MARKET RESEARCH Housing Sector

Kurdistan’s growing economy, along with improved political stability, has resulted in a housing boom in the Region. Increasing job opportunities for the local workforce and foreign investors alike are significantly increasing demand in the housing market.

In Erbil, the KRG has made it a priority to enhance the existing road infrastructures in order to accommodate the growing labor force driven to the city by both national and foreign companies eager to expand into Kurdistan. Thus, Erbil boasts a very favorable housing market with significant prospects.


Kurdistan is now home to numerous housing projects, amounting to a total capital investment of $11.4 Billion. This figure represents 52.6% of the Region’s total investment capital and occupies 44.51% of the total land investment distributed so far. These numbers represent the largest investment in the Region, both in terms of capital and land. Furthermore, as an incentive to real estate developers looking to invest in the Region, the KRG promises to provide new projects with electricity, water, sewage, roads, and telecom connectivity to the vicinity.


Several housing complexes are currently being developed, mostly by foreign contracting firms. The projects consist mainly of estates and villa compounds. The location of these sites is carefully chosen as to benefit from tranquil mountainous areas while still being relatively close to core facilities such as schools and hospitals. The property boom in the Region is being met with a larger increase in demand, resulting in constantly rising housing prices, thus ensuring hefty margin profits all over the Region. Moreover, rental yields in the Region fall between 6 to 17 percent, which is quite promising compared to Dubai average yields, standing at 5 to 7 percent. Most of the buyers reportedly pay in cash. Kurdistan’s ‘cash culture’ ensures that house prices remain sheltered from potential mortgage crises.
 
The table below presents some of the largest projects so far.
Project Name Governorate Capital Developper(s) Content Location
Avro City Duhok $500 million Gurbag Construction Group and Guinsal Construction 120 buildings, 3396 apartments, 56 villas, education facility, 5-star hotel, sports stadium, commercial district, healthcare facilities, restaurants and mosques Near Duhok University
Ganjan City Erbil $312 million Happy Land Group 2000 houses in either one or two storey buildings, a football stadium, parks,a leisure club and a mosque  
Dream City Erbil $300 million MECRI(Middle East Construction Company) 1200 units, 4 buildings, Nursery, 3 Schools, Clinic, multipurpose hall, restaurants, mosque  
American Village Erbil $80 million Sigma International Construction 300 villas A few kilometers away from the Erbil International Airport, the International School of Choueifat and Al Majdi Hospital
German Village Sulaymaniah $62 million Nalia Group 164 villas, 640 flats  


When taken as a proxy for property prices, rental prices illustrate a clear increase in property value in the Region.