Economic Developments – Baghdad
On Wednesday, Mazhar Mohamed Saleh, the Advisor to the Prime Minister for Financial Affairs, announced a significant shift in Iraq’s real estate investment strategy. The government will now acquire properties directly from investors and offer them to low-income beneficiaries through manageable monthly installments.
Saleh elaborated on this new housing policy, which aims to deliver one million housing units in newly planned urban areas across the nation, while also enhancing urban infrastructures. This comprehensive policy represents a modern approach to addressing the housing crisis, moving away from outdated central urban models.
He emphasized that this revised investment approach will comprise two key elements. Firstly, the state will initially own the properties after their acquisition from investors, ensuring that essential infrastructure is in place before distributing them to beneficiaries in the form of asset ownership. The structure will facilitate very comfortable monthly payments until full ownership is achieved, thereby alleviating financial pressure on new homeowners. Secondly, the government will provide accessible housing loans through the Real Estate Bank and the Housing Fund to support housing development and individual homeownership.
Saleh observed that despite the peaks and subsequent downturns in real estate asset values in recent years, this new housing strategy aligns with the government’s economic program. It is anticipated that property values will normalize, reflecting their true market worth. This expectation corresponds with ongoing efforts to promote both horizontal and vertical housing policies, which had stagnated over the past decades due to conflicts and economic challenges.
With the integration of horizontal and vertical housing initiatives, supported by a foundational basket of construction materials and favorable loan conditions, real estate prices in Iraq are expected to stabilize. This stability will particularly benefit low-income families, as prices gradually decrease across all governorates.
For more news and updates, subscribe to our channel on Telegram
