Land and Housing Markets in the Punjab, Pakistan
    (Washington, DC, 2006-06) World Bank
    This note provides a short overview of urban land and housing market performance in Punjab Province of Pakistan. It describes the characteristics of well-functioning urban land and housing markets and argues that, at present, the Punjab's urban land and housing markets are not performing well. The paper identifies a range of structural and institutional shortcomings that impede urban land market performance, and then concludes by offering recommendations for making land and housing markets functions better. The Punjab Province in Pakistan is in the midst of a profound urban transition, driven by structural economic change. The Punjab is transforming from an agriculturally-based economy to a manufacturing and service based economy, which is leading to massive urbanization. This background paper reviews and assesses how well the Punjab's urban land and housing markets are functioning. The evidence suggests that urban land and housing markets are not performing as well as they could. Urban land-use planning and development controls are impeding urban development, while land titling and registration systems hamper real estate development. Systems of local resource mobilization and taxation do not generate sufficient revenues to fund key urban infrastructure. The paper notes the several critical negative consequences of poor urban land market performance, namely high land and housing prices, large and expanding katchi abadi developments, poorly located industrial estates, inadequate urban infrastructure, and constrained commercial development.

Users also downloaded

Showing related downloaded files

  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.
  • Publication
    Increasing Female Labor Force Participation
    (World Bank, Washington, DC, 2023-01) Halim, Daniel; O’Sullivan, Michael B.; Sahay, Abhilasha
    Gender gaps in labor force participation persist worldwide. Closing this gap can lead to sizeable gains for economies—a 20 percent increase in GDP per capita, on average. Female labor force participation (FLFP) remains low due to lack of skills, assets and networks, time-based constraints, limited mobility, gender discrimination in hiring and promotion, and restrictive gender norms. Effective evidence-backed policy options can increase FLFP. They include providing childcare services, disseminating information on work opportunities and returns to employment, training in socio-emotional skills, addressing norms by engaging partners and family members, and targeting women via social protection, safety net, and public-works programs. The World Bank Group actively supports countries in boosting FLFP through development policy lending, advisory and analytical work, and supporting reforms to address constraining contextual factors, including legal barriers, social norms, and gender-based violence. This note sheds light on an array of policy options that are effective or show promise in improving FLFP.
  • Publication
    Wealth Sharing for Conflict Prevention and Economic Growth : Botswana Case Study of Natural Resource Utilization for Peace and Development
    (World Bank, Washington, DC, 2011-12) Sebudubudu, David
    There are countries in Asia, Europe, the Middle East and even a few such countries in Africa that are using non-renewable resources to drive development and have not experienced conflict. South Africa, Namibia, Botswana, and Zambia are such typical cases in Africa. Instead, the presence of significant minerals in Botswana is associated with economic development and democracy as well as peace. This paper applies the "resource curse", thesis to the case of Botswana, a country that is rich in minerals, yet it has realized positive development thus avoiding conflict and 'the resource curse'. The focus of this study is to examine the experience of Botswana in using natural resources to promote equitable development and thereby avoid conflict which often results from selfish private or ethnic group interests that elsewhere have used natural resources to the exclusion of other groups in society. This study specifically looks at the conditions and factors that facilitated the absence of internal conflict in the extraction of natural resources in Botswana. The key questions answered are: what contextual conditions and factors facilitated the peaceful extraction of natural resources in Botswana?; and were these factors unique to Botswana or can they be replicated elsewhere?. The first chapter gives introduction. The second chapter deals with the socio-political setting of the chiefs' rule during the pre-colonial and colonial periods. The third chapter discusses Botswana's democracy and how it has evolved not only to democratize society but also to become a management culture of good governance for defining how the natural resources will be utilized for the country's development. Chapter four outlines the mineral resource base of Botswana and the policies and strategies used by government in ensuring that such resources were used for public good rather than the self-interest of either the leaders or mining houses. Chapter five focuses attention on cases of local conflicts relating to mineral and other natural resources around different parts of the country. Chapter six brings the issues together to explain Botswana's democratic and mineral dividends in attaining a high development success rate. Chapter seven presents conclusion.
  • Publication
    The Gambia
    (World Bank, Washington, DC, 2019-02) Mungai, Rose; Amouzou Agbe, Guy Morel Kossivi
    Agriculture is a vital sector in the Gambia. It accounts for about 17.8 percent of gross domestic product (GDP), ranking behind the services sector, which recorded 68.8 percent of GDP. Employment in agriculture appears to be mainly driven by women, who are more likely to engage than men. In general, more than two-thirds of Gambians reside in rural areas and derive their livelihoods from agriculture and related activities. Therefore, the sector is a prime area for investment to achieve poverty reduction as stated in the country’s vision 2020 document. Agriculture is an important source of income for households, behind wages and salaries and petty trading. The agriculture sector plays an important role in ending hunger, malnutrition, and extreme poverty. In rural areas, the agriculture sector’s role in poverty reduction and shared prosperity policies is particularly important.
  • Publication
    Business Ready 2024
    (Washington, DC: World Bank, 2024-10-03) World Bank
    Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.