ERBIL, Kurdistan Region - The Iraqi government has launched a new plan to address the housing crisis with new construction outside major urban centres that will relieve urban congestion and improve access to affordable housing, an official from the Ministry of Construction, Housing, Municipalities, and Public Works told state media on Friday.
“The ministry has adopted a new policy to tackle the housing crisis in Iraq by establishing integrated residential cities outside the boundaries of major cities, instead of relying on vacant urban spaces within them,” said Sadiq Mohammed al-Fartousi, director general of the ministry’s Housing Department.
The plan includes over 600 investment projects across 15 provinces to deliver around 600,000 housing units. The project is expected to be completed in the first quarter of 2026. There is also a broader program with a target of one million units through nationwide real estate development projects.
“The ministry has shifted the national housing policy from an ‘urban infill’ approach to a ‘clustered expansion’ model aimed at reducing population and service pressure inside cities and providing affordable land for citizens,” Fartousi said.
According to the most recent census, conducted in late 2024, Iraq’s population has grown to well over 45 million with a growth rate of 2.