Commercial Real Estate - Iraq | Statista Market Forecast

The Commercial Real Estate market market in Iraq is expected to reach a projected value of US$242.60bn by 2024.
It is anticipated that this market will experience a steady annual growth rate (CAGR 2024-2029) of 0.54%, leading to a market volume of US$249.20bn by 2029.
When compared globally, the United States is expected to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
Despite political instability, Iraq's commercial real estate market is experiencing an upswing due to increased foreign investment in key sectors.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Iraq is experiencing significant growth and development due to a combination of factors.

Customer preferences: Customers in the Commercial Real Estate market in Iraq are increasingly looking for modern and well-equipped office spaces, retail outlets, and industrial facilities. They value locations that are easily accessible, have ample parking space, and offer a range of amenities such as shopping centers, restaurants, and recreational facilities. Additionally, there is a growing demand for mixed-use developments that combine residential, commercial, and recreational spaces in one location.

Trends in the market: One of the key trends in the Commercial Real Estate market in Iraq is the construction of new commercial buildings and infrastructure projects. This is driven by the need to accommodate the growing number of businesses and investors in the country. In recent years, there has been an increase in the number of office buildings, shopping malls, and industrial parks being developed to meet this demand. Another trend in the market is the rise of co-working spaces and flexible office solutions. This is in response to the changing work patterns and preferences of businesses and professionals. Co-working spaces provide a cost-effective and flexible alternative to traditional office spaces, allowing businesses to scale up or down as needed.

Local special circumstances: The Commercial Real Estate market in Iraq is also influenced by the country's unique political and security situation. Despite ongoing challenges, Iraq has made significant progress in stabilizing its economy and attracting foreign investments. The government has implemented reforms to improve the business environment and has taken steps to enhance security and stability. These efforts have boosted investor confidence and have contributed to the growth of the Commercial Real Estate market.

Underlying macroeconomic factors: The growth of the Commercial Real Estate market in Iraq is supported by several macroeconomic factors. The country has a young and growing population, which is driving demand for housing, retail, and entertainment spaces. Additionally, Iraq is rich in natural resources, particularly oil, which has led to increased economic activity and investment in the country. The government's focus on diversifying the economy and reducing dependence on oil has also created opportunities for the development of commercial real estate projects. In conclusion, the Commercial Real Estate market in Iraq is experiencing growth and development due to customer preferences for modern and well-equipped spaces, the construction of new commercial buildings and infrastructure projects, the rise of co-working spaces, the country's unique political and security situation, and underlying macroeconomic factors such as a young and growing population and abundant natural resources. These factors are driving the demand for commercial real estate and creating opportunities for investors and developers in Iraq.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.