Can new Iraqi cities solve Baghdad's housing crisis?
The government's strategy is ambitious. The Ministry of Construction and Housing recently opened sales centers for the new Al-Jawahiri and Ali Al-Wardi cities, which collectively promise to offer 150,000 housing units and 10,000 serviced land plots in the Abu Ghraib and Nahrawan districts. Another major initiative, the new Al-Sadr City project, aims to provide an additional 90,000 housing units. These projects signal a massive state-led effort to increase housing supply.
However, the question of affordability remains at the heart of the debate. For instance, serviced land plots in the new cities are priced at 900,000 IQD per meter. For constructed units, the financial commitment is substantial. According to Ministry spokesperson Istabraq Sabah, a horizontal unit can require a 30 million IQD down payment, with the total price reaching up to 200 million IQD on an installment plan.
This pricing structure has drawn criticism. Economic expert Nabil Al-Marsoumi argues that the prices in these new suburban complexes are double what was expected and nearly match real estate prices within Baghdad itself, despite being on the city's outskirts. He suggests a lack of meaningful government support for citizens within these payment schemes, questioning their accessibility for middle and low-income families.
The government has stated that a portion of these projects will target specific demographics. For example, 10,000 serviced land plots are set to be distributed through a competitive process among 21 categories of citizens, including families of martyrs, the wounded, widows, and those with special needs. Similarly, the new Al-Sadr City project allocates 11,000 units for residents of informal settlements at a subsidized and almost free price.
While these social allocations are vital, they represent a fraction of the total units being built. The challenge remains whether the broader pricing models for the majority of these new homes are truly attainable for the citizens currently trapped in a cycle of renting. The government's large-scale developments offer a glimmer of hope, but their success in resolving the housing crisis will ultimately depend on their true affordability and whether they can bridge the gap between market prices and the financial reality of the average Iraqi family.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
an hour ago
- Shafaq News
Illegal water use chokes Iraq's Diyala river flows
Shafaq News – Diyala Iraq's Diyala Provincial Council reported on Tuesday that the illegal use of water resources and river routes has reached critical levels, prompting a series of measures to address the violations. In a press briefing, Omar Al-Karawi, Chairman of the Council, highlighted 301 unofficial fish ponds and more than 40 unauthorized irrigation reservoirs. He noted that authorities have already referred 139 violators to the judiciary, further stressing the need to negotiate with the Kurdistan Region and Iran to increase the dams' water quota, ensuring more consistent and sufficient flows to the province. Fares Mazahim Al-Jubouri, Deputy Head of the Council's Security Committee, pointed out that influential individuals are creating fish ponds while exerting pressure on officials, including the deputy governor and department heads. Confirming that four to five additional fish ponds and wells were being established even during this press conference, he warned that the crisis is worsening across the province and its villages, with negative effects on agriculture and local communities. Meanwhile, Raaed Al-Tamimi, head of the council's Agriculture Committee, reported that water releases from Darbandikhan Dam to Hamrin Dam total 50 cubic meters per second, but only eight cubic meters per second reach Diyala due to illegal fish ponds and diversions. He also added that outsiders have dug ponds on 4,000 hectares across four districts, obstructing river routes and water flows beyond the province's boundaries. Iraq faces a severe water crisis driven by years of upstream damming, reduced rainfall, and aging infrastructure, which have led to dwindling river flows. The Iraqi Ministry of Water Resources reports that the country's water availability has fallen below 1,000 cubic meters per capita annually, placing Iraq among water- scarce
Shafaq News
an hour ago
- Shafaq News
Iraq's gold reserves rise 4.7% in H1 2025
Shafaq News – Baghdad Iraq's gold reserves increased in value by 4.76% during the first half of 2025, driven by higher global gold prices, the economic observatory ECO Iraq reported on Tuesday. Iraq currently holds 162 tons of gold as part of its national reserves. The value of one ton rose from $105M in January 2025 to $110M by the end of June, directly boosting the total value of the country's gold holdings. The observatory noted that the recent rise in global gold prices reflects broader market volatility and has affected reserve valuations across many countries, including Iraq. Regular monitoring of gold prices, it said, allows Iraq to more accurately assess its reserves and take economic measures to safeguard purchasing power. In July, the Central Bank of Iraq confirmed the trend, reporting an increase in the value of gold within Iraq's foreign currency reserves. According to official statistics, the value of gold reached 22.492T IQD in April, up 5.62% from 21.228T in March. The figure also marked a 17.72% rise from December 2024, when gold stood at 17.834T IQD, and a sharp increase compared with December 2023, when reserves were valued at 12.293T.
Iraqi News
3 hours ago
- Iraqi News
The President: Everyone is committed to holding elections with transparency and integrity
President of the Republic, Abdul Latif Rashid, affirmed on Tuesday that Iraq is about to embark on an electoral experience that represents a fundamental milestone in consolidating the principle of the peaceful transfer of power. Rashid received several ambassadors and heads of missions of Arab and Islamic countries accredited to Iraq, reviewing the latest developments in the local and international situation, in addition to discussing ways to enhance cooperation and deepen bilateral and regional partnerships, said the Presidency of the Republic in a statement received by the Iraqi News Agency - INA. "Iraq is about to embark on an electoral experience that represents a fundamental milestone in consolidating the principle of the peaceful transfer of power. Everyone is keen to ensure that this process is conducted with the highest levels of transparency and integrity, and that it embodies the free will of the Iraqi people and their aspirations for a better future," the President affirmed. He explained that "Iraq is making steady progress toward recovery, placing security and stability at the heart of its priorities, with a focus on reconstruction and infrastructure development, promoting investment and job creation, and addressing existing challenges to ensure a decent life for citizens and achieve sustainable development that meets the aspirations of future generations." "Iraq is keen to expand its partnerships with the brotherly and friendly countries based on mutual respect and to enhance cooperation in various development fields. Iraq's policy is open and balanced, based on building bridges of dialogue and effective diplomacy, avoiding escalation, across political, economic, and development tracks, thus mitigating the climate of tension, supporting the well-being of people, and enhancing their aspirations for a secure and prosperous future," he emphasized. The President highlighted "the efforts of the Presidency of the Republic on several priority issues and matters, and its submission of several draft laws directly related to the lives of Iraqis to the Parliament for discussion and approval." Regarding Iraq's position on important international issues, particularly the ongoing aggression against Gaza, he explained that "the humanitarian tragedy there calls for a unified Arab and Islamic stance that assumes its responsibilities toward an immediate ceasefire, ensuring the delivery of aid, and protecting civilians." "Iraq's position is steadfast in supporting the Palestinian people's right to self-determination," he added. President Rashid called on the international community to "assume its responsibilities to find a political path that restores rights and ends the suffering of civilians," noting that he "welcomes the ongoing peace process in Turkey and brings an end to the fighting that has been raging there for many years."
