Move over, Dubai: Top five Mideast property hotspots to watch . 4. #Erbil, #Iraq International investors looking for any degree of security would not normally look to war-torn Iraq, given the constant stream of headlines about sectarian violence, political squabbles and suicide bombings. Erbil, capital of the largely autonomous region of Iraqi Kurdistan, is however gaining a reputation as a safe haven from the turmoil in much of the country. Erbil’s fast-growing housing market will be further strengthened by leading Dubai developer Emaar’s announcement in October to develop a $3bn residential project in the city. “A lot of companies want to try and use Erbil as a gateway into Iraq,” said Albert. Erbil has also carved out a reputation as a launch-pad for business and investment. A report by Colliers earlier this year said that government studies highlight the need for 112,500 housing units during the next five years. But it is “doubtful” that existing construction will be able to keep pace with demand in Erbil, the report noted. Average sale prices per square meter inside master-planned communities stand at $1,677 per square meter, while villa prices range between $330,000 and $625,000, and apartments from $300,000 to $350,000. While opportunities for investment exist in filling existing shortages, one caveat for developers and buyers is the difficulty obtaining data. The lack of accountability and transparency in Iraq’s wider real estate market is further evidenced by a rather grim “opaque” ranking by Jones Lang LaSalle in 2012 – ranking it among Mongolia, Pakistan, and Sudan at the bottom of the list. However, due to Erbil’s recent emergence as a hub for commercial activity, a growing residential market has followed. Demand for housing is heavily influenced by the lack of banking infrastructure in the country. “What you see in Erbil is a lot of off-plan sales, where people are basically in real estate because there’s nowhere else to put their money,” said Albert. Wealthy #Kurds seem likely to continue investment in the city for some years to come, he adds. A report on the city released earlier this year by Colliers said Erbil’s housing market sees a slow growth in supply, boosting demand from both city residents and buyers from other parts of Iraq. Foreigners wishing to buy property in Erbil are currently limited to certain developments aimed at expatriate workers, an attorney from the city’s branch of legal consultants Meyer-Reumann & Partners told Al Arabiya News. Despite current restrictions, Emaar’s entry in to the real estate market may usher in new legislation allowing for foreign ownership, says Albert.
Posted on: Sat, 30 Nov 2013 12:47:47 +0000
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