Real Estate - Iraq | Statista Market Forecast

In 2024, the Real Estate market market in Iraq is expected to reach a projected value of US$1.12tn.
Among the various segments within this market, Residential Real Estate is anticipated to dominate with a projected market volume of US$881.80bn in the same year.
It is projected that the market will experience a steady annual growth rate of 3.67% from 2024 to 2029 (CAGR 2024-2029), resulting in a market volume of US$1.35tn by 2029.
When comparing the Real Estate market values globally, it is noteworthy that United States is expected to generate the highest value, reaching US$132.0tn in 2024.
This emphasizes the significant role that United States plays in the global Real Estate market market.
Despite ongoing political instability, the real estate market in Iraq is experiencing a surge in demand due to increased foreign investment.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Iraq has been experiencing significant growth and development in recent years.

Customer preferences: Customers in the Iraqi Real Estate market are increasingly looking for modern and well-designed properties that offer a range of amenities and facilities. There is a growing demand for residential properties that provide a comfortable and convenient lifestyle, with features such as spacious living areas, modern kitchens, and well-maintained communal areas. Additionally, customers are also seeking properties that are located in safe and secure neighborhoods, with access to schools, hospitals, and other essential services.

Trends in the market: One of the key trends in the Iraqi Real Estate market is the increasing demand for commercial properties, particularly in major cities such as Baghdad and Erbil. This is driven by the growth of various industries, including retail, hospitality, and healthcare, which are expanding their operations and require suitable spaces for their businesses. As a result, there has been a surge in the construction of commercial complexes and office buildings to cater to this demand. Another trend in the market is the rise of the luxury real estate segment. Wealthy individuals and investors are increasingly looking to invest in high-end properties, such as luxury apartments and villas, as a store of value and a means of diversifying their investment portfolios. This trend is particularly prominent in cities like Basra and Sulaymaniyah, where there is a growing affluent population.

Local special circumstances: The Real Estate market in Iraq is influenced by several local special circumstances. One of the key factors is the ongoing reconstruction efforts in the country, following years of conflict and instability. The government is investing heavily in infrastructure development, including roads, bridges, and public facilities, which is driving the demand for construction and real estate services. This presents significant opportunities for developers and investors in the market. Additionally, Iraq has a young and growing population, with a high percentage of people under the age of 30. This demographic trend is contributing to the demand for housing, as young people are increasingly looking to buy or rent their own homes. The government is also implementing policies to support affordable housing initiatives, which is further fueling the demand in the market.

Underlying macroeconomic factors: Several macroeconomic factors are driving the development of the Real Estate market in Iraq. The country has a strong and diversified economy, with sectors such as oil and gas, agriculture, and manufacturing contributing to its growth. This has resulted in an increase in disposable income and purchasing power, which is driving the demand for real estate. Furthermore, Iraq has a favorable investment climate, with the government implementing reforms to attract foreign direct investment. This has led to an influx of international investors in the Real Estate market, who are bringing in expertise and capital to support the development of the sector. In conclusion, the Real Estate market in Iraq is experiencing significant growth and development, driven by customer preferences for modern and well-designed properties, as well as the demand for commercial and luxury real estate. The local special circumstances, such as the ongoing reconstruction efforts and the young population, are further contributing to the market's growth. Additionally, the underlying macroeconomic factors, including a strong and diversified economy and a favorable investment climate, are supporting the development of the sector.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. 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 particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

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.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Iraq

Value

Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Real estate in Japan - statistics & facts

Explore more high-quality data on related topic

Real estate in the Asia-Pacific region - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Contact

Get in touch with us. We are happy to help.

Real Estate - Iraq

In-Scope

Out-Of-Scope

Related markets:

Commercial Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Real estate in Japan - statistics & facts

Explore more high-quality data on related topic

Real estate in the Asia-Pacific region - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts