Sign In / Up

Add contribution as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Comment as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Login

Not a member Register   Forgot Password
or connect using
 

Email

 

Rudaw

Analysis

In Kurdistan Region optimistic landowners bet on post-ISIS investments

By Chris Johannes 13/3/2017
-
-

The real estate market in the Kurdish capital is currently complicated — landowners paid high prices for property when the economy was booming prior to ISIS in 2014, now prices have dropped, but landowners are holding out hope that property values will rise after the threat of ISIS in Iraq continues to be diminished.

 

“If you have cash, and some people have piles of cash, you want to buy,” one real estate developer in Ainkawa told Rudaw English. “The land owners are optimistic that they can get a better price in the future.”

 

“The big foreign investors from places like Europe or the United States see a window of opportunity after Daesh [the Arabic acronym for ISIS) is removed before they anticipate another Daesh coming.”

 

Especially in 2012 and 2013, the Kurdistan Region experienced an economic boom thanks to security, massive oil investment by global energy firms, and the return of people living in diaspora that had been spurned by the Baathist policies of Saddam Hussein.

 

Before ISIS the developer in Ankawa could sell 1 square-meter for $8,000, but now $3,000 is more realistic, even though Ankawa is typically seen as more expensive than parts of Erbil because it’s exclusive to Christians.

 

When ISIS took over large swaths of land in Iraq and were turned back from Erbil by Peshmerga forces in 2014, construction was halted as foreigners deemed the region too risky, so concrete skeletons of buildings litter the capital city.

 

However, the Kurdistan Region remains mostly secure and free of terrorism today thanks to Kurdish security and intelligence supported by their international partners, who have increased biometric security procedures and screen thoroughly.

 

ISIS maintains just pockets of resistance in Iraq, namely in western Mosul, Hawija, north of Baghdad in Salahaddin and Diyala provinces, and in Anbar province near the Syrian border.

 

ISIS has now lost over 60 percent of the territory once held in Iraq and is losing more every day… None of that territory has been retaken by ISIS, according to US officials.

 

So for now, Kurdistan’s real estate market is primed for buyers — that is if a potential buyer has the liquidity and stomach to risk investment.

 

A real estate agent in Erbil said the Setaqan district near Par Hospital is currently listed as the most expensive area in the city at a hefty $6,000 asking price for 1 square-meter.

 

The agent stated in a monthly report that property in Shorish by Maxi Mall is second-highest at around $4,000.

 

The famous food and tea shop district of Eskan has properties available for just more than $3,000, while 30 and 40 Meter Streets are just under $2,000 per square-meter, according to the report.

 

While listed prices tend to be higher than what a buyer would actually pay, the current prices are lower than they were during the economic boom.

 

The longer the Kurdistan Region remains stable, investors become more optimistic and prices in turn would be expected to rise, and foreign countries obviously see value in the region.

 

The United States has committed to building a new $600 million consulate general complex in Erbil.

 

In Kurdistan there are consulate generals from 21 nations, and 14 other various forms of national representations with more opening or planning to open nearly every month. Most recently Japan and Saudi Arabia opened consulates in Erbil.

 

While concerns exist about internal political instability, Kurdistan has successfully defended its territories against ISIS.

 

The next front for Kurds is economics, and the indication of optimism demonstrated by landowners is promising.

Comments

 
Guest | 13/3/2017
Kurdistan will be an economic powerhouse in it's region by 2027. It's ability to demonstrate security, a free market economic system, individual freedoms, and good relationships with it's neighbors in the region, position it to become the most likely choice for investors to create businesses that will produce goods and services for Kurdistan and, more importantly, the surrounding countries. The political struggles in Iraq, Turkey, Syria, and Iran are not conducive to a safe investment environment which leaves Kurdistan as the logical choice. Owning property in Kurdistan is a good investment, especially if Kurdistan can become independent in a way that maintains a good relationship with Iraq.
FAUthman | 14/3/2017
Three key reasons to be very optimistic about the future of Kurdistan/Iraq: 1-US commitment to continued presence in Kurdistan. It is happening. 2-KRG oil exports through Turkey directly to international markets. That is happening too. Once the pipeline capacity and the pumping stations are improved 1 million bpd can easily be reached. 3-Resolution of the disagreements with Baghdad on the location of the border between the Kurdish region and the rest of Iraq. That was the missing link but now it appears this may be happening too and this thorny issue is getting resolved.
Manjinder | 24/3/2017
Hello
1673 Views

Be Part of Your Rudaw!

Share your stories, photos and videos with Rudaw, and quite possibly the world.

What You Say

boris fanclub | 11/23/2017 10:30:04 AM
i will not complain as long uk is bitch slappin iranian mullahs left right center. GOD SAVE THE MIGHTY AWESOME QUEEN.
Kurd supporter for a good while longer | 11/23/2017 12:09:17 PM
Boris Fanclub - the Queen is 91 I don't think anyone is going to save her that long. Seriously though nice to see someone NOT criticising the UK for...
Boris Johnson: 'Serious effort' underway to bring Erbil, Baghdad to table
| 22 hours ago | (6)
Shkak | 11/23/2017 7:22:49 AM
They are still dividing and conspiring in the search of power and greed. They are traitors.
Discussions | 11/23/2017 7:39:44 AM
The two parties are discussing how to distribute among themselves the benefits of their treason of October 16 .
Gorran and PUK discuss 'interim government' in meeting
| 20 hours ago | (3)
IranMan | 11/23/2017 2:41:15 AM
I certainly agree with the commneter above. This pic shows one of Khamenei's rent-a-crowds cheering him on. Instead we should have been looking at a...
Kurdo | 11/23/2017 7:21:23 AM
IranMan why the separist thinking? Joomori eslami e Iran was founded by Israel. They even supported you against Saddam. Mullah Iran is a zionist...
More must be done to aid earthquake victims, says Iran's Supreme Leader
| 20/11/2017 | (4)
Outsider | 11/23/2017 4:59:03 AM
At the end of the day... just speculations... if the peshmerger do not want to talk about them.. my understanding would be they know who this group...
dan | 11/23/2017 5:39:38 AM
What group? you found nothing. You have not one shred of evidence. could be aliens, could be germans, could be anything.. we and you will never know...
Rudaw’s field investigation into unknown armed group which emerged in Tuz Khurmatu
| yesterday at 01:43 | (3)

Elsewhere on Rudaw

Boris Johnson: 'Serious effort' underway to bring Erbil, Baghdad to table 22 hours ago | (6)

Boris Johnson: 'Serious effort' underway to bring Erbil, Baghdad to table

PM Barzani received a letter from UK FM, more
New Yezidi mass grave found in Shingal yesterday at 05:02 | (1)

New Yezidi mass grave found in Shingal

The mass grave contains the bodies of 73 people more
Rudaw’s field investigation into unknown armed group which emerged in Tuz Khurmatu yesterday at 01:43 | (3)

Rudaw’s field investigation into unknown armed group which emerged in Tuz Khurmatu

There are Kurds, Arab, English speaking people more
0.172 seconds