Severe recession in the construction and reconstruction sector in Syrian Kurdistan

Welat TV - Erbil

The cities and towns of Syrian Kurdistan are witnessing a noticeable recession in the movement of buying and selling real estate, as a result of the worsening economic crisis and the unstable security situation.

Therefore, the impact of this extends to the construction and reconstruction sector, which is witnessing a significant decline due to the ongoing Turkish threats to attack the region, in addition to the high levels of immigration from the country.

Issa Ibrahim, a resident of Qamishlo city, explained that his current situation sums up the crisis of many, saying: "I live in an old house and I cannot rebuild it due to the daily Turkish threats, and I do not have the money to renovate my house."

Ibrahim pointed out that the high prices of building materials, such as cement and iron, and labor costs have made reconstruction or construction almost impossible.

Ibrahim added: "Previously, the contractor who built a building would get an apartment or two as profits, but now the contractor loses and cannot cover the costs."

Faisal Majeed, owner of a real estate office in Qamishlo, confirmed that the real estate crisis is exacerbated by importing building materials in US dollars, while revenues are in Syrian pounds. He explained that "the prices of building materials are very high, which makes construction very expensive. Even blocks, cement and iron are now beyond the capacity of contractors, let alone ordinary individuals."

Majeed pointed out that supply is increasing while demand is weakening, adding that "many apartments remain vacant. In a building consisting of nine apartments, we find only three inhabited and six for sale.

This phenomenon is repeated in most buildings, which reflects the severe stagnation in the real estate market."

The decline in the construction movement causes many workers to lose job opportunities that were available during the construction and cladding stages, which increases the difficulty of living conditions for many.

Majeed pointed out that the economic situation in the region is closely linked to the political and security situation, saying: "The instability of the political situation directly leads to economic instability, which is what we are currently witnessing in the real estate market."

In light of the ongoing security threats and the lack of political stability, the real estate sector in Syrian Kurdistan continues to suffer from an unprecedented recession. With the rising costs of building materials and increasing rates of migration, any potential recovery in the construction movement or improvement in the real estate market is becoming more difficult.