26-05-2025
Can new Iraqi cities solve Baghdad's housing crisis?
Baghdad ( – For countless residents of Baghdad and across Iraq, the dream of owning a home has long been overshadowed by the burdensome reality of renting. A persistent housing crisis, fueled by years of instability and a growing population, has made property ownership a distant goal for many. In response, the Iraqi government has launched a series of ambitious new city projects, prompting a crucial question: Will these new developments finally end the rent dream for the average citizen?
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.
