Kurdistan housing market expected to grow after stagnant 2018 start
ERBIL, Kurdistan Region – Real estate prices in the Kurdistan Region were lower in the first half of 2018 compared to the year earlier. Political instability over the past year has been blamed for the volatile market – although forecasts suggest there may be a return to growth.
Political events in Kurdistan and Iraq have a big impact on the rise and fall of house prices.
“Now the Kurdistan Region has security but sometimes political parties in Kurdistan have disputes between each other or there is tension between Baghdad and Erbil, which will affect the market,” Salam Faqe Karim, director of Haji Salam Real Estate, told Rudaw.
Real estate prices were high in the first half of 2017, but demand began to fall when the date was set for the Kurdistan Region independence referendum. After the referendum and Iraq’s takeover of the disputed areas in October, “buying and selling stopped dramatically,” according to a statement from Haji Salam Real Estate.
Many foreign companies left Kurdistan.
Iraqi IDPs returning to their homes has also affected Kurdistan’s market prices.
As relations between Erbil and Baghdad improved in 2018, the market has begun to rebound, though it took another hit because of Iraq’s disputed May 12 parliamentary election.
Haji Salam Real Estate forecasts continued growth due to factors like foreign companies returning to the Kurdistan Region, a knock-on effect from breaking ground on the new US consulate complex in Erbil, improving business relations with Mosul, rising oil prices, and steady payment of KRG public sector salaries.
“For the past six to seven months the market was stagnant. There was not much selling and buying of houses. Even the rent prices declined. But now thanks to God the market is good and the rent prices increased,” Mohammad Ali, a PhD in investment economics, told Rudaw.
But not everyone is pleased with the news.
Abu Abdullah, a real estate agency owner, is worried that prices will rise out of control.
“I think it will have a negative impact on real estate agencies because the prices will increase continuously. It might benefit businessmen and those who sell and buy land, but eventually it will make market conditions uncertain and complex,” Abu Abdullah, a real estate agency owner, told Rudaw.
The real estate sector is one of the most profitable business sectors in the world – after oil. Countries use their real estate sector to attract investment and stability to their economies.
Price fluctuation in any market is connected to political conditions. Political stability and social security are two key factors contributing to growth in the real estate business.
Updated 11:51 am
Political events in Kurdistan and Iraq have a big impact on the rise and fall of house prices.
“Now the Kurdistan Region has security but sometimes political parties in Kurdistan have disputes between each other or there is tension between Baghdad and Erbil, which will affect the market,” Salam Faqe Karim, director of Haji Salam Real Estate, told Rudaw.
Real estate prices were high in the first half of 2017, but demand began to fall when the date was set for the Kurdistan Region independence referendum. After the referendum and Iraq’s takeover of the disputed areas in October, “buying and selling stopped dramatically,” according to a statement from Haji Salam Real Estate.
Many foreign companies left Kurdistan.
Iraqi IDPs returning to their homes has also affected Kurdistan’s market prices.
As relations between Erbil and Baghdad improved in 2018, the market has begun to rebound, though it took another hit because of Iraq’s disputed May 12 parliamentary election.
Haji Salam Real Estate forecasts continued growth due to factors like foreign companies returning to the Kurdistan Region, a knock-on effect from breaking ground on the new US consulate complex in Erbil, improving business relations with Mosul, rising oil prices, and steady payment of KRG public sector salaries.
“For the past six to seven months the market was stagnant. There was not much selling and buying of houses. Even the rent prices declined. But now thanks to God the market is good and the rent prices increased,” Mohammad Ali, a PhD in investment economics, told Rudaw.
But not everyone is pleased with the news.
Abu Abdullah, a real estate agency owner, is worried that prices will rise out of control.
“I think it will have a negative impact on real estate agencies because the prices will increase continuously. It might benefit businessmen and those who sell and buy land, but eventually it will make market conditions uncertain and complex,” Abu Abdullah, a real estate agency owner, told Rudaw.
The real estate sector is one of the most profitable business sectors in the world – after oil. Countries use their real estate sector to attract investment and stability to their economies.
Price fluctuation in any market is connected to political conditions. Political stability and social security are two key factors contributing to growth in the real estate business.