Real Estate - Iraq

Iraq

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$0.88tn in the same year.
It is projected that the market will experience a steady annual growth rate of 3.81% 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.

Key regions: United States, China, Japan, Germany, United Kingdom

Market

Region

Region comparison

Currency

Analyst Opinion

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.

Methodology

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.