What is land banking and how does it work in Jordan?

Answer

Land banking is the strategy of acquiring land in advance of development demand, holding it until values appreciate, then selling or developing. In Jordan, this typically involves purchasing plots in outer-city areas (Al Th'hair, Al Bunayyat, Marj Al Hamam) at low prices, then waiting as Greater Amman Municipality infrastructure investment and urban expansion brings those areas into the development zone. Effective land banking requires patience (5–15 year horizons), a clear read on expansion direction, and low annual holding costs. Jordan's minimal annual land tax makes the holding cost equation favorable.

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