Following in Dubai’s footsteps: Baghdad tops the chart of skyrocketing real estate prices in Iraq
2023-06-18 17:29
Shafaq News / The real estate market in Iraq has witnessed a remarkable increase in the past three years, as indicated by analysts. Baghdad, being the most expensive governorate in Iraq, has experienced rising prices, followed by Karbala, Basra, al-Anbar, and Najaf.
According to experts, the growth in real estate values can be attributed to three factors. Firstly, the presence of secure locations where real estate developments take place contributes to the rise in prices. Secondly, the involvement of capital owners plays a significant role. Finally, the ease of conducting investment procedures has a positive impact.
Experts state that real estate prices decline when the security, political, and economic situations deteriorate.
Hisham al-Dakhil, the owner of an investment firm in Saladin Governorate, has categorized real estate prices in Iraq into three distinct categories: outrageous, acceptable, and cheap. He further elaborated that the highest prices are found in the capital, Baghdad, followed by Karbala, Basra, al-Anbar (especially Fallujah), and then Najaf. These areas are considered safe and attract significant capital owners, which contributes to the elevated property prices.
Al-Dakhil also highlighted that cities with average real estate prices include Wasit, Nineveh, Babel, and Erbil. He pointed out that unlike Baghdad, Saladin, and Nineveh, where investment projects yield millions of dollars in commissions, Erbil’s relatively lower prices are a result of the regional government’s proactive approach toward investment companies. The government’s facilitation of their work has prevented an excessive influx of investors into these particular governorates.
In terms of the most affordable real estate, al-Dakhil noted that prices in the Samarra district, particularly in the neighborhoods of al-Qadisiyah and al-Mu’allimeen, are exceptionally cheap. This is attributed to the deteriorating economic and political situation in the area, coupled with a multitude of security authorities. As a result, many capital owners have departed from these neighborhoods. Al-Muthanna and Maysan governorates follow Samarra in offering affordable real estate prices.
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Furthermore, Mohammed Saleh, owner of a real estate company in Erbil, provided insight into the price range per square meter of apartments in the city. He stated that prices typically range from $650 to $1,500 per square meter. Saleh explained that the variations in prices are influenced by factors such as the level of sophistication and the availability of services in the respective areas.
According to Ahmed Fou’ad Shukri, a businessman and economist, the increase in real estate prices in Iraq can be attributed to several factors. The foremost among these factors is the lack of governmental oversight and determination to regulate the real estate sector. Iraq follows an open market policy where prices are determined by the interplay of supply and demand, both of which are currently on the rise.
Shukri also emphasized the absence of tax laws that hold traders and speculators accountable in the real estate market. Furthermore, the suspension of the Iraqi stock market has prompted many traders and companies to redirect their investments towards the real estate sector exclusively.
Shukri issued a warning, drawing a parallel between the current situation in Iraq and Dubai in 2005-2006 when real estate prices experienced an unprecedented surge. He cautioned that if traders continue to focus on real estate investments, the market could deteriorate, leading to negative consequences similar to those witnessed in Dubai.
Moreover, Shukri mentioned that political money also plays a role in driving up real estate prices, but its impact is limited to certain areas such as al-Mansour, al-Karrada, and al-Jadriyah in Baghdad. In contrast, in the remaining parts of the capital, the price increases are primarily influenced by the aforementioned factors.
The rise in real estate prices in Iraq can be attributed to additional factors, as highlighted by Mahma Khalil, the head of the parliamentary services and reconstruction committee. Khalil identifies the lack of a government program for distributing land to citizens as one of the reasons. This absence of a structured approach to land allocation contributes to the upward trend in real estate prices.
Furthermore, Khalil emphasizes the failure to pass legislation concerning slums, which has further impacted the real estate market. The slums law underwent initial and subsequent readings but was later withdrawn by the government for further revisions and feedback. Once the necessary amendments are completed, the law will be resubmitted to the parliament for enactment. Khalil clarifies that individuals who have settled on land for housing purposes have the right to own the land, as long as they do not encroach upon state-owned properties or public resources.
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In light of these factors, Khalil expresses the committee’s view of granting citizens both a plot of land and a housing loan. This proposal aims to exert control over the rising real estate prices in Iraq.
Source: Shafaq
CBI sells +$274 million in forex on Wednesday
2023-06-21 06:31
Shafaq News/ The Central Bank of Iraq (CBI) auctioned more than $274 million on Wednesday with remittances outweighing cash sales by a huge margin.
According to a correspondent from Shafaq News Agency, the CBI sold a total of $274,989,642 during today’s auction, 8.7% above yesterday’s $252,086,600. The bank covered these sales at a base exchange rate of 1,305 dinars per dollar for documentary credits and international settlements of electronic cards, while the rate stood at 1,310 dinars per dollar for foreign transfers and cash transactions.
Our correspondent explained that the majority of the sales were directed towards bolstering foreign balances in the form of transfers and credits, amounting to $210,210,624. The remaining $64,770,000 were allocated for cash deals.
Cash deals were made by 12 banks, while 23 banks met the requests relevant to foreign balances. A total of 110 exchange and brokerage companies took part in the auction.
Source: Shafaq
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