Minister: Iraq needs to build 2.5 million homes in 4 years

Minister: Iraq needs to build 2.5 million homes in 4 years



He stressed that his country is facing a housing crisis and need foreign investment

Tuesday - 17 September 2013

Unrest that has gripped Iraq destroyed wealth Alakaray in the country



DUBAI - Reuters Minister of Construction and Housing Iraq Mohammed Darraji that Iraq is facing a housing crisis, as it is expected to be completed the war-torn country, only five percent of the 2.5 million units it to Ichedha by the year 2016 to meet the demand.

Experts predict that up private sector's contribution to the four-fifths of new buildings in Iraq, and that comes the bulk of these investments from abroad, but foreign investors are reluctant to participate due to bureaucratic obstacles and lack of experience government in the management of projects, while a deteriorating security situation is another source of concern.

And potential homeowners facing difficulties to get a reasonable interest rate of mortgage loans from commercial banks, while experiencing mortgage programs backed by the government of a chronic lack of funding relative to demand.

He said Darraji on the sidelines of a conference in Dubai that Iraq needs to build 2.5 million new housing units by the end of 2016, but predicted build 130 thousand units only by that time, including 30 thousand units adopted the government and 100 thousand units built by the private sector.

Darraji added that it is paid to say that there is a crisis will not be resolved without direct investments from foreign investors, pointing out that the problem existed since the 40-year-old will not be resolved within two or three years.

A report from the International Monetary Fund in July that foreign direct investment in Iraq form about one percent of the gross domestic product (GDP) of the country in 2012.

Darraji said, "unless we attract foreign companies will not know when it will end this crisis."

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Minister: Iraq is facing a housing crisis and needs foreign investments
 
HRF-4028-Tuesday 17 September 2013 g 12 Dhu'l-1434
 
 
 
 
Construction and Housing Minister Mohammad Al-Darraji on Monday (16 September) that Iraq is facing a crisis of housing is expected to complete a war-torn country, only five percent of the 2.5 million housing units to built by 2016 to meet demand. Experts predict that private sector contribution to four-fifths of new buildings in Iraq and that the bulk of those investments from abroad. But foreign investors were reluctant to participate because of bureaucratic obstacles and lack of experience in project management and the deteriorating security situation is another concern. In addition, potential homeowners facing difficulties to obtain reasonable interest mortgage loan from commercial banks and mortgage programs supported by the Government chronically underfunded relative to demand. Al-daradji told Reuters on the sidelines of the two-day Conference in Dubai that Iraq needs to build 2.5 million new homes by the end of the year 2016. But it is expected to build 130,000 units by then 30 government-built units and 100,000 units built by the private sector. "The inability of contractors and project size is greater than the capacity of the existing contractors," said Al-daradji "crisis that some regions did not spend more than 25 percent of their budgets because of the lack of contractors," said daraji that it pays to say that the crisis will not be solved without direct investment by foreign investors. The problem for 40 years, will be resolved within two or three years. Report from the International Monetary Fund in July that foreign direct investment in Iraq is about one percent of the country's GDP in 2012. And little does not want foreign companies to work in Iraq because of the bureaucracy over the growing sectarian violence. Al-daradji said "unless we attract foreign companies would know when this crisis will end," said the beauty of Engineering Corporation and contractors based in the UAE and all its projects in Iraq, "we are talking about an integrated work environment. The nature of the work of the many elements which is a section of Iraqi law and banking and the inability of some of the laws and procedures that fit and keep pace with global development, "experts say that reconstruction work in Iraq estimated at ten target rate with the lack of interest of foreign contracting companies typically build low-cost housing because their profits are scarce. Amar said shopper at Emaar in Dubai if you compare figures and plans in the best of cases, the Government can cover 10 to 15 percent of future housing needs, "daraji spoke about the need for more money for water and sewer lines in Iraq. He said that Iraq suffers from poor infrastructure of the former leadership has spent its resources on the army
 
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oh yeah! lots of jobs created in building these units, and hopefuly pay parity with bordering countries!