Iraq’s Real Estate Market Is Witnessing a Significant Recession
|August 5, 2014||Filled under Iraqi Economy|
Iraqi Economy –
Economists said that the lack of approval of the federal budget in a timely manner led to a recession in all sectors, including commercial real estate. The owners grumbled Real Estate Offices of bad economic and security situation, which reflected negatively on their jobs due to an almost complete stop to their work since the events of Mosul without any indication of improved business situation in the country.
Said Haji Taha, owner of Ameri of the property in an interview for the “long”, that “real estate prices fell significantly for nearly two months due to the deteriorating security situation and the delay in approving the budget, which is the main nerve of the financial resources of the Iraqi citizen.” According to the newspaper term.
He added that “despite the sudden change of real estate prices, but the market remains stagnant without little movement because of people’s fear of the unknown future where there is not the slightest sense of optimism as a result of what has passed through the country during the previous years, despite the political and economic changes successive.”
Taha said that “most existing offers to people who are thinking of the country to escape to a place that makes them feel safe, and now they have lost already, so the impact on the process of supply and demand, which significantly contributed to the decline in real estate prices to levels never happen.”
He said “most of the properties for sale belong to the families of certain components worked unstable security conditions on the displacement from their areas to the other, or they leave the country because of the fear that who feel.”
He stressed that “real estate in some areas reached their Baghdad over the past years to the astronomical prices are not found in the finest stable countries and the first of London and it was due to an improvement in financial income to individuals and the increasing need for real estate over the past three decades.”
He noted that “expectations for a continued decline in prices gradually, but if he got there a significant improvement of security and economic reality of the country.”
As said Akil Mansour His office for the sale and purchase of the property for the “long”, “The decline in real estate prices significantly as a result of the deteriorating security situation and the cases of assassinations and daily explosions continued all led to a deterioration of movement, the level of sales and purchases and leases in the general areas of Baghdad to zero degrees.”
“The past years have seen the departure of some people to other areas as safe as Karrada Eastern and Mansour, Yarmouk, Harthiya and the other either the affected areas such as the session and Sedea and Ghazaliya Ameria and other the prices of real estate in which, either today, migration has become out of Iraq because of the inclusion of all areas to deteriorate increased security.”
Mansour said that “stop the sale and purchase reflected heavily on our livelihood daily, which is the main source for the exercise of our lives properly, which make us other expenses related to the office in addition to the monthly rent.”
He said the “economic movement paralyzed the country and noted that during the stop of the real estate market and the movement of construction, which includes character professions can have many work and prosperity if they move the market returned to normal.”
In turn, the economic expert Abbas Bahadli “long”, “The security events successive undone his usual Iraqi economy, especially after the control of terrorist groups on the Nineveh province during the past period.” “The real estate market is one of the most important actors in the Iraqi economy, thanks to its liquidity significant financial comparable to neighboring countries, despite the negatives that suffered in previous years, but he kept his balance as a result of supply and demand associated with the need of people to housing units estimated three million units can be increased “.
Bahadli said that “the increase of the display without having a balanced request resulted in a stalemate and my time in the real estate market does not address it to the availability of the data and some of the most important security and currently missing, unfortunately.”
He said the “central government have the upper hand in the process of reviving the Iraqi economy, including holdings of financial and banking laws through which you can pump money by opening various loans to citizens to help them buy new housing units.”
He stressed that “the failure to approve the federal budget so far there have been no precedent in effect on the overall economic activity and urban system of the country because of the Iraqi economy is still largely dependent on the resources of the central government.”
Despite assurances from the Iraqi Prime Minister Nuri al-Maliki and a number of officials in the Iraqi government in more than one occasion to adopt the establishment of residential complexes, but that the policy of the Iraqi state is still dependent on the distribution of land, especially in the outskirts of cities, without the provision of services to them, which made some of the provinces complain of the high number of unserved neighborhoods with water, sewage and other basic services.
The National Investment Authority agreed in 2011, with Korean companies and the U.S. to build 200 thousand units in Baghdad and Basra, out of a million units seeking to implement them for the end of 2014, and opened a body in (25 September 2011), the door of registration on its website on these housing units After that indicated that the priority will be for registration and then retired staff and citizens, but the execution was delayed, and chairman of the investment attributed to the recent negotiations with the Korean company is executing the project.
Iraq suffers from a severe housing crisis due to the increasing population, compared with the number of residential complexes, in addition to the inability of citizens with limited income from the construction of housing units of its own, because of the high cost of land and building materials.
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