Real estate acquisition in Iraq

Iraq – the country located in the Middle East, in the territory of the Mesopotamic lowland, in a valley of such rivers as the Tiger and Euphrates. This state borders on such countries as Kuwait, Saudi Arabia, Jordan, Syria, Turkey and Iran. Iraq is washed by waters of the Persian Gulf. Until recently foreign citizens were forbidden to acquire real estate in the territory of the country. However today the situation changed radically owing to what Iraq was recognized by the new market of real estate in the Middle East which is quite attractive to foreign investors. First of all, such state of affairs is caused by economic and political stabilization of a situation in the country thanks to what the government began to pay special attention to construction sphere. So, the mayor of Baghdad announced the plan according to which for the next five years in the capital of Iraq about 300 thousand objects of real estate will be constructed. Today negotiations with reliable and professional developers who are interested in an investment of means in the developing Iraq market of real estate are carried on. It is necessary to tell that the authorities of the country approved amendments to the legislation according to which by foreigners it can be got in property not only real estate, but also grounds. However it will be possible to buy here the land only for the purpose of its application under a housing estate. Besides is planned to forbid sale still unfinished objects. The purposes and tasks of the government are clear - attraction of the foreign capital in national economy which suffered from war with the United States.

Today the prices of real estate (especially in Baghdad) grow in Iraq much to astonishment of world experts. And it for all that that in the country isn't present traditional mortgage programs, payment is carried out by cash, and the bigger quantity of objects wasn't reconstructed decades. Let's note that construction of new housing estates in the territory of Iraq isn't conducted almost that significantly limits the offers existing in the market of real estate, but thus stimulates demand. The residential real estate located in the Green zone uses special popularity. Local developers it is planned to construct here some luxury modern hotels, and also shopping center and comfortable housing estates. And here stops them while only uncertainty in the future of this country. Despite all above-mentioned shortcomings, cost of square inhabited meters in Iraq grows as far-sighted businessmen could consider high potential in this country (you shouldn't forget that Iraq has large stocks of oil and gas, thus is the member of the OPEC organization). So, the small house located in the Shiite suburb, it is quite possible to get for 40000 dollars (all a year ago same I cost only 20000 dollars). And here rent of office building in the area Mansur reaches 10000 c.u. a month (in this area there are foreign embassies, and also branches of the various companies). As a whole in Iraq there are no about 8 million houses.

However this problem already is solved – the large construction company from the United Arab Emirates started project implementation on the complex construction which cost is estimated approximately at 4.5 billion dollars. This complex will be erected in the city of Erbil being the capital of autonomous Kurdistan. The first phase of the project – construction of the Tarin Hills complex including a golf course, calculated on 18 holes, and also both inhabited, and commercial constructions. Besides the authorities of Baghdad already signed the contract according to which the modern and qualitative housing will be constructed, on what was allocated about $15 billion. For building once functioning military base located in the east of the city is given. As a whole the project is calculated on 8 years, including construction of 65 thousand apartments, and also a medical complex and sports constructions. But there is more to come – in the western part of Baghdad implementation of the third project in the field of the housing which price will make about $5-6 billion is planned. As you can see, the authorities of Iraq very actively were engaged in attraction to the country of foreign investments, and also tourists. With the same purpose in the country the law which allows foreign citizens to get in property real estate objects, and also the land plots was adopted. In addition, the Ministry of Foreign Affairs of Iraq declared simplification hitherto quite high visa regime for foreign investors, and also tourists. No wonder that Iraq represents today enough titbit for those who wants to get essential profit on further resale or leasing of real estate of Iraq.