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Image used for illustrative purpose only. Bismaya City was awarded to South Korea’s Hanwha Engineering and Construction in 2012. Photo courtesy: Hanwha E&C website
Iraq is revamping its housing investment strategy, shifting away from traditional real estate models in a bid to expand homeownership and address housing shortages.
Mudher Mohammed Saleh, Financial Advisor to the Prime Minister, told Zawya Projects that this initiative is part of Iraq’s goal to provide one million residential units in newly developed urban areas across the country.
“The policy emphasises the development of new urban centres, moving away from previous practices of constructing housing within existing central urban areas,” he said, adding that the focus will be on developing well-planned communities with modern infrastructure to enhance the quality of life for residents.
The new policy advocates a mix of direct distribution and subsidy-based solutions to provide sustainable and affordable housing to Iraqi citizens.
Saleh explained that direct distribution involves acquisition of completed properties from developers and distributing them to low-income beneficiaries through affordable monthly payment mechanisms.
Additionally, the government plans to offer subsidised housing loans through the Real Estate Bank and the Housing Fund.
“These instruments are intended to support individual home construction and purchases, making housing more accessible to a broader segment of the population,” explained Saleh.
Stabilise prices
The official said he anticipates the new housing policy to stabilise property prices in urban areas.
“By increasing the supply of housing units and offering diverse options, the government aims to align property values with their true market worth, making homeownership more attainable for citizens,” he said.
He added that ultimately, this initiative aims to address long-standing housing shortages exacerbated by decades of conflict and economic instability.
“By combining vertical (apartment complexes) and horizontal housing (single-family houses) solutions with government-subsidised construction materials and financial support, the policy seeks to create sustainable, affordable living environments across the country,” Saleh noted.
(Reporting by Majda Muhsen; Editing by Anoop Menon)
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