Iraq is overhauling its housing investment strategy, moving away from traditional real estate models to expand homeownership and tackle the country’s housing shortage.
Mudher Mohammed Saleh, Financial Advisor to the Prime Minister, told Zawya Projects that the initiative aims to provide one million residential units in newly developed urban areas across Iraq.
“The strategy prioritizes the creation of new urban centers rather than building homes within existing city cores,” Saleh explained, emphasizing a shift toward well-planned communities with modern infrastructure to improve residents’ quality of life.
The new policy combines direct housing distribution with subsidy-based solutions to ensure sustainable and affordable homeownership for Iraqi citizens.
Saleh outlined that direct distribution involves acquiring completed housing units from developers and allocating them to low-income beneficiaries through affordable payment plans. Additionally, the government will offer subsidized housing loans through the Real Estate Bank and the Housing Fund.
“These financial tools will facilitate both home construction and purchases, broadening access to housing,” he noted.
Stabilizing Property Prices
Saleh expects the policy to help stabilize urban property prices.
“By increasing housing supply and offering diverse options, the government aims to align property values with actual market rates, making homeownership more achievable for citizens,” he stated.
He added that the initiative directly addresses Iraq’s longstanding housing crisis, which has been aggravated by decades of conflict and economic instability.
“By integrating vertical (apartment complexes) and horizontal housing (single-family homes) with government-subsidized construction materials and financial assistance, the policy seeks to establish sustainable and affordable living environments across the country,” Saleh concluded.
(Source: Zawya Projects)
