There is a growing demand for properties in Iraq, particularly in cities like Baghdad, Erbil, and Sulaymaniyah. Despite the unstable political environment, as the country stabilizes, there is an expectation that real estate prices will rise further. The government of Iraq has plans to invest in infrastructure development, which could lead to an increase in property values. High unemployment rates, poverty, and security concerns have affected the real estate sector, but as these issues are addressed, the market is expected to grow. The Iraqi real estate market has seen growth due to the influx of foreign investments and a surge in construction activities. Factors such as money laundering in real estate and the acquisition of expensive properties by officials have also been cited as reasons for the price increase.

Iraq also has houses in the city center with an average price of $1,896 per square meter and an average price of $875 per square meter outside the city. The wealthy and well-connected dominate the Iraqi housing market. Many of these wealthy individuals are tired of taking their money out of Iraq due to Western sanctions and are therefore turning to local investments within Iraq.

Rising real estate prices in Baghdad in recent years have prompted many property buyers to look for properties in nearby cities. This has led to price increases in cities close to the capital, including Fallujah and Ramadi, the capital of the province. After decades of war and instability, the real estate market of the Iraqi capital has undergone major changes. To meet the existing needs, 3.5 million residential units are needed. Rapid demographic changes have compounded this challenge. Considering that Iraqi families have an average of 5 people and since the population in this country increases by one million people every year, 250,000 additional housing units are needed annually.

Through state-owned banks and the Iraqi Housing Fund, the Iraqi government has offered a series of new loans ranging from 50 million Iraqi dinars ($38,462) to 150 million Iraqi dinars ($115,385). To counter high property prices, Anbar's local administrations have issued investment permits to boost the construction of residential complexes, including outside Fallujah. Some observers believe that similar measures at the national level could help solve the housing crisis and reduce skyrocketing prices. But this view is not universal.

As Iraq stabilizes and security concerns are addressed, there can be an increase in demand for properties, particularly in major cities like Baghdad, Erbil, and Sulaymaniyah. Growing demand, coupled with limited supply, can lead to upward pressure on prices. Government investments in infrastructure development can have a positive impact on the real estate market. Improved infrastructure, such as roads, utilities, and public services, can enhance the overall desirability of areas and contribute to price increases.

The influx of foreign investments and increased construction activities can stimulate the real estate market. Foreign investors may view Iraq as an emerging market with potential for returns on their investments, which can drive up property prices. High unemployment rates and poverty can impact the purchasing power and affordability of potential buyers, which may affect the real estate market. However, as economic conditions improve and employment opportunities increase, it can contribute to the growth of the market.