Economic Update – Baghdad
On Thursday, the Ministry of Construction announced a proposed price of 900,000 dinars per square meter for new city developments.
Hamid Abdul Hamad, the head of the Ministry of New Cities, stated that a problem-solving committee has been formed that includes key stakeholders, such as reconstruction, planning officials, the Baghdad secretariat, and investment authority heads from both Baghdad and various governorates. This committee is tasked with establishing criteria and standards for housing costs in new city projects.
He elaborated that this committee convened to finalize guidelines determining housing prices for the new city initiatives, alongside additional regulations pertaining to the allocation of housing units.
Hamad emphasized that the committee is considering the need for residential complexes in both Baghdad and its governorates, aiming to alleviate the challenges citizens face when seeking housing. Additionally, they are taking into account the unique requirements of each governorate and the demographics within them.
Hamad mentioned that these established standards will act as a framework to coordinate all housing-related activities.
Furthermore, he indicated that the authority has mandated investment firms involved in the new city projects to ensure the provision of essential infrastructure, including commercial services, schools, hospitals, roads, and transportation systems, thereby ensuring these cities function autonomously.
It was noted that the committee underscored the importance of determining a reasonable profit margin for investors, ensuring it only minimally impacts the final cost of housing units. The ministry has recommended a baseline price of 900,000 dinars per square meter, adjusted based on location and any additional services offered by the investor. This approach aims to cultivate a productive investment environment that attracts business opportunities and residential projects.
Hamad concluded that the pricing and regulatory considerations are still being evaluated, and any proposed changes will be submitted to the General Secretariat of the Council of Ministers for further action.
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