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Housing market in Afghanistan - Currently, the government loan interest in Afghanistan is 20%

Currently, selling property in Afghanistan is mostly done in the fields of apartments, land, residential property and real estate, one of the most important issues and points that we must consider when selling property in Afghanistan is finding a real buyer, which is done by a broker

In Afghanistan, the average price of housing in the city center is $785 per square meter, and the average price of such a house outside the city is $373 per square meter

Afghanistan has a limited formal housing market, especially in rural areas. Many residential properties, particularly in informal settlements, are built without proper legal documentation or adherence to building regulations. This can result in issues related to property ownership and inadequate infrastructure services. Rapid urbanization, population growth, and internal displacement have put significant pressure on the housing market in major cities like Kabul, Herat, and Mazar-i-Sharif. The demand for housing often exceeds the available supply, leading to high property prices and rental rates in urban areas.

The rental market in Afghanistan is an essential component of the housing sector, particularly in urban areas. Rental prices can vary widely depending on location, property type, and demand-supply dynamics. The Afghan government has recognized the need for housing development and has implemented various initiatives to address housing challenges. This includes efforts to formalize land ownership, establish regulatory frameworks, and promote affordable housing projects.

In Afghanistan, the average price of housing in the city center is $785 per square meter, and the average price of such a house outside the city is $373 per square meter. Currently, selling property in Afghanistan is mostly done in the fields of apartments, land, residential property and real estate, one of the most important issues and points that we must consider when selling property in Afghanistan is finding a real buyer, which is done by a broker. Property registration can be done, in order to sell property in Afghanistan, you can sell your property as soon as possible at the regional price by presenting your ownership documents and signing a brokerage contract.

The security situation in Afghanistan has a significant impact on the housing market. Ongoing conflicts, security threats, and political instability can affect property values, investment decisions, and overall market sentiment. International organizations and NGOs play a significant role in housing and urban development in Afghanistan. They often engage in projects aimed at improving housing conditions, providing access to basic services, and supporting the construction of affordable housing units.

Previously, when the population of Kabul city was 700 thousand people, the price of one meter of land in this city was 440 dollars. After 2002, in the big cities of Afghanistan, the price of one meter of land is over 40,000 dollars, the price of a house is from 180,000-200,000 dollars, and in commercial areas it is over 1 million dollars. This behavior is definitely not proportional to the income of the Afghan people. According to the calculation made by the Ministry of Urban Development of Afghanistan, an Afghan person needs $20,000 to buy a 3-room house. Because the Afghan government has a privatization policy and the government could not reactivate its factories and house building companies. There is no other way for the government to give loans and get profit. Currently, the government loan interest in Afghanistan is 20%.

Informal settlements, characterized by unplanned and unauthorized housing, are prevalent in many cities and towns across Afghanistan. These settlements often lack basic infrastructure services, such as water, sanitation, and electricity, and residents face challenges related to tenure security. The construction sector in Afghanistan faces challenges in terms of quality control, adherence to building codes, and safety standards. Many properties may not meet proper construction standards, leading to concerns regarding durability and safety.

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