Investment in Diyala: Poor enforcement fuels housing market imbalance

Shafaq News – Diyala

Investment projects across Diyala suffer from weak oversight and widespread violations, a situation that has gone largely unaddressed, the head of the province’s Investment Committee said on Friday.

Aws al-Mahdawi told Shafaq News that repeated breaches—especially in the housing sector—have been flagged in recent months, yet most enforcement remains limited to routine inspection reports. “Investors are rarely penalized, even when they deviate from approved designs or exceed prices outlined in feasibility studies."

The issue is particularly widespread in Diyala’s capital, where the absence of strategic commercial developments such as malls and large retail centers is seen as a "major gap," and housing projects do little to ease the crisis. According to al-Mahdawi, some developers are pricing units up to three times higher than permitted, with rates exceeding 1.6 million dinars (roughly $1,200) per square meter.

He called for a clear investment roadmap focused on larger, better-planned residential zones. “Ideal plots should range from 1,000 to 2,000 dunams and include commercial infrastructure—unlike the current trend of 13- to 30-dunam developments with uniform housing and no services.”

Despite these challenges, al-Mahdawi described Diyala’s overall investment climate as “favorable,” noting that improved governance could unlock growth in housing, services, and tourism.