Rising real estate prices in Iraq encourages buying abroad


Iraqis occupy the top place in real estate ownership in Turkey and Azerbaijan, according to data recently released by official bodies. According to information released by the Turkish Statistics Agency, the number of houses bought by foreigners in Turkey until the end of 2017 reached 81,754 houses, an average of 50 properties per day, an increase of 18.6 percent compared to the same period last year.
The Iraqis are now on the list, with the Saudis and Kuwaitis being second and third respectively. The number of homes purchased by Iraqis in Turkey in one year, to 8 thousand and 909 properties, while the Saudis bought 6 thousand and 107 homes, Kuwaitis 4 thousand and 672 housing units.
The Iraqi expert specialized in the field of real estate investment abroad, Alaa Salhi, that “the volume of Iraqi demand to buy property abroad, subject to one important condition is to link this investment by granting them the right of residence or nationality. He pointed out that «many Iraqi families faced difficulties when they decided to sell their property in Baghdad and immigration to neighboring countries. Some have lost their savings as a result of waiting for immigration approval, which could last for years. ” Therefore, he saw that the amendment of the laws in some countries and granting investors the right to residence, «an important opportunity to achieve the dreams of migration».
“Real estate prices in Iraqi cities have recorded an unreal increase since 2008, especially with a shortage of housing supply estimated at 4 million units, in addition to the accumulation of funds illegally by some of them, which contributed to reach this situation. He pointed out that «prices have exceeded in areas such as Kadhimiya, Baghdad, Basra and Najaf, the prices of real estate in cities known for high prices such as London, New York and Dubai».
“The high prices have resulted in stagnation in the sector, especially as it turns into unrealistic rents. It is discouraging to buy a property worth $ 300,000 and rent it at a maximum of $ 600 a month.”
In addition, “lower prices in Turkey and Azerbaijan compared to the prices of Iraqi properties, especially since the monthly revenues resulting from rents up to $ 1,000 in some areas, without exceeding the price of the unit $ 30 thousand.
This increase in foreign demand for the purchase of real estate abroad is due to the granting of privileges to those countries, including permanent residence or obtaining citizenship, as well as tax exemption, facilitating transactions of transfer of property, legal guarantees provided and realized profits.
Mansour Ali al-Khalidi, who recently bought two housing units in Azerbaijan, said that “this step was due to his inability to buy a house in Baghdad for $ 70,000 he had received after he sold the land granted to him by the government.” He pointed out that «there are promoters of this type of investment, including real estate companies, and some of these companies to organize the process of rent throughout the months of the year for tourists in exchange for good amounts of money, in addition to permitting permanent residence in Azerbaijan, which I can settle at any time».
“Foreigners are interested in buying houses in Turkish cities, especially Istanbul and tourist cities near the sea, for housing and investment,” Ali Taylan, president of the Union of Real Estate Brokers in Turkey, told media.
“These statistics show the extent to which the Iraqi monetary bloc is being depleted in the country,” said Burhan Abdullah, a member of the Parliamentary Economics and Investment Committee.
“Within one year, Iraqis bought 9,000 housing units in Turkey. If we calculate that the price of the apartment $ 50 thousand, it means that the total $ 450 million, and this amount can be built a new residential complex inside the capital Baghdad ».
“Abdullah blamed the Iraqi private and government banks, which created an environment of repelling investment in the country, even if the banks were proactive in investing cash deposits in the field of housing for citizens to buy housing units in other countries.

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