Iraqi housing proposal put forward at Iraq Development Program summit (30/06/05)

A proposal has been drafted by Iraq’s Ministry of Housing & Construction that would provide investors land in Iraq on a long term lease basis or at rates well below market level.

During this week’s Iraq Development Program summit in Amman, Iraqi Deputy Minister of Housing & Construction Thaner Al-Feely and Program Director John Glassey confirmed that three million housing units are needed in Iraq and that only 10,000 units are currently available.

Feely was recently appointed chairman of investment in order to attract foreign direct investment into the country. Currently 70 per cent of property cost in Iraq is the cost of land. The return rate profit margin is expected to be at around 25 per cent, none of which will be taxed.

All foreign direct investment will be insured through the American Export-Import Bank.

The Iraqi Ministry of Housing & Construction is keen to set up a property system like that of the United Kingdom, which is based on a highly competitive building society market.

In order to fulfil this objective, Mr Glassey will produce a white paper for the ministry to propose a high level meeting between the ministry, the international investment community, international property development investors, Iraqi builders and contractors, banks and building societies.

The meeting is expected to take place in the fall of this year.