The value of property deals in Jordan rose 31% to 3.8bn Dinars (£3.3bn) in the first seven months of this year on strong demand for apartments in the capital, official data showed.

The number of foreign property investors buying property in Jordan jumped 41% in the first seven months of the year to 250m Dinars, compared with the same period last year, the data from the department of land surveying reported.

Iraqis bought 154m Dinars worth of property, topping the list of non-Jordanian investors, followed by Saudis, who purchased eight times less than Iraqis.

Strong demand also came from Palestinians, expatriate Jordanians and even Lebanese seeking a safe haven in a country that has a record of political stability.

Local property experts also expect the residential market to show signs of further growth in heavily populated urban areas driven by demographic factors, but oversupply will continue to depress the capital’s commercial sector for the next year at least, worsened by a sluggish economy.

Prices for prime real estate in the capital Amman, including apartments, have risen by at least 20% in the last 18 months and should pick up by around 10% by the end of 2011, analysts said.