KRG move to provide services for private housing developments draws criticism
ERBIL, Kurdistan Region - A decision taken by the Kurdistan Regional Government to assume responsibility for the provision of services to private housing developments has worried real estate agents and property investors.
The move has concerned some investors and real estate agents, claiming that it will negatively impact the quality of services.
The KRG assigned relevant authorities in November to implement the decision by June 2020. It also decided in the same month to prevent investors from charging service fees from owners of residential units. The latter decision took effect immediately.
Miran Safin is the head of a real estate agency in Erbil. He told Rudaw that the decision to hand the task service provision to government authorities will harm the housing market and quality of services.
“It is a normal and good thing to revise the prices of the services but if the government supervises it there will be a lack of organization,” he said.
Services such as security, water and electricity are currently provided by the owners of the housing developments, the cost of which varies from one place to another.
“There are many [residential] projects inhabited by people, especially foreigners, due to good quality of security, water and electricity as well as cleanness and management,” added Safin.
The decision has also worried private investors.
“We welcome the government's decision but I think if we think about it deeply we will see that it will have a [bad] impact on investment, apartments and future projects,” investor Haji Choli Mohammed told Rudaw.
He said the privatization of services is commonplace in other countries , wondering why the KRG does not allow it.
However, KRG officials have defended the move, saying it will “reduce the burden” of people living in the developments.
Mohammed Shuki, head of the KRG’s investment directorate, told Rudaw that the decision “will be implemented and it is aimed at reducing the burden of the inhabitants of these residential cities.”
There are about 165,000 residential units in 177 developments across the Kurdistan Region, according to figures from the directorate.
Reporting by Payam Sarbast