ERBIL, Kurdistan Region - The Iraqi government has launched a new plan to address the housing crisis with new construction outside major urban centres that will relieve urban congestion and improve access to affordable housing, an official from the Ministry of Construction, Housing, Municipalities, and Public Works told state media on Friday.
“The ministry has adopted a new policy to tackle the housing crisis in Iraq by establishing integrated residential cities outside the boundaries of major cities, instead of relying on vacant urban spaces within them,” said Sadiq Mohammed al-Fartousi, director general of the ministry’s Housing Department.
The plan includes over 600 investment projects across 15 provinces to deliver around 600,000 housing units. The project is expected to be completed in the first quarter of 2026. There is also a broader program with a target of one million units through nationwide real estate development projects.
“The ministry has shifted the national housing policy from an ‘urban infill’ approach to a ‘clustered expansion’ model aimed at reducing population and service pressure inside cities and providing affordable land for citizens,” Fartousi said.
According to the most recent census, conducted in late 2024, Iraq’s population has grown to well over 45 million with a growth rate of 2.3 percent. Urban areas account for 70.17 percent of the total population, while 29.83 percent live in rural areas. In the Kurdistan Region, urbanization is higher, with 84.57 percent of the population residing in cities and 15.43 percent in rural areas.
Fartousi explained that “the ministry has signed several contracts to build new residential cities, including al-Ward City, which will contain more than 120,000 housing units, al-Jawahiri City with over 30,000 units, and al-Ghazlani City and other projects currently under tender.”
“The prime minister has laid the foundation stone for al-Fidaa Residential City in Nasiriyah, part of real estate development projects designated for Ministry of Defense personnel,” he added.
The ministry has signed more than 11 real estate development contracts.
Units will be sold at subsidized prices.
“The state provides free units for families of martyrs, a 75 percent discount for widows and disabled individuals, and a 20% discount for other citizens, with a repayment period of up to 35 years, Fartousi said.
