Property in Iraq Property market in Iraq skyrockets
The Baghdad property market is booming. There are a large number of urban and rural houses for sale in Iraq and prices are going through the roof. But while real estate agents are doing a roaring trade, the phenomenon is not benefiting everybody, and the question of legal ownership could create problems in a country still struggling to find its feet economically.
"At the moment, everybody is working on a matter of trust," said real estate agent Hashim Al-Shamary. "My role now is simple: direct negotiation between landlord and buyer. Deals are struck quickly, but there may be some consequent difficulties in the future."
Many properties have been vacated by senior members of the Baath regime. Some have been confiscated by US forces and some have been left in the control of friends or relatives in the hope of a return sometime in the unforeseeable future. But many houses belonging to members of the ex-regime are being snapped up by real estate agents for comparatively low prices as the owners try to make a quick getaway.
However, this does not mean an abundance of affordable housing for the average Baghdad resident. Prices have soared because certain people have a lot more money to spend.
"Looters have a huge amount of cash now," said one real estate agent speaking on condition of anonymity. "Many first class properties are being snapped up as people throw around their newfound wealth."
There is certainly no shortage of demand for property in Iraq. It is estimated that under the ex-regime 800,000 people were forced to leave the country, many of whom are eager to return.
Kurds are now free to purchase property in the capital, a right that Saddam Hussein denied them for many years. The city was also a favorite haunt for rich businessmen from neighboring states who wished to unwind in a less austere environment.
Baghdad's affluent suburbs are overflowing with palatial mansions which could represent a sound investment for anyone hoping to capitalize when the potentially powerful Iraqi economy swings back into gear.
"In the desirable areas, a 600 square meter property which used to cost $15,000 to $20,000 before the war can now fetch around $30,000," said Al Shamary, whose agency is located in well-heeled Zayuna.
"A first-class property in these districts used to be around $450,000 but now they can come in at anything up to $1 million.
In the aftermath of war and forced regime change, there will be inevitable questions of the legitimacy of any dealings carried out shortly after the invasion.
Iraq is a special case. Saddam Hussein's method of favoritism for certain people or ethnic groups to win political points had an extremely destabilizing effect on the property market. Houses were confiscated from those whom the regime considered unimportant. They were then resold, or in some cases donated to suit the former president's political aims at a given time. The resettlement of Palestinian families in fixed-rent houses in a vain attempt to remodel himself as an Arabist leader exemplify such practices.
Saddam's arbitrary approach to property law is one indication of the enormous problems which will have to be faced by people like Zaidan Kulaf Al-Jaaif, the man in charge of the Committee for the Restoration of Property. The Committee is working under the augur of the Coalition Provisional Authority to restore properties to their rightful owners all over the country.
