Iraq housing crisis: Informal settlements rise as costs soar

Iraq is facing a severe housing crisis characterized by a significant rise in informal settlements. While urban expansion and new residential complexes are increasing, many families remain unable to afford homes due to high land and construction costs, as well as inflation.

The Ministry of Construction, Housing, Municipalities and Public Works estimates a housing deficit of approximately 2.3 million units. Dr. Mehdi Al-Alaq, senior advisor to the United Nations Population Fund in Iraq, reports that more than 3.5 million citizens live in informal settlements. Data shows that the number of these settlements grew from 1,515 in 2013 to 4,670 in 2022.

The crisis is exacerbated by the concentration of jobs, education, and essential services in major cities like Baghdad, driving up real estate demand and prices in those areas. Although the government has allocated about one million plots of land to address the shortage, experts note that land allocation alone does not solve the problem, as families still require financing for construction and access to essential infrastructure such as water, electricity, roads, and schools.