Iraq launches New Sadr City to tackle housing crisis

Shafaq News/ Iraqi Prime Minister Mohammed Shia al-Sudani has broken ground on New Sadr City, a major housing and infrastructure project to ease Baghdad’s residential crisis.

According to the PM’s office on Wednesday, the 4,000-dunam development between Al-Maamel and Sadr City will include 60,000 housing units, with the government building core infrastructure—roads, water, sewage, electricity, and telecoms—before turning construction over to private developers.

Al-Sudani described the coordination between federal and municipal bodies as a model approach, stating it marks a departure from previous practices in urban development.

The city will feature three sectors, 12 districts, and 52 neighborhoods with residential, commercial, and public spaces. The first phase—11,000 units—has been awarded to a Chinese firm under a 1,200-day contract signed in April.

He assured no forced evictions and reaffirmed support for informal settlement residents, promising structured solutions. Al-Sudani also ordered strict oversight, quality standards, and inclusive planning to avoid past urban development failures.