Effects of the economic and security situation on the real estate and construction market in Syrian Kurdistan

Welat TV - Erbil

The economic expert, Shukri Youssef, confirmed that the ongoing Turkish threats against the cities and towns of Kurdistan are among the main reasons that have paralyzed the reconstruction movement and the real estate market. In addition to urban sufficiency due to oversupply and lack of demand.

In his interview with 'Welat TV' on Sunday 17th November 2024, Shukri Yousef explained the reasons for this decline in construction costs, as all materials are imported from abroad in US dollars, whose exchange rate against the Syrian pound has reached astronomical levels, making it unaffordable for most people. He stated that urban expansion has peaked, and the region has seen enough construction and development.

This is combined with low demand and purchasing activity, in addition to a large number of vacant properties. Shukri stated that the average price of a ready-to-move-in apartment measuring 125 square meters in the center of Qamishlo is approximately $50,000 to $60,000. In contrast, the price of unfinished apartments on higher floors is about $24,000. He pointed out that the cost of finished apartments used to be around $10,000, indicating that prices have surged sevenfold since then.

Youssef emphasized that many expatriates’ livings in Europe have the financial ability to purchase property, and for them, the costs are relatively modest. He mentioned that many displaced individuals are arriving in Qamishlo from Aleppo, including traders and affluent people who buy and own these properties to relieve themselves of the burden of paying rent.

The cities of Syrian Kurdistan are witnessing a weak demand for buying and selling real estate due to the deteriorating economic and security situation and its negative effects. In addition, reconstruction and construction movements have decreased due to continuous Turkish threats to attack the region, the increase in migration outside the country, and the increase in prices of building materials and labor costs.

One citizen explained to Welat TV why he was unable to rebuild his house: 'I live in an old house and I can't rebuild it because of the daily Turkish threats, and I don't have the money to do so, in addition to the high prices of building materials and labor.

The owner of a real estate office in Qamishlo added other reasons to Welat TV: 'Reconstruction in Qamishlo has decreased a lot because building materials are imported from abroad, the exchange rate is increasing, and citizens can't afford it because their income is in Syrian pounds. In addition to that, the agricultural seasons have decreased, migration has increased, and supply is more than demand.