What is the building coefficient (nisbat al-bina') and how does it affect land value?

Answer

The building coefficient (nisbat al-bina') defines the total permissible built area as a multiple of plot area. A 500 sqm plot with a coefficient of 4 allows 2,000 sqm of total built area (typically spread across multiple floors). Higher coefficients mean more developable space per sqm of land — which is why commercial plots in prime areas command premium prices. Residential coefficients in West Amman typically range from 2.5x to 4.5x, while commercial can reach 6x to 8x. The coefficient is set by the municipality's zoning plan and can change over time.

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