The recession dominates the real estate market in Baghdad

The recession dominates the real estate market in Baghdad


The recession has dominated real estate prices in Baghdad because of the financial crisis that hit the country in 2014 after oil prices fell from $ 120 a barrel to $ 50.

The real estate prices in the capital Baghdad from Rusafa between 500 thousand dinars and the four million dinars, while in the side of Karkh prices between 750 thousand dinars to two million dinars.

The owners of real estate offices and economic experts blamed the government for the recession because it did not provide a clear housing policy and the construction of housing complexes to reduce the housing crisis in the country.

"The real estate market has witnessed an unprecedented recession since 2014 until now because of the lack of financial liquidity, the decline in security conditions and the absence of political stability," said Majid Mohammed, owner of a brokerage office for the sale and purchase of real estate in the bank area northeast of Baghdad. "The prices of land and real estate decreased by 30-50% during the current period."

"The prices of small houses are more expensive than large houses, with a total price of 50 square meters more than 70 million dinars, while the price of a house 200 in the same area 200 million dinars," he said, referring to "the tendency of citizens to buy small houses for lack of funds The large houses, which led to the deduction of small areas of large houses and display for sale in large amounts to achieve more profitable.

For his part, Ammar Ali, owner of one of the brokerage offices for the sale and purchase of real estate in the Karrada district of central Baghdad, told "Economy News" that "the prices of real estate in the center of the capital is high compared to other regions, where the price per meter in the Karrada area more than $ 2000 Prices are falling as they move away from the center of the city. "

He added that "the country is going through a financial crisis led to the government to withhold the salaries of employees and retirees led to the inability of the citizen to buy a piece of residential land or a simple home within the city centers, forcing some to go to areas located on the outskirts of Baghdad."

Ali pointed out that "the government did not develop a clear housing policy through the introduction of investment and the private sector in the field of construction and the establishment of modern housing complexes to accommodate the population which is going to increase during the coming years."

The economic expert Abdul Rahman al-Mashhadani told "Economy News" that "the decline in real estate prices because of the lack of cash in the citizen and the inability to buy a piece of land or home in the areas of Baghdad and low oil prices and the war against Daash cast shadow on the deterioration of the material situation and entering the country with a financial crisis And economic ".

He pointed out that "we need a optimistic view to get out of this crisis and to develop a future plan by the government and institutions in the field of providing services to citizens and the establishment of housing complexes have the basic services to become habitable."

Mashhadani said that "the rise in some real estate prices in areas and decline in other areas because of the lack of culture of mobility among citizens and stay within their areas so that the resident in Rusafa to move to live in Karkh and vice versa."

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