According to the five year national development plan for 2010-2014, the economy of the Iraq is estimated to grow by 9% annually. Moreover, 2,700 capital projects worth of $186 billion were announced to be launched. $10.7 billion was allocated for reconstruction and $ 72.1 billion for real sector projects in 2013. Remaining $100 billion is expected to be allotted for capital projects by the end of 2014.
According to the Iraq National Investment Commission (NIC), the need for housing units will exceed 3.5 million implying the need for more than 350,000 units per year for the next ten years.4 Considering a sqm cost is $550 in Iraq than a 100 sqm housing unit costs $55,000. So each year $19.3 bn. ($55,000*350,000) should be allocated for the housing projects alone for the next 10 years.
Sami al Araji, chairman of Iraq’s National Investment Commission (NIC), stated that Iraq needs $500-$700 billion in investment for reconstruction. Furthermore Dennis Flannery, Iraq country head of global investment bank Citigroup, pronounced that “The oil industry will throw up tremendous wealth that will transform Iraq, a great frontier opportunity for investors.”
• Within 2010-2014 period government allocated $100 billion, and private sector is expected to allocate $ 86 billion for the real estate and commercial developments.
• The Iraqi government is currently investing $25 billion in housing projects, $8 billion on transportation and $5.5 billion for water and sewage facilities.
• The government is to build 3.5 million new homes over the next decade, roughly 350,000 units per year.
• Over $30 billion is to be invested in housing and commercial projects in Baghdad over the next 10 years.
• Key infrastructure projects include the $3 billion Karbala international airport, $7 billion Baghdad airport and $3 billion Baghdad rail network.
• $4 billion has been allocated for investment in hospitals and clinics in 2011, including 10 hospitals with 200-bed capacity.
• $1.5 billion has been allocated for residential and infrastructure spending in 2011.
• Real estate projects include $20 billion project outside of Baghdad, $50 billion housing project near Karbala, and $2 billion housing project in Mosul.
• Since 2003, over 100 private investors from 26 countries have announced real estate projects in Iraq.
• Sadr City reconstruction project in Baghdad include 75,000 housing units to be built in the by 2016 worth $11.3 billion
• Karbala Investment Commission announced for 4 new housing developments involving investment of $850 million for about 12,000 homes, as well as associated infrastructure including sewerage, water, electricity supplies and roads.
• The US Hill International has been awarded a $200 million contract by the South Korea’s Trac Development Group, to provide project management services for the construction of 100,000 houses and related infrastructure in Basra. The company also has been awarded a $1.3 billion contract for supplying building structural systems to Trac for the new housing development’s initial phase. According to the CEO of Hill International, Irvin Richter, the goal is to complete 3,000 homes each month in order to do the job in three years.