Housing expansion in Iraq targets half cut in shortage

Shafaq News – Baghdad

Iraq plans to reduce its housing shortage by at least 50% by 2030 under a long-term residential development strategy, the Iraqi Ministry of Construction, Housing, Municipalities, and Public Works said on Sunday.

Ministry spokesperson Nabil Al-Saffar told Shafaq News that the plan centers on expanding planned housing cities to address demand that existing residential projects can no longer meet, relying on partnerships with private developers to accelerate construction at scale.

Under the model, developers provide full infrastructure and essential services on designated land, while allocating a portion of completed units to the state for distribution to eligible groups. The ministry is also prioritizing concessional loans for low- and middle-income households to improve access and affordability.

While noting a shift in housing patterns driven by population growth, Al-Saffar affirmed that the influx of new units has already pushed property prices down by at least 10%, adding that further easing is expected as supply continues to expand.

Read more: Soaring real estate prices deepen Iraq'shousing crisis

The push follows Iraq’s first national census in nearly four decades, conducted on November 20–21, 2024, which recorded 46.1 million residents across more than eight million households—highlighting growth that is outpacing infrastructure expansion.

Readmore: Census shock: Can Iraq’s system absorb its population explosion?

According to official data from the Federal Board of Supreme Audit, 65% of government housing projects were delayed or abandoned as of 2023. With an annual population growth of about 2.6%, Iraq needs to add at least 250,000 housing units each year to keep pace with demand.